Toronto-based Horizons ETFs Management (Canada) Inc. and its affiliate, AlphaPro Management Inc., announced the elimination of pre-authorized cash contribution plans (PACCs) and systematic withdrawal plans (SWPs) in an attempt to reduce operating costs for certain ETFs.
The program changes are set to occur Aug. 1. Individual investment dealers can still provide their own PACCs and SWPs to clients and unitholders are not required to act, the firm says in a news release.
Horizons ETFs also announced that the distribution frequency of four ETFs are now quarterly instead of monthly to better align with the dividend frequency of the constituent holdings of each ETF.
As such, the ETFs will not be distributed monthly for July and August record dates. The first quarterly distribution will begin Sept. 29 and will be payable as of Oct. 12.
Horizons does not expect that the quarterly distribution amount per unit will be much different than the sum of the three monthly distribution rates that would have been declared in the past.
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