TORONTO, April 14,
2022 /CNW/ - Horizons ETFs Management (Canada) Inc. ("Horizons ETFs" or the
"Manager") will reduce the rebate on the annual
management fees of the Horizons Cash Maximizer ETF ("HSAV")
and the Horizons High Interest Savings ETF ("CASH" and
together, the "ETFs") effective the close of business today.
Beginning April 15, 2022, the
effective annual management fee for each of the ETFs will be
thirteen basis points (0.13%) plus applicable sales taxes,
following a fee rebate reduction of three basis points (0.03%).
The rebate change was made in light of the recent increase in
the overnight rate by the Bank of Canada from 0.50% to 1.00%. Horizons
ETFs anticipates that as a result of the increase of the overnight
rate, the gross yield of the ETFs, meaning the gross yield earned
on the bank deposits of the ETFs, will be 1.45%, effective today,
April 14, 2022. With an
effective annual management fee of 0.13%, HSAV and CASH will
continue to be the lowest cost ETFs amongst all the high-interest
savings ETFs currently listed in Canada+.
HSAV seeks to generate modest capital growth by investing
primarily in high-interest deposit accounts with Canadian banks.
While any decision to pay dividends or other distributions is
within the discretion of Horizons ETFs, HSAV is not currently
expected to make any regular distributions.
In February 2022, Horizons ETFs
announced a suspension of new subscriptions for HSAV after its NAV
exceeded $2 billion. More information
on this can be found here:
https://www.horizonsetfs.com/news/Press-Release/Horizons-Cash-Maximizer-ETF-Suspends-New-Subscript.
The suspension of new subscriptions for HSAV remains in effect.
Any subsequent resumption of subscriptions for HSAV will be
announced by press release and posted on the Manager's website.
CASH seeks to maximize monthly income for unitholders while
preserving capital and liquidity by investing primarily in high
interest deposit accounts with Canadian banks. The investment
objective of CASH is similar to HSAV, except unlike HSAV, CASH
seeks to pay out regular monthly distributions of income.
The rebate change on the ETFs will be effective April 15, 2022 and will remain in effect until
further notice. Horizons ETFs will announce any changes to the
rebates with a further press release.
For more information about HSAV, please visit:
www.HorizonsETFs.com/HSAV
For more information about CASH, please visit:
www.HorizonsETFs.com/CASH
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 $23 billion of assets
under management and 105 ETFs listed on major Canadian stock
exchanges.
+ based on all publicly available information as at the time
of this press release
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.
Certain statements may constitute a forward-looking
statement, including those identified by the expression "expect",
"anticipate" and similar expressions (including grammatical
variations thereof). The forward-looking statements are not
historical facts but reflect the author's current expectations
regarding future results or events. These forward-looking
statements are subject to a number of risks and uncertainties that
could cause actual results or events to differ materially from
current expectations. These and other factors should be considered
carefully and readers should not place undue reliance on such
forward-looking statements. These forward-looking statements are
made as of the date hereof and the authors do not undertake to
update any forward-looking statement that is contained herein,
whether as a result of new information, future events or otherwise,
unless required by applicable law.
HSAV uses cash accounts and does not track a traditional
benchmark but rather a compounding rate of interest paid on a cash
deposit that can change over time. Any distributions which are
received by HSAV are reflected automatically in the net asset value
(NAV) of HSAV. As a result, the shareholders of HSAV are not
expected to receive any taxable distributions.
In February 2022, HSAV
announced a suspension of all new subscriptions. During a period of
suspended subscriptions, investors should note that ETF shares of
HSAV would be expected to trade at a premium or substantial premium
to the NAV per ETF Share of HSAV. During such periods, investors
are strongly discouraged from purchasing ETF shares of HSAV on a
stock exchange. Any suspension of subscriptions or resumption of
subscriptions will be announced by press release and announced on
the Manager's website. A suspension of subscriptions, if any, will
not affect the ability of existing Shareholders to sell their ETF
Shares in the secondary market at a price reflective, or
potentially higher than, the NAV per ETF Share.
SOURCE Horizons ETFs Management (Canada) Inc.