Horizons ETFs have announced the elimination of its offered pre-authorized cash contribution plans (PACCs) and systematic withdrawal plans (SWPs) effective Aug. 1.
The plans were eliminated in line with efforts to reduce operating costs for certain ETFs. Individual dealers may continue to offer their own PACC and SWP programs to their clients; unitholders are not required to take any action in connection with the termination of the plans.
Horizons ETFs has also changed the distribution frequency for four of its ETFs:
|Horizons Active Emerging Markets Dividend ETF
|Horizons Active Cdn Dividend ETF
|Horizons Active US Dividend ETF
|Horizons Active Global Dividend ETF
To more accurately align with the dividend frequency of each fund’s constituent holdings, monthly distributions with July and August 2017 record dates will not be done for the four ETFs. The first quarterly distribution will have a record date of Sept. 29, and will be payable on or about Oct. 12. Each subsequent quarter’s distributions will follow a similar schedule.
The quarterly distribution amount per unit is not anticipated to differ significantly from the sum of the three monthly distribution rates that would previously have been declared.
Neither the elimination of the PACCs and SWPs nor the announced distribution frequency changes will impact the ETFs’ distribution reinvestment plans (DRIPs). Unitholders will still be able to continue to participate in the DRIP of any eligible ETF.
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