TORONTO – June 21, 2022 – Horizons ETFs Management (Canada) Inc. (“Horizons ETFs” or the “Manager”) held special meetings of unitholders of its suite of covered call ETFs listed in the table below (the “ETFs”), on June 21, 2022, during which unitholders approved all matters relating to proposed changes to the investment objectives of the ETFs previously announced in an information circular that was made available to unitholders.
The approval of the changes follows the proposal made by the Manager and published in a circular sent to all unitholders and announced by press release dated May 17, 2022, both available at www.sedar.com and www.HorizonsETFs.com. An update to the circular in respect of Horizons Enhanced Income Gold Producers ETF was announced by press release on June 2, 2022 and was subsequently filed on www.sedar.com.
The new investment objectives, which will be effective on June 24, 2022, follow an extensive review by the Manager of the ETFs. The ETFs will begin to trade under their new names and tickers at the opening of trading on June 27, 2022. The changes are further described below:
| Current Name and Ticker | New Name and Ticker | New Investment Objectives |
| Horizons Enhanced Income Equity ETF (“HEX”) | Horizons Canadian Large Cap Equity Covered Call ETF (“CNCC”) | CNCC seeks to provide: (a) exposure to the performance of the large-cap segment of the Canadian equity market; and (b) monthly distributions of dividend and call option income. To mitigate downside risk and generate income, CNCC will employ a dynamic covered call option writing program. |
| Horizons Enhanced Income Energy ETF (“HEE”) | Horizons Canadian Oil and Gas Equity Covered Call ETF (“ENCC”) | ENCC seeks to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of Canadian companies that are involved in the crude oil and natural gas industry (currently, the Solactive Equal Weight Canada Oil & Gas Index); and (b) monthly distributions of dividend and call option income. To mitigate downside risk and generate income, ENCC will employ a dynamic covered call option writing program. |
| Horizons Enhanced Income Financials ETF (« HEF« ) | Horizons Equal Weight Canadian Bank Covered Call ETF (« BKCC« ) | BKCC seeks to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of equal-weighted equity securities of diversified Canadian banks (currently, the Solactive Equal Weight Canada Banks Index); and (b) monthly distributions of dividend and call option income. To mitigate downside risk and generate income, BKCC will employ a dynamic covered call option writing program. |
| Horizons Enhanced Income US Equity (USD) ETF (« HEA.U« )* | Horizons US Large Cap Equity Covered Call ETF (« USCC.U« ) | USCC.U seeks to provide: (a) exposure to the performance of the large-cap market segment of the U.S. equity market and (b) monthly U.S. dollar distributions of dividend and call option income. To mitigate downside risk and generate income, USCC.U will employ a dynamic covered call option writing program. USCC.U will not seek to hedge its exposure to the U.S. dollar back to the Canadian dollar. |
| Horizons Enhanced Income International Equity ETF (« HEJ« ) | Horizons NASDAQ-100 Covered Call ETF (« QQCC« ) | QQCC seeks to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of the largest domestic and international nonfinancial companies listed on the NASDAQ stock market (currently, the NASDAQ-100® Index); and (b) monthly U.S. dollar distributions of dividend and call option income. To mitigate downside risk and generate income, QQCC will employ a dynamic covered call option writing program. QQCC will not seek to hedge its exposure to the U.S. dollar back to the Canadian dollar. |
| Horizons Enhanced Income Gold Producers ETF (« HEP« ) | Horizons Gold Producer EquityCovered Call ETF (« GLCC« ) | GLCC seeks to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of equity securities of diversified North American listed gold producers (currently, the Solactive North American Listed Gold Producers Index) and (b) monthly distributions of dividend and call option income. To mitigate downside risk and generate income, GLCC will employ a dynamic covered call option writing program. |
* The Canadian dollar version, “HEA”, will change to “USCC”.
There are no changes to the management fee of the ETFs. Further details regarding the changes can be found at www.sedar.com and www.HorizonsETFs.com.
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 over $22 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
Categories: Communiqués