TORONTO, Sept. 1 /CNW/ - BetaPro Management Inc. ("BetaPro"), manager of Horizons BetaPro NYMEX(R) Natural Gas Bull Plus ETF (the "HBP Natural Gas Bull+ ETF") and the Horizons BetaPro NYMEX(R) Natural Gas Bear Plus ETF (the "HBP Natural Gas Bear+ ETF"), has announced changes to the roll methodology for the NYMEX(R) Natural Gas futures contracts for these two exchange traded funds ("ETFs") effective September 8, 2009. The HBP Natural Gas Bull+ ETF and HBP Natural Gas Bear+ ETF each seek investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to: two times (200%) the daily performance of, or negative two times (-200%) the daily performance of, respectively, the NYMEX(R) Natural Gas futures contract for the next delivery month. These ETFs represent a liquid benchmark for investors that desire an exposure to NYMEX(R) Natural Gas futures contracts.
Futures contracts must be rolled from the specified delivery month to a subsequent delivery month before the contract requires the holder to accept delivery of a physical commodity on maturity. In order to roll, the HBP Natural Gas Bull+ ETF and HBP Natural Gas Bear+ ETF will refer to a primary futures contract and a secondary futures contract in different weighting over the period of time the roll is implemented. As contracts reach that delivery date at the end of the month, the secondary contract for a subsequent delivery month becomes the primary futures contract. Currently, these ETFs track the NYMEX(R) Natural Gas futures contract according to the following schedule:
-------------------------------------------------------------------------
Current HBP NYMEX(R) Natural Gas Bull + ETF and
Month HBP NYMEX(R) Natural Gas Bear + ETF
-------------------------------------------------------------------------
Primary Contract Secondary Contract
-------------------------------------------------------------------------
January February March
-------------------------------------------------------------------------
February March April
-------------------------------------------------------------------------
March April May
-------------------------------------------------------------------------
April May June
-------------------------------------------------------------------------
May June July
-------------------------------------------------------------------------
June July August
-------------------------------------------------------------------------
July August September
-------------------------------------------------------------------------
August September October
-------------------------------------------------------------------------
September October November
-------------------------------------------------------------------------
October November December
-------------------------------------------------------------------------
November December January
-------------------------------------------------------------------------
December January February
-------------------------------------------------------------------------
Effective September 8, 2009, the roll dates for the HBP Natural Gas Bull+
ETF and HBP Natural Gas Bear+ ETF will be from the 5th to 12th (inclusive)
trading day of each month in which a roll is made. The allocation between the
primary and secondary futures contracts during a roll for these ETFs going
forward will be as follows:
-------------------------------------------------------------------------
Trading Day(s)(1) Primary Contract Secondary Contract
-------------------------------------------------------------------------
1-4 100% 0%
-------------------------------------------------------------------------
5 87.5% 12.5%
-------------------------------------------------------------------------
6 75% 25%
-------------------------------------------------------------------------
7 62.5% 37.5%
-------------------------------------------------------------------------
8 50% 50%
-------------------------------------------------------------------------
9 37.5% 62.5%
-------------------------------------------------------------------------
10 25% 75%
-------------------------------------------------------------------------
11 12.5% 87.5%
-------------------------------------------------------------------------
12 0% 100%
-------------------------------------------------------------------------
The roll dates, as well as the allocation between the primary and secondary futures contracts, may be changed by BetaPro in its sole discretion at anytime based on liquidity for the underlying primary and secondary futures contracts as the primary futures contract's expiry approaches. BetaPro will usually post the current roll schedule at www.hbpetfs.com on an ongoing basis.
A trading day is any day on which the NYMEX is open and publishes a settlement price for the primary and, if applicable, secondary NYMEX(R) Natural Gas futures contract and on which the Toronto Stock Exchange is open and publishes closing prices.
For more information, please visit www.HBPETFs.com.
About BetaPro Management Inc. (www.HBPETFs.com)
Horizons BetaPro Exchange Traded Funds ("HBP ETFs") are managed by BetaPro Management Inc., Canada's sole provider of investment tools allowing investors to profit when the market is rising or falling, or to reduce their risk by hedging their existing market exposure. HBP ETFs offer three types of structures: Bull+/Bear+ leveraged ETFs, single ETFs, and single inverse ETFs. The HBP Bull+ ETFs and HBP Bear+ ETFs are designed to provide daily investment results, before fees and expenses, that correspond to double the daily performance, or double the inverse daily performance, respectively, of their specified underlying index or benchmark. The HBP Inverse ETFs are designed to provide daily investment results, before fees and expenses, that correspond to the one times the inverse of their specified underlying index or benchmark. The HBP Single ETFs are designed to provide investment results, before fees, expenses, distributions, brokerage commissions and other transaction costs, that endeavour to correspond to the performance of their specified underlying index.
BetaPro is a subsidiary of Jovian Capital Corporation and manages, as of August 2009, approximately $2.6 billion amongst 38 ETFs.
About Jovian Capital Corporation (www.joviancapital.com)
Jovian Capital Corporation is a publicly-traded company listed on the Toronto Stock Exchange. Jovian acquires, creates and grows financial services companies specializing in wealth and asset management. The Jovian group of companies (AlphaPro Management Inc., BetaPro Management Inc., Horizons Funds Inc., JovFunds Inc., JovFunds Management Inc., JovInvestment Management Inc., Leon Frazer & Associates Inc., MGI Financial Inc., MGI Securities Inc., MGI Securities (USA) Inc., T.E. Wealth and Felcom Data Services Inc.) manages approximately $12.5 billion of client assets ($6.5 billion in assets under management and $6.0 billion in assets under administration). Additional information is available at www.joviancapital.com and www.sedar.com.