TORONTO, July 3, 2020 /CNW/ - Horizons ETFs
Management (Canada) Inc.
("Horizons ETFs" or the "Manager") held special
meetings of the shareholders of the BetaPro Crude Oil Daily Bull
ETF ("HOU") and the BetaPro Crude Oil -1x Daily Bear ETF
("HOD" and together, "the ETFs"), on July 2, 2020, during which shareholders of the
ETFs approved all matters relating to the proposed changes to the
investment objectives of the ETFs previously announced by the
Manager on May 14, 2020, and further
described in an information circular that was made available to
shareholders.
The new investment objectives change the underlying index used
by the ETFs and allow adjustment of the leverage ratio employed by
the ETFs to provide up to two times positive (HOU) and up to two
times inverse (HOD), the daily performance of the exposure to the
Horizons Crude Oil Rolling Futures Index (the "New Oil
Index"). The New Oil Index is a proprietary index owned and
operated by Horizons ETFs that endeavours to provide exposure to as
close to the front month light sweet crude oil futures contract as
is deemed reasonable by the Manager, based on the current market
conditions for crude oil futures contracts.
Additionally, Horizons ETFs will change the names of the ETFs to
the BetaPro Crude Oil Leveraged Daily Bull ETF (HOU) and the
BetaPro Crude Oil Inverse Leveraged Daily Bear ETF (HOD),
respectively.
The Manager anticipates that the changes to the investment
objectives and names of the ETFs will take effect at the close of
business on or about Thursday, July 9,
2020, subject to the receipt of all necessary regulatory and
third party approvals.
Leverage Ratio
Under the new investment objectives, the Manager anticipates,
under normal market conditions, managing the leverage ratio to be
as close to two times (200%) as practicable for both HOU and HOD.
However, the Manager may, at its sole discretion, change the
leverage ratio based on its assessment of the current market
conditions for crude oil futures contracts and negotiations with
the ETF's counterparties at that time. The leverage ratio employed
by the ETFs will be posted on the Manager's website at
http://www.HorizonsETFs.com and any changes to the leverage ratio
will be disclosed by way of public announcement.
Currently, the ETFs are not employing leverage (i.e. the
leverage ratio is 1.0) and there are no immediate plans to change
the leverage ratio to more than one (1.0).
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 $13 billion of assets
under management and 92 ETFs listed on major Canadian stock
exchanges.
SOURCE Horizons ETFs Management (Canada) Inc.