Launched on February 6, 2020, HSAV seeks to generate modest capital growth by investing primarily in high-interest deposit accounts with Canadian banks. While any decision to pay dividends or other distributions is within the discretion of the Manager, HSAV has not made any distributions since its inception, nor is it currently expected to make any regular cash distributions.
In January 2021, Horizons ETFs announced that it would suspend subscriptions of HSAV once its NAV exceeded $1.5 billion. It is the Manager’s view that this suspension will help manage potential tax implications and ensure that HSAV can continue to reinvest its distributions, consistent with HSAV’s current investment objectives.
“Less than one year after its launch in February 2020, HSAV reached a milestone of $1 billion in assets – one of only approximately 60 Canadian ETFs to do so within their first twelve months of trading,” said Steve Hawkins, President and CEO of Horizons ETFs. “This decision to suspend HSAV subscriptions will allow the ETF’s current investors to continue to potentially generate modest growth while being invested solely in cash deposits.”
As noted in HSAV’s prospectus, if the ETF experiences a significant increase in total NAV, the Manager may, in its sole discretion and if determined to be in the best interests of shareholders, decide to suspend subscriptions for new ETF shares if considered necessary or desirable in order to manage potential tax implications and/or to permit HSAV to achieve, or continue to achieve, its investment objectives.
This suspension of subscriptions will not affect the ability of existing shareholders of HSAV to sell their shares in the secondary market at a price reflective of at least its NAV per share, assuming normal course market conditions. However, investors and potential investors should note that during a period of suspended subscriptions, the Manager expects shares of HSAV to trade at a premium to its NAV per share. Due to this expected premium, Horizons ETFs is strongly discouraging purchases of shares of HSAV during this suspension of subscriptions.
The Manager currently anticipates that if the NAV of HSAV were to drop below $1.5 billion, the Manager intends to resume subscriptions for shares of the ETF. Any subsequent resumption of subscriptions for HSAV will be announced by press release and posted on the Manager’s website.
In November 2021, Horizons ETFs launched the Horizons High Interest Savings ETF (“CASH”). CASH seeks to maximize monthly income for unitholders while preserving capital and liquidity by investing primarily in high interest deposit accounts with Canadian banks. The investment objective of CASH is similar to HSAV, except unlike HSAV, CASH seeks to pay out regular monthly distributions of income.
“We launched CASH to provide investors with another competitive ETF solution which currently has an industry high net yield compared to the other Canadian high interest savings exchange traded funds that make regular distributions,” said Mr. Hawkins. “CASH has many of the same characteristics as HSAV, however CASH is a conventional money market exchange traded fund that has been designed to pay out monthly distributions instead of reinvesting them the way HSAV does.”
As CASH is structured as a conventional money market exchange traded fund that pays out regular cash distributions, the Manager has no intention of suspending subscriptions for the units of CASH.
For more information about HSAV, please visit: www.HorizonsETFs.com/HSAV
For more information about CASH, please visit: www.HorizonsETFs.com/CASH
About Horizons ETFs Management (Canada) Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada) Inc. is an innovative financial services company and offers one of the largest suites of exchange traded funds in Canada. The Horizons ETFs product family includes a broadly diversified range of solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. Horizons ETFs has more than $21 billion of assets under management and 104 ETFs listed on major Canadian stock exchanges.
For all inquiries:
Please contact Horizons ETFs at 1-866-641-5739 (toll-free) or (416) 933-5745
info@horizonsetfs.com
Commissions, management fees and expenses all may be associated with an investment in exchange traded products (the “Horizons Exchange Traded Products”) managed by Horizons ETFs Management (Canada) Inc. The Horizons Exchange Traded Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Horizons Exchange Traded Products. Please read the relevant prospectus before investing.
Certain statements may constitute a forward-looking statement, including those identified by the expression “expect, “anticipate” and similar expressions (including grammatical variations thereof). The forward-looking statements are not historical facts but reflect the author’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements. These forward-looking statements are made as of the date hereof and the authors do not undertake to update any forward-looking statement that is contained herein, whether as a result of new information, future events or otherwise, unless required by applicable law.
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