TORONTO, March 3, 2021 /CNW/ - Horizons ETFs
Management (Canada) Inc.
("Horizons ETFs" or the "Manager") is pleased to
announce that following special meetings of unitholders (the
"Meetings") of Horizons Active Emerging Markets Dividend ETF
("HAJ") and Horizons Active US Dividend ETF ("HAU"
and together with HAJ, the "Merging ETFs")
held on March 2, 2021, unitholders of
the Merging ETFs approved a proposal to merge each of the Merging
ETFs (the "Mergers") into the Horizons Active Global
Dividend ETF ("HAZ" or the "Continuing Fund"),
another ETF managed by the Manager.
The approval of the Mergers follows the proposal made by the
Manager and published in a circular sent to all unitholders and by
press release dated January 29, 2021, both available
at www.sedar.com and www.HorizonsETFs.com. The
necessary regulatory and Independent Review Committee approvals
were also received.
As the Continuing Fund is a substantially larger fund than
either Merging ETF and is also managed by the Manager, merging the
Merging ETFs into the Continuing Fund will provide unitholders of
each Merging ETF with the opportunity to continue their investment
in a dividend-focused ETF that will have a larger market
capitalization and a broader, global dividend mandate, which
includes equity and equity-related securities of companies with
operations located anywhere in the world.
The Mergers potentially reduce the operating and regulatory
costs of operating each Merging ETF and HAZ as separate ETFs, and
the unitholders of the Continuing Fund, as a result of its greater
size, may benefit over time from a reduction of its management
expense ratio as its operating and regulatory costs are expected to
be spread over a larger asset base.
The Merger is expected to take place on or about March 12,
2021, after the close of business (the "Merger Date"), with
units of the Merging ETFs being delisted for trading from the
Toronto Stock Exchange (the "TSX") at the close of business
on that same date. No further subscriptions are permitted into HAU
and HAJ. The last business day to submit redemptions is trade
date March 10, 2021.
Holders of U.S. dollar denominated units of HAU will, as a
result of the Mergers, become holders of Canadian dollar
denominated units of the Continuing Fund, based on an exchange rate
determined by the Manager.
As the Merger Date represents a deemed tax year end for each of
the ETFs, the Manager will publish an additional press release
regarding any potential distributions in advance of the
Mergers.
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 $17.5 billion of
assets under management and 94 ETFs listed on major Canadian stock
exchanges.
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.
SOURCE Horizons ETFs Management (Canada) Inc.