TORONTO, April 30, 2021 /CNW/ - Horizons ETFs
Management (Canada) Inc.
("Horizons ETFs") announces certain modifications to the
methodology of the Solactive Canadian Select Universe Bond Index
("SOLHBB" or the "Index"), which is the underlying
index for the Horizons Cdn Select Universe Bond ETF ("HBB"
or the "ETF"). The Index methodology was modified to
further optimize its exposure to the Canadian bond market.
SOLHBB is administered by Solactive AG to measure the
performance of the investment grade Canadian bond market
denominated in Canadian Dollars ("CAD"). HBB seeks to
replicate, to the extent possible, the performance of the Solactive
Canadian Select Universe Bond Index, net of expense. Both the
objective of the Index and the ETF remain unchanged.
A summary of the changes to SOLHBB's methodology is as
follows:
- The Index will now be calculated based upon Last Evaluated Mid
Price, instead of Last Evaluated Ask Price of the Index
components;
- Clarification that the Index is composed only of bonds where
the country of issuance is Canada,
the, country of issuing entity is Canada, and the denomination is in CAD;
- An increase of the Minimum Amount Outstanding for government
bonds to CAD $100 million;
- An addition of DBRS to the ratings agency list;
- Simplification of the capping and bucketing of issues, reducing
to the top 85% of corporate bonds (by Market Value) to be included
in the Index;
- Simplification of the capping and bucketing of issues, reducing
to the top 99% of government bonds (by Market Value) to be included
in the Index;
- Specification that the weighting of the Index components will
now be based upon their respective Market Values; and
- Clarification that bonds components (Government or Corporate)
are only removed from the index if they no longer meet the minimum
rating criteria (>BBB-), or no longer meet the Index inclusion
requirements.
The Index changes are effective at the close of business
April 30th. HBB will
reflect these changes simultaneously. HBB's name, ticker and
management fee remain the same.
A complete copy of the updated Index methodology for SOLHBB,
including the defined terms noted above, can be found at
www.HorizonsETFs.com or www.Solactive.com.
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 has approximately $18 billion of
assets under management and 92 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.
Certain statements may constitute a forward-looking
statement, including those identified by the expression "expect"
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.