HSAV approaches $1.5 billion
AUM cap for potential suspension of new subscriptions
TORONTO, Jan. 8, 2021 /CNW/ - Horizons ETFs Management
(Canada) Inc. ("Horizons
ETFs" or the "Manager") is pleased to announce that
the Horizons Cash Maximizer ETF ("HSAV" or the "ETF")
has surpassed $1 billion in assets
under management ("AUM"), as at December 31, 2020.
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 the Manager, HSAV is not currently
expected to make any regular distributions.
Launched on February 6, 2020, HSAV
surpassed the critical AUM milestone in less than one year, joining
only 59 other Canadian-listed ETFs with AUMs exceeding $1 billion as at December
31, 2020, among the nearly 850 ETFs listed in Canada.
"High-interest savings ETFs, which include HSAV, saw strong
inflows in 2020 as investors were attracted to their daily
liquidity and yield," said Steve
Hawkins, President and CEO of Horizons ETFs. "HSAV,
with a current effective management fee of
0.08% †, has the added benefit of being the
lowest-cost offering among the Canadian high-interest savings ETFs
available to investors in 2020."
As noted in HSAV's prospectus, if the ETF experiences a
significant increase in total net assets, the Manager may, in its
sole discretion and if determined to be in the best interests of
shareholders, decide to suspend subscriptions for new ETF shares if
considered necessary or desirable in order to manage potential tax
implications and/or to permit HSAV to achieve, or continue to
achieve, its investment objectives.
At this time, Horizons ETFs has determined that it will be
suspending subscriptions for new shares of HSAV when its AUM
exceeds $1.5 billion. In the
Manager's view, this suspension, if it occurs, will ensure that
HSAV will continue to achieve its investment objectives.
A period of suspended subscriptions, if any, will not affect the
ability of existing shareholders of HSAV to sell their shares in
the secondary market at a price reflective of its net asset value
per share, assuming normal course market conditions. However,
investors and potential investors should note that during a period
of suspended subscriptions the shares of HSAV are expected to trade
at a premium or even a substantial premium to its net asset value
per share. During any suspension, investors are strongly
discouraged from purchasing shares of HSAV.
Any suspension of subscriptions, or subsequent resumption of
subscriptions, will be announced by press release and posted on the
Manager's website.
Although HSAV primarily invests in bank deposit accounts, HSAV
is not covered by the Canada Deposit Insurance Corporation or any
other government deposit insurer.
For more information on HSAV, please see the prospectus.
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 currently has over $16.7 billion
of assets under management and 93 ETFs listed on major Canadian
stock exchanges.
† HSAV's Management fee of 0.18% has been
rebated by 0.10% to an effective management fee of 0.08%, until
further notice (plus applicable sales tax).
HSAV uses cash accounts and does not track a traditional
benchmark but rather a compounding rate of interest paid on the
cash deposits 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.
Commissions, management fees and applicable sales taxes all
may be associated with an investment in the ETF. The ETF is not
guaranteed, its value changes frequently and past performance may
not be repeated. The prospectus contains important detailed
information about the ETF. Please read the prospectus before
investing.
Certain statements may constitute a forward-looking
statement, including those identified by the expression "expect",
"project" 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.
SOURCE Horizons ETFs Management (Canada) Inc.