Horizons ETFs Management and its affiliate AlphaPro Management Inc. have announced that they will be eliminating the pre-authorized cash contribution plans and the systematic withdrawal plans offered by Horizons ETFs as of August 1. The move is aimed at reducing operating costs for certain exchange traded funds.

In an announcement issued July 7, the companies stated that 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 PACCs and SWPs.

Distribution frequency

Horizons ETFs also announced that it is amending the distribution frequency for four ETFs from monthly to quarterly. There will be no monthly distributions on these four ETFs with July and August 2017 record dates. The first quarterly distribution will have a record date of September 29, 2017, and will be payable on or about October 12, 2017. A similar schedule will follow for each subsequent quarter.

“It is not anticipated that the quarterly distribution amount per unit will be significantly different from the sum of the three monthly distribution rates that previously would have been declared,” says Horizons.  The affected ETFs are as follows: Horizons Active Emerging Markets Dividend ETF; Horizons Active Cdn Dividend ETF; Horizons Active US Dividend ETF and Horizons Active Global Dividend ETF.

Distribution reinvestment plans

The companies underlined that “neither the elimination of the PACCs and SWPs, nor the changes to these distribution frequencies will impact the ETFs' distribution reinvestment plans ("DRIPs"). Unitholders may continue to participate in the DRIP of any eligible ETF.”