These non-cash distributions were made payable to all unitholders of record on
Ticker Symbol | Non-Cash Distribution | Net Asset Value | Non-Cash |
HMJI | 22.27% | ||
HXU | 0.87% |
The distributions on HMJI and HXU were made in connection with tax proposals that were made this year which would no longer allow ETFs to allocate any income distributions to unitholders that redeem ETFs directly with Horizons ETFs in the primary market. As a result, HMJI and HXU each made a one-time distribution to all existing unit holders as of the
All of Horizons' BetaPro suite of ETFs have completed a reorganization (the "Reorganization") into
HMJI and HXU are the only two ETFs offered by Horizons ETFs that were required to make a distribution as part of the Reorganization. Horizons ETFs does not anticipate that HMJI and HXU will make any regular dividends or returns of capital going forward.
The non-cash distributions will be each automatically reinvested in additional units of HMJI and HXU respectively and immediately consolidated so that the number of units held by the unitholder (the outstanding units of the ETFs) and the net asset value of the ETFs will not change as a result of the non-cash distribution. These non-cash distributions will be reported to investors as taxable distributions and will increase each unitholder's adjusted cost bases for each of HMJI and HXU.
In early 2020, the tax characteristics of these distributions for 2019 tax purposes will be reported to brokers via
About
Certain statements may constitute a forward looking statement, including those identified by the expressions "anticipate", "estimate" or "expect" and similar expressions (including grammatical variations thereof) to the extent they relate to the ETFs or Horizons ETFs. The forward-looking statements are not historical facts but reflect the ETFs, the ETF's managers or Horizons ETFs 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 the ETFs' forward looking statements. These forward-looking statements are made as of the date hereof and the ETFs 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.
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