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28/07/2009 Unitholders Approve Change of Investment Objectives for Horizons BetaPro DJ-AIGSM Agricultural Grains Bull+/Bear+ ETFs and Horizons BetaPro S&P/TSX Global Mining™ Bull+/Bear+ ETFs

BetaPro Management Inc. (“BetaPro”), the manager of the Horizons BetaPro DJ-AIGSM Agricultural Grains Bull Plus ETF, Horizons BetaPro DJ-AIGSM Agricultural Grains Bear …

 

Plus ETF, Horizons BetaPro S&P/TSX Global Mining™ Bull Plus ETF, and Horizons BetaPro S&P/TSX Global Mining™ Bear Plus ETF (the “Agricultural and Mining ETFs”), held special meetings of the unitholders of each of the Agricultural and Mining ETFs (collectively, “Unitholders”) on July 24, 2009, to consider changing the underlying index of the Agricultural and Mining ETFs. At these meetings, Unitholders of the Agricultural and Mining ETFs each approved changing the underlying index of each Agricultural and Mining ETF. Subject to regulatory approval, the changes will be made effective Monday, August 24, 2009.

 

Currently, the underlying index of the Horizons BetaPro DJ-AIGSM Agricultural Grains Bull Plus ETF and Horizons BetaPro DJ-AIGSM Agricultural Grains Bear Plus ETF (the “HBP Agri ETFs”) is the Dow Jones-UBS Grains SubindexSM (formerly called Dow Jones-AIG Grains Sub-IndexSM), and the underlying index of the Horizons BetaPro S&P/TSX Global Mining™ Bull Plus ETF and Horizons BetaPro S&P/TSX Global Mining™ Bear Plus ETF (the “HBP Mining ETFs”) is the S&P/TSX Global Mining Index™.

HBP Agri ETFs
Subject to regulatory approval, effective August 24, 2009, the investment objectives of the HBP Agri ETFs will be amended so that the Dow Jones-UBS Grains SubindexSM is replaced with the S&P Agribusiness North America Index™. The names of the Horizons BetaPro DJ-AIGSM Agricultural Grains Bull Plus ETF and Horizons BetaPro DJ-AIGSM Agricultural Grains Bear Plus ETF will change to reflect the new underlying index and will continue to trade under the TSX tickers HAU and HAD, respectively.

The S&P Agribusiness North America Index™ is designed to provide liquid exposure to the upstream and downstream supply chain of the agribusiness sector. The S&P Agribusiness North America Index includes some of the largest publicly-traded agribusiness companies trading on the U.S and Canadian exchanges. To ensure investability, constituents must have a developed market listing and meet minimum market capitalization and liquidity requirements. The S&P Agribusiness North America Index has a daily market close that is at the same 4:00 p.m. Eastern Time as the daily net asset value calculation of these HBP Agri ETFs, which is expected to be more useful to investors and foster greater liquidity By moving to an equity based agricultural index, BetaPro believes the HBP Agri ETFs may benefit from improved market liquidity because public trading of the equity issuers in the index and exchange will close at the same time.

 

HBP Mining ETFs
Subject to regulatory approval, effective August 24, 2009, the investment objectives of the HBP Mining ETFs will be amended so that the S&P/TSX Global Mining Index™ is replaced with the S&P/TSX Global Base Metals Index™. The names of the Horizons BetaPro S&P/TSX Global Mining™ Bull Plus ETF and Horizons BetaPro S&P/TSX Global Mining™ Bear Plus ETF will change to reflect the new underlying index and will continue to trade under the TSX tickers HMU and HMD, respectively.
The S&P/TSX Global Base Metals Index™ is a subset of the S&P/TSX Global Mining Index™. The S&P/TSX Global Base Metals Index™ is designed to provide an investable index of global securities involved in the production or extraction of base metals excluding gold. To ensure investability, constituents must meet minimum market capitalization and liquidity requirements.

The S&P Index Committee, whose members include Standard & Poor’s economists and index analysts, maintains the S&P Agribusiness North America Index™ and S&P/TSX Global Base Metals Index™.

By moving to an exclusive base metals index, investors will receive a pure play in the sector, compared to the S&P/TSX Global Mining IndexTM which included a significant weighting to gold producers. In addition, the S&P/TSX Global Base Metals Index™ has a comparatively smaller underlying basket than the S&P/TSX Global Mining Index,TM which BetaPro believes may also result in improved market liquidity.
“We are pleased that unitholders approved changing the underlying indexes of these ETFs to S&P Agribusiness North America Index™ and S&P/TSX Global Base Metals Index,™” said Howard Atkinson, President of BetaPro. “The proposed changes are in response to market demand and should, in both cases, significantly improve the market liquidity of these ETFs.”

 

Source: ETFWorld.com – Horizons BetaPro Exchange Traded Funds (“HBP ETFs”)

 


 

 


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