Horizons Active S&P/TSX 60™ Index Covered Call ETF To Trade On Toronto Stock Exchange
Horizons Active S&P/TSX 60™ Index Covered Call ETF (the “ETF”) - An application has been granted for the original listing in the Industrial category of 465,000 Class E units (the “Class E Units”) and 50,000 Advisor Class units (the “Advisor Class Units”) of the ETF (collectively, the “Units”), all of which will be issued and outstanding upon completion of an initial public offering (the “Offering”).
Listing of the Units will become effective at 5:01 p.m. on Monday, January 14, 2013 in anticipation of the Offering closing prior to the opening of business on Tuesday, January 15, 2013. The Units will be posted for trading at the opening of business on, Tuesday, January 15, 2013, upon confirmation of the closing.
The ETF is authorized to issue an unlimited number of Units, each of which represents an equal, undivided interest in the net assets of the ETF. Units of the ETF are being issued and sold on a continuous basis and there is no maximum number of Units that may be issued.
Registrations and transfers of Units will be effected through the book-entry only system administered by CDS Clearing and Depository Services Inc. Beneficial owners of Units will not have the right to receive physical certificates evidencing their ownership of the Units. Units must be purchased, transferred and surrendered for redemption only through a CDS participant.
Additional information on the Units may be found in prospectus dated January 4, 2013 (the “Prospectus”), which is available at www.SEDAR.com. Capitalized terms not otherwise defined herein are as defined in the Prospectus.
Class E Units
Stock Symbol:HAXCUSIP: 44051P 20 9Currency: CDN$
Advisor Class Units
Stock Symbol:HAX.ACUSIP: 44051P 10 0 Currency: CDN$
Market Maker:National Bank Financial Inc.
Address:26 Wellington Street East
Toronto, Ontario M5E 1S2
Telephone Number:(416) 933-5745
Fax Number:(416) 777-5181
Investor Relations:Martin Fabregas
Tel.: (416) 601-2508
Chief Financial Officer:Robert Shea
Corporate Secretary:Steven J. Hawkins
Incorporation:The ETF is an open-ended mutual fund trust established under the laws of Ontario. The ETF was created pursuant to an amended and restated master declaration of trust for the ETF made as of December 31, 2008, as amended January 4, 2013.
Manager and Trustee:AlphaPro Management Inc.
Investment Manager:Horizons Investment Management Inc.
Fiscal Year End:December 31
Nature of Business:The investment objective of the ETF is to provide Unitholders with: (a) exposure to the performance, to the extent possible, of the S&P/TSX 60™ Index (the “Reference Index”), together with the impact of a covered call strategy, before fees, expenses; and (b) monthly distributions of dividend and call option income. The ETF will invest primarily in a portfolio of equity and equity related securities of Canadian companies that are constituents of the Reference Index. To mitigate downside risk and generate income, the ETF will generally write covered call options on the option eligible securities in its portfolio. The level of covered call option writing may vary based on market volatility and other factors.
Transfer Agent &
Registrar:CIBC Mellon Trust Company at its principal office in Toronto.
Class E and
Advisor Class Units:The only difference between Class E Units and Advisor Class Units is that a higher annual management fee (“Management Fee”) is charged to the Advisor Class Units and such higher fee reflects the service fee payable to a registered dealer in respect of the Advisor Class Units held by clients of the registered dealer (“Service Fee”) by the Manager. No Service Fee is paid to registered dealers in respect of Class E Units. As a result, the net asset value per Class E Unit of an ETF will not be the same as the net asset value per Advisor Class Unit of that ETF.
Conversion of Units:Unitholders may convert Advisor Class Units into Class E Units or Class E Units into Advisor Class Units. To do so, Units must be surrendered and the Unitholder's CDS participant must deliver to CDS (at its office in the City of Toronto) on behalf of the Unitholder a written notice of the Unitholder's intention to convert during the period from the first day of a month until 5:00 p.m. (Toronto time) on the last business day prior to the 16th day of such month. Units surrendered for conversion will be converted on the last Trading Day of that Month (the “Monthly Conversion Date”). For each Advisor Class Unit or Class E Unit so converted, a Unitholder will receive a number of Class E Units or Advisor Class Units equal to the net asset value per Advisor Class Unit or Class E Unit as of the Monthly Conversion Date divided by the net asset value per Class E Unit or Advisor Class Unit as of the Monthly Conversion Date.
Automatic Reinvestment:It is anticipated that the ETF will make distributions, if any, to their Unitholders on a monthly basis.
To the extent that the ETF has not distributed the full amount of its net income (including net realized capital gains) for tax purposes in any given year, the difference between such amount and the amount actually distributed by the ETF will be paid at year end as a “reinvested distribution”. Reinvested distributions on Units of the ETF will be reinvested automatically in additional Units of the ETF at a price equal to the net asset value per Unit of the ETF on such day. The Units of the ETF will be immediately consolidated such that the number of outstanding Units of the ETF held by each Unitholder on such day following the distribution will equal the number of Units of the ETF held by the Unitholder prior to the distribution. In the case of a non-resident Unitholder, if tax has to be withheld in respect of a distribution, the Unitholder's dealer will invoice or debit the Unitholder's account directly.
Advisor Class Units of the ETF pay higher Management Fees and, as a result, any distributions payable on the Advisor Class Units are generally expected to be less than the distributions payable on Class E Units.
Initial Issuance of Units:Pursuant to the Prospectus, 465,000 Class E Units and 50,000 Advisor Class Units will be issued at a subscription price of $10.00 per Unit.