Toronto-based Horizons Exchange Traded Funds Inc. is removing the performance fees previously applicable to the Horizons Active Global Dividend ETF (TSX:HAZ) and Horizons Active Emerging Markets Dividend ETF (TSX:HAJ), effective immediately.
Previously, a performance fee was payable by each ETF when its performance exceeded a benchmark, subject to certain conditions.
The management fees payable by each of the ETFs will remain unchanged.
Launched in July 2010, HAZ seeks long-term returns consisting of regular dividend income and modest long-term capital growth. It invests primarily in equity and equity related securities of companies with operations located anywhere in the world.
Launched in October 2012, HAJ seeks long-term returns consisting of regular dividend income and modest long-term capital growth. It invests primarily in equity and equity related securities of companies with operations in emerging market economies.
Horizons ETFs says it expects this reduction in the total fees applicable to each ETF to further enhance each fund’s ability to achieve its investment objective.