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Horizons ETFs to change investment objective of Active Yield Matched Duration ETF

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The investment objective of the Horizons Active Yield Matched Duration ETF is to change on or about 6 October 2014.

As a consequence of December 2013 amendments to the Income Tax Act (Canada), the ETF is no longer able to distribute gains under a forward contract as capital gains for tax purposes. 
 
This impacts the ability of the ETF to seek to provide tax-efficient monthly distributions, and the investment objectives are being changed accordingly.
 
The current investment objectives of the ETF are to seek to provide unitholders with: (i) a stable stream of tax-efficient monthly distributions; and (ii) the opportunity for capital appreciation through a tactical asset allocation strategy that includes managing the duration and yield of its exposure to fixed income and fixed income-like securities according to the prevailing interest rate environment.
 
The new investment objectives of the ETF will not include a reference to tax-efficiency of the monthly distributions. 
 
The new investment objectives of the ETF will be to seek to provide unitholders with: (i) a stable stream of monthly distributions; and (ii) the opportunity for capital appreciation through a tactical asset allocation strategy that includes managing the duration and yield of its exposure to fixed income and fixed income-like securities according to the prevailing interest rate environment.
 
AlphaPro, the manager of the ETF, has received an exemption from the applicable securities regulators from the requirement to obtain unitholder approval of this change to the investment objectives of the ETF.

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