Horizons ETFs announces proposed change to the investment objective of the Horizons Active Advantage Yield ETF

TORONTO, Feb. 28, 2013 /CNW/ - Horizons Exchange Traded Funds Inc. ("Horizons ETFs") and its affiliate AlphaPro Management Inc. (the "Manager") hereby announce that a special meeting (the "Meeting") of unitholders of the Horizons Active Advantage Yield ETF ("HAF") has been called to consider and, if advisable, pass a resolution to approve a change to the investment objective of HAF. The Special Meeting will be held in Toronto at the office of the Manager, 26 Wellington Street East, Suite 604, Toronto, Ontario on March 27, 2013 at 11:00 a.m. Toronto time.

The Manager is seeking approval from the HAF unitholders to change the investment objective of HAF so that it instead seeks to provide unitholders with: (i) a stable stream of tax-efficient monthly distributions; and (ii) the opportunity for capital appreciation through exposure to a tactical asset allocation strategy that focuses primarily on fixed income and fixed income-like securities.

The proposed change of investment objective (the "Proposal") will broaden the universe of investments to which HAF can gain exposure. The Manager believes, among other things, that the Proposal could make HAF more appealing to a broader range of potential investors.

Should the Proposal be approved and implemented, the Manager will also change the investment strategies of HAF such that:

• HAF would be able to be exposed to investments in fixed income and fixed income-like securities, including, among other securities, preferred shares;
  
  
• To gain exposure to fixed income and fixed income-like securities, HAF would be exposed primarily to (i) exchange traded funds; and (ii) investments in fixed income and fixed income-like securities;
  
  
• HAF would no longer be exposed to leverage; and
  
  
• HAF would be able to be exposed to, from time to time, derivative instruments, including futures contracts and credit default swaps, in order to manage duration, credit exposure, portfolio yield, and market risk.

Details of the proposed changes are included in a management information circular which will be delivered to unitholders of record of HAF as of February 20, 2013.

About Horizons Exchange Traded Funds Inc. (www.HorizonsETFs.com)

Horizons ETFs is an innovative financial services company offering the Horizons ETFs family of exchange-traded funds (ETFs). The Horizons ETFs family includes a broadly diversified range of investment tools with solutions for investors of all experience levels to meet their investment objectives in a variety of market conditions. With approximately $4.2 billion in assets under management and 77 ETFs listed on the Toronto Stock Exchange, the Horizons ETFs family is one of the largest in Canada. Horizons ETFs is a subsidiary of Horizons ETFs Management (Canada) Inc. and a member of the Mirae Asset Financial Group.

SOURCE: Horizons Exchange Traded Funds Inc.

Martin Fabregas, Investor Relations, [phone] or 1-866-641-5739.