Horizons Auspice Broad Commodity Index ETF To Trade On Toronto Stock Exchange
Horizons Auspice Broad Commodity Index ETF (the “ETF”) - An application has been granted for the original listing in the Industrial category of 405,000 Class E units (the “Class E Units”) and 100,000 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 Tuesday, February 26, 2013 in anticipation of the Offering closing prior to the opening of business on Wednesday, February 27, 2013. The Units will be posted for trading at the opening of business on, Wednesday, February 27, 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 February 15, 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:HBRCUSIP: 44051V 11 5Currency: CAD$
Advisor Class Units
Stock Symbol:HBR.ACUSIP: 44051V 10 7Currency: CAD$
Market Maker:BMO Nesbitt Burns 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 February 15, 2013.
Manager and Trustee:AlphaPro Management Inc.
Investment Manager:Horizons Investment Management Inc.
Fiscal Year End:December 31
Nature of Business:The ETF seeks investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavor to correspond to the performance of the Auspice Broad Commodity Excess Return Index (the “Broad Commodity Index”) hedged to the Canadian dollar. In order to achieve its investment objective, the ETF may invest in equity securities and/or other financial instruments, including derivatives, to gain exposure to the Broad Commodity Index.
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 an annual basis.
The ETF will distribute sufficient net income (including net capital gains) so that each ETF will not be liable for income tax in any given year. Such distributions, if any, are expected to be made on an annual basis. All distributions will be automatically reinvested on behalf of each Unitholder in additional Units of the applicable ETF which will immediately be consolidated with the Units of that ETF existing prior to the distribution.
Advisor Class Units of each 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, 405,000 Class E Units and 100,000 Advisor Class Units will be issued at a subscription price of $10.00 per Unit.
Julie K. Shin
Director, Listed Issuer Services
Toronto Stock Exchange
Last Edit Date:02/25/2013Date Created:02/25/2013
Last Editor:Udara GurusingheCreator:Udara Gurusinghe