TORONTO, March 30, 2020 /CNW/ - Horizons ETFs
Management (Canada)
Inc. ("Horizons ETFs") is pleased to announce a 10
basis point (0.10%) rebate on the annual management fee of the
Horizons Cash Maximizer ETF ("HSAV") that will be effective
April 1, 2020 and will remain in
effect until further notice. During the rebate period, the
effective annual management fee of HSAV will be eight basis points
(0.08%) including applicable sales taxes.
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.
"The key policy rate offered by the Bank of Canada has declined by more than 1.50% since
we launched HSAV in early February of 2020. This has effectively
reduced the gross yield earned on HSAV to less than 0.75%, versus
the approximate 2.25% that HSAV was earning at time of
launch," said Steve
Hawkins, President and CEO of Horizons ETFs. "Given the
dramatic decline in the income being generated by HSAV in this low
interest rate environment, we have reduced the cost of investing in
HSAV so that unitholders can retain more of its income."
Horizons ETFs will continue to monitor the Bank of Canada overnight rate and does not anticipate
changing or eliminating the management fee rebate on HSAV until
this overnight rate changes. Horizons ETFs will announce any change
to the rebate with a further press release.
"We believe there is still real value in owning high-interest
savings account ETFs as a safe-haven investment during periods of
extreme market uncertainty, like we are currently
experiencing," said Mr. Hawkins. "With this management
fee rebate, HSAV will, for now, be the lowest-cost high interest
savings ETF in Canada, while
retaining its innovative total return structure."
About Horizons ETFs Management (Canada)
Inc. (www.HorizonsETFs.com)
Horizons ETFs Management (Canada)
Inc. is an innovative financial services company that 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 more than
$11 billion of assets under
management and 91 ETFs listed on major Canadian stock
exchanges.
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.
SOURCE Horizons ETFs Management (Canada) Inc.