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Canadian dollars

Horizons ETFs proposes change to S&P 500 Index (CAD Hedged) ETF


Horizons Exchange Traded Funds and its affiliate Horizons ETFs Management (Canada) have called a special meeting of unitholders of the Horizons S&P 500 Index (CAD Hedged) ETF (HXS) to consider, and if advisable, pass a resolution to approve a change to the investment objective of HXS. 

The special meeting will be held in Toronto on 28 February 2013 at 11:30 a.m. Toronto time.

The manager is seeking approval to change the investment objective of HXS so that it seeks to replicate, to the extent possible, the performance of the S&P 500 Index (Total Return), net of expenses. Currently, HXS seeks to replicate, to the extent possible, the performance of the S&P 500 Canadian Dollar Hedged Index (Total Return), net of expenses.

The manager believes that this change of investment objective will be in the best interest of Horizons HXS and its unitholders, as the S&P 500 Index is a more widely recognised and followed benchmark than the S&P 500 Canadian Dollar Hedged Index.

“With the Canadian and US dollars at or near parity, clients and potential investors have requested an unhedged HXS,” says Howard Atkinson, chief executive of Horizons ETFs. “We believe removing the currency hedge will increase the appeal of HXS in the marketplace.

If the proposed change to the investment objective is approved by unitholders of HXS, the manager expects to change the name of HXS to “Horizons S&P 500 Index ETF” and also to offer units of HXS in US dollars.

Details of the proposed change will be outlined in a management information circular which will be delivered to unitholders of record of HXS as of 18 January 2013.

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