Horizons ETFs launches Canadian dollar units and merges ETFs
Horizons ETFs Management has launched Canadian dollar traded Class E units of the Horizons Enhanced Income US Equity (USD) ETF (Horizons HEA).
AlphaPro has also filed an amendment to its prospectus seeking to allow the listing of Canadian dollar traded Advisor Class units of Horizons HEA. Class E units and Advisor Class units of Horizons HEA currently trade in US dollars on the Toronto Stock Exchange under the symbols HEA.U and HEA.V, respectively.
The new Canadian dollar traded Class E units and Advisor Class units are expected to be listed under the symbols HEA and HEA.A, respectively and are expected to begin trading on the TSX on or about 15 January.
Additionally, AlphaPro, the manager and trustee of the Horizons Enhanced US Equity Income ETF (Horizons HES) and Horizons HEA, intends to merge the ETFs on a non-taxable basis. AlphaPro anticipates the execution of the merger to occur after the close of business on or about 14 March 2014.
On the merger date, the Class E unitholders and Advisor Class unitholders of Horizons HES (units of which are listed on the TSX under the symbols HES and HES.A, respectively) will have their units exchanged for Canadian dollar traded Class E units and Advisor Class units of Horizons HEA, at a ratio to be determined by the respective net asset values per unit on the merger date.
The investment objective and portfolio composition for each of the ETFs is substantially similar. The merger will allow Horizons ETFs to consolidate the management of the two ETFs and is expected to reduce the costs of operating the ETFs.
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