TORONTO, March 3, 2021 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs") announced, by way of a press release earlier today, that
it intends to merge the Horizons Active Emerging Markets Dividend
ETF ("HAJ") and Horizons Active US Dividend ETF
("HAU" and together with HAJ, the "Merging
ETFs") into the Horizons Active Global Dividend ETF
("HAZ" or the "Continuing Fund") after the close of
business on Friday, March 12, 2021
(the "Mergers"). As the Merger Date represents a deemed tax
year end for each of the Merging ETFs and the Continuing Fund, the
Manager is advancing the first quarter distributions that the ETFs
would have ordinarily declared at the end of March, instead
electing to declare them in advance of the Mergers.
Each ETF is required to distribute any net income and capital
gains that they have earned in a tax year. All of the distributions
indicated as "Cash Distribution per Unit" in the table below (the
"Cash Distributions") will be paid in cash. The dividend
reinvestment plan ("DRIP") of the respective ETFs has been
suspended for these distributions in order to facilitate the
Mergers. The DRIP will be reinstated for HAZ following completion
of the Mergers.
In addition to the Cash Distributions, HAZ may be required to
pay a non-cash distribution, indicated as "Estimated Reinvested
Non-Cash Distribution per Unit" in the table (the "Non-Cash
Distribution"). If required, the Non-Cash Distribution will be
reinvested and reported as a taxable distribution and will be used
to increase each unitholder's adjusted cost base of their units of
HAZ. The Non-Cash Distribution will be reinvested automatically in
additional units of HAZ and immediately consolidated so that the
number of units held by the unitholder, the units outstanding of
HAZ and the net asset value of HAZ will not change as a result of
the Non-Cash Distribution. The Non-Cash Distribution rate in the
table below is presented on an estimated basis. The final Non-Cash
Distribution rate will be included in a press release confirming
the Merger ratios subsequent to the Merger Date.
The ex-dividend date for the Cash Distributions is anticipated
to be March 9, 2021, for all
unitholders of record on March 10,
2021. The Cash Distributions for units of each ETF will be
paid in cash on or about March 15,
2021. The record date and nominal payment date applied to
the HAZ Non-Cash Distribution will be March
12, 2021, though in actuality there will be no physical
payment made as would be the case with the Cash Distributions. The
HAZ Non-Cash Distribution, if required, will take place immediately
preceding the Mergers, and will not affect the unitholders of HAJ
and HAU.
|
ETF
Name
|
Ticker
Symbol
|
Cash
Distribution per Unit
|
Annualized
Yield*
|
Estimated
Reinvested
Non-Cash
Income
Distribution
per Unit
|
Estimated
Non-Cash
Distribution
as % of NAV
|
|
Horizons Active
Emerging Markets Dividend ETF
|
HAJ
|
$0.02671
|
0.76%
|
-
|
-
|
|
Horizons Active US
Dividend ETF (1)
|
HAU
|
$0.03711
|
1.01%
|
-
|
-
|
|
HAU.U
|
$0.03711
|
1.01%
|
-
|
-
|
|
Horizons Active
Global Dividend ETF
|
HAZ
|
$0.12279
|
2.01%
|
$0.55436
|
2.27%
|
|
|
|
(1)
|
Distributions for
Horizons Active US Dividend ETF are declared and paid in Canadian
dollars, including those listed under the U.S. dollar traded ticker
HAU.U. The approximate U.S. dollar equivalent of the cash
distribution rate for HAU.U is $0.02941 per unit. For unitholders
who hold the U.S. dollar traded HAU.U, distribution payments will
typically be converted to U.S. dollars by the unitholder's account
holder.
|
Distributions will vary from period to period. For further
information regarding the Distributions, please visit
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 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.