Horizons Active Cdn Municipal Bond ETF - (HMP, HMP.A:TSX) - InterimReport | June30,2016
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Interim Report | June 30, 2016
Horizons Active Cdn Municipal Bond ETF
(HMP, HMP.A:TSX)
Innovation is our capital. Make it yours.
www.HorizonsETFs.com
ALPHA BENCHMARK BETAPROContents
MANAGEMENT REPORT OF FUND PERFORMANCE
Management Discussion of Fund Performance. . . . . . . . . . . . . . . . . . . . . . 1
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Past Performance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Summary of Investment Portfolio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
MANAGER’S RESPONSIBILITY FOR FINANCIAL REPORTING. . . . . . . . . . . . 13
FINANCIAL STATEMENTS
Statements of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Statement of Comprehensive Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Statement of Changes in Financial Position. . . . . . . . . . . . . . . . . . . . . . . . 16
Statement of Cash Flows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Schedule of Investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Letter from the Co-CEO: So far, 2016 has been a road to recovery for North American investors, as equity markets continue to bounce back from the lows of late January. In fact, the Canadian equity market, up more than 8% year-to-date has been one of the best-performing developed equity markets in the world. Additionally, we have seen the price of crude oil stabilize which we believe has been a leading contributor to the recovery and strengthening of the Canadian dollar relative to the U.S. dollar, up approximately 7% since the beginning of 2016. Overall, the first half of the year has been very successful for the North American ETF industry, with U.S. assets at US$2.2 trillion and Canadian ETF assets surpassing the CAD$100 billion mark in May. Equities and fixed income ETFs continue to make up the largest inflows for both Canada and the U.S. For Horizons ETFs, in particular, this has been a year of new milestones. In April, we surpassed more than $6 billion in assets under management and have continued to watch our active and benchmark lineup of ETFs grow. In fact, the Horizons Cdn High Dividend Index ETF (“HXH”) has been one of the largest launches on the Canadian side of the border, acquiring more than $100 million in assets within its first week of launch. With the regulatory landscape in North America, particularly Canada, shifting towards fee-based transparency, and fewer tax efficient products available to the retail investor, we’ve focused on expanding our line-up of Total Return Index (TRI) ETFs. This includes the launch of HXH and the Horizons Nasdaq-100® Index ETF (“HXQ”), and lowering the cost of our flagship TRI ETFs like the Horizons S&P 500® Index ETF (“HXS”), reducing its management fee to 0.10% from 0.15%. We also launched the Horizons China High Dividend Yield Index ETF (“HCN”), the first benchmark ETF to provide Canadian investors with exposure to the Hang Seng High Dividend Yield Index. Looking to the remainder of 2016, it will be an interesting time for global markets. Many investors are watching every Federal Open Market Committee (FOMC) meeting closely, wondering whether or not the U.S. is in fact in a strong enough position economically to take on another rate hike. As well, the outcome of the June 23 referendum in the United Kingdom to leave the European Union could have far reaching implications in the markets, both locally and abroad, for the months and years to come. At Horizons ETFs we try and remain agnostic on the direction of the markets, however, we do think it’s fair to say that investors can no longer rely on easy returns. Investors require more creative solutions that take advantage of volatility, such as covered call and alternative asset strategies. Knowing investors shouldn’t rely on a single strategy for success, we believe that our diverse suite of ETF solutions provides investors with the tools they need for handling any of the market conditions that 2016 holds on the horizon. We remain proud to be a partner in your investment process. For more information on our strategies, please visit our website at www.horizonsetfs.com where we offer a range of resources designed to help you become a skilled ETF investor. Wishing you the best for the remainder of 2016, Steven J. Hawkins, President & Co-CEO Horizons ETFs Management (Canada) Inc.
Horizons Active Cdn Municipal Bond ETF
MANAGEMENT REPORT OF FUND PERFORMANCE
This interim management report of fund performance for Horizons Active Cdn Municipal Bond ETF (“Horizons HMP” or
the “ETF”) contains financial highlights and is included with the unaudited interim financial statements for the investment
fund. You may request a copy of the ETF’s unaudited interim or audited annual financial statements, interim or annual
management report of fund performance, current proxy voting policies and procedures, proxy voting disclosure record,
or quarterly portfolio disclosures, at no cost, from the ETF’s manager, AlphaPro Management Inc. (“AlphaPro” or the “Man-
ager”), by calling toll free 1-866-641-5739, or locally (416) 933-5745, by writing to us at: 26 Wellington Street East, Suite
700, Toronto ON, M5E 1S2, or by visiting our website at www.horizonsetfs.com or SEDAR at www.sedar.com.
This document may contain forward-looking statements relating to anticipated future events, results, circumstances, per-
formance, or expectations that are not historical facts but instead represent our beliefs regarding future events. By their
nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties.
There is significant risk that predictions and other forward-looking statements will not prove to be accurate. We caution
readers of this document not to place undue reliance on our forward-looking statements as a number of factors could
cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or
intentions expressed or implied in the forward-looking statements.
Actual results may differ materially from management expectations as projected in such forward-looking statements for
a variety of reasons, including but not limited to market and general economic conditions, interest rates, regulatory and
statutory developments, and the effects of competition in the geographic and business areas in which the ETF may invest
and the risks detailed from time to time in the ETF’s prospectus. New risk factors emerge from time to time and it is not
possible for management to predict all such risk factors. We caution that the foregoing list of factors is not exhaustive,
and that when relying on forward-looking statements to make decisions with respect to investing in the ETF, investors
and others should carefully consider these factors, as well as other uncertainties and potential events, and the inherent
uncertainty of forward-looking statements. Due to the potential impact of these factors, the Manager does not under-
take, and specifically disclaims, any intention or obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, unless required by applicable law.
Management Discussion of Fund Performance
Investment Objective and Strategies
The investment objective of Horizons HMP is to seek to provide unitholders with a high level of income by investing pri-
marily in a portfolio of Canadian municipal bonds denominated in Canadian dollars.
To achieve Horizons HMP’s investment objective, the ETF’s portfolio sub-advisor, Fiera Capital Corporation (“Fiera” or the
“Sub-Advisor”), uses in-depth credit analysis and other fundamental research to select fixed income securities for Hori-
zons HMP’s investment portfolio. Horizons HMP primarily invests in a portfolio of Canadian municipal bonds denominat-
ed in Canadian dollars and the ETF will be substantially invested under normal conditions.
Municipal bonds, sometimes referred to as “munis,” are debt securities generally issued by cities, municipalities or mu-
nicipal finance authorities to finance local capital expenditures such as the construction of bridges, highways, airports or
schools. Issuers of municipal bonds may or may not be rated by a bond rating agency. The proportion of municipal bonds
issued by unrated issuers in the ETF’s portfolio will not exceed 75% of the net assets of Horizons HMP.
The Sub-Advisor seeks diversification by issuer, and some diversification by geographic region, but the portfolio will gen-
erally be weighted more heavily towards Québec municipal bonds due to the predominance of Québec based issuers in
the Canadian municipal bond market. A substantial number of municipal issuers, particularly in Québec, are not rated by
any bond rating agency.
1Horizons Active Cdn Municipal Bond ETF
Management Discussion of Fund Performance (continued)
In order to manage the liquidity of the portfolio, Horizons HMP will generally invest between 10% and 20% of its net
assets in cash and cash equivalents, Canadian provincial government bonds and/or bonds issued by Canadian federal
government agencies.
Please refer to the ETF’s most recent prospectus for a complete description of Horizons HMP’s investment restrictions.
Risk
The Manager, as a summary for existing investors, is providing the list below of the risks to which an investment in the ETF
may be subject. Prospective investors should read the ETF’s most recent prospectus and consider the full descrip-
tion of the risks contained therein before purchasing units.
The risks to which an investment in the ETF is subject are listed below and have not changed from the list of risks found
in the ETF’s most recent prospectus. A full description of each risk listed below may also be found in the most recent
prospectus. The most recent prospectus is available at www.horizonsetfs.com or from www.sedar.com, or by contacting
AlphaPro Management Inc. directly via the contact information on the back page of this document.
• Stock market risk • Market for units
• Specific issuer risk • Redemption price
• Legal and regulatory risk • Net asset value fluctuation
• Exchange traded funds risk • Limited operating history
• Reliance on historical data risk • Restrictions on certain unitholders
• Corresponding net asset value risk • Highly volatile markets
• Designated broker/dealer risk • Multi-class risk
• Cease trading of securities risk • No guaranteed return
• Exchange risk • Interest rate risk
• Early closing risk • Credit risk
• No assurance of meeting investment objective • Income trust investment risk
• Tax risk • High yield bond risk and risk of other lower
• Securities lending, repurchase and rated investments
reverse repurchase transaction risk • Call risk
• Loss of limited liability • Risk of difference between quoted and
• Reliance on key personnel actionable market price
• Distributions risk • Commodity price volatility risk
• Conflicts of interest • Liquidity risk
• No ownership interest • Municipal bond risk
Results of Operations
For the six-month period ended June 30, 2016, the Class E units and Advisor Class units of the ETF returned 1.03% and
0.76%, respectively, when including distributions paid to unitholders.
General Review
The S&P Canada Provincial & Municipal Bond Index (the “Index”) returned 4.59% for the six-month period ended June 30,
2016. The Index is a broad, comprehensive, market value-weighted index designed to measure the performance of Cana-
2 dian dollar-denominated investment grade government-related bonds in provincial and municipal markets.Horizons Active Cdn Municipal Bond ETF
Management Discussion of Fund Performance (continued)
The Canadian bond market opened the year strongly with the 10-year Government of Canada bond yield briefly touching
an all-time low yield of 0.91% in mid-February, before moving back to finish the first quarter at 1.23%. The strong open-
ing was driven by continued softness in commodity prices and a weaker global outlook, led by slower growth in China
and deflationary risks in Europe. Markets only began to recover as policy makers stepped up with renewed stimulative
measures. The European Central Bank (ECB) pushed its policy rates further into negative territory and expanded its quan-
titative easing program to include purchases of corporate debt. The Bank of China cut bank reserve requirements to spur
lending. Oil prices also found a floor after Saudi Arabia and Russia announced they would cap production levels.
The second quarter was also strong for the Canadian bond market as both government and corporate bonds performed
well. Much of the strength came late in the quarter when the ‘Leave’ side won a surprising victory in the U.K. referendum
on continued European Union membership (“Brexit”). Global bond markets rallied on the result, led by the U.K. and other
European sovereign bonds. Following the vote the German 10-year Bund yield fell into negative territory for the first time,
joining Switzerland and Japan with this extraordinary distinction.
Prior to the Brexit vote, North American bond markets had been somewhat range bound as investors weighed the
odds of a possible rate hike by the U.S. Federal Reserve (the “Fed”) against mixed economic signals. In particular, U.S. job
growth appeared to slow in April and May while other indicators pointed to a moderate bounce in second quarter GDP
growth. In Canada, the recovery in oil prices towards $50/barrel provided some stability. The Brexit result immediately
ended this debate and took the odds of near term rate action by the Fed off the table. By the end of the second quarter,
the yield on the Canada five year bond was just 0.57%, down 11 basis points from the end of March and 16 basis points
for the year to date.
Sector performance was strong since the beginning of the year. Investors looking for safer but higher yields favored pro-
vincial and municipal bonds which tightened sectors spreads. Provincial bonds were the best performers and municipal
and corporate bonds also outperformed federal bonds. Even with the Brexit vote in June, the average spread on corpo-
rate bonds narrowed by 10 basis points versus similarly dated Government of Canada bonds. Energy related issuers were
among the best performers since the beginning of the year as firming oil prices provided support to these issuers. Other
sectors also did well as investor demand picked up in the face of moderating yields.
Portfolio Review
The ETF is still overweight rated and non-rated municipal bonds in the province of Quebec with a large allocation to
this segment. Fiera continues to see much value in this segment taking into account the fundamentals and large li-
quidity premiums. This is due to the large carry over other municipalities in Canada and over the Quebec Government
yield curve.
The ETF participated in multiple new issues where we were able to buy at attractive levels and select good municipalities
according to Fiera’s credit process. As the second quarter went by, municipal spreads tightened, but widened again fol-
lowing the Brexit event, to finally remain unchanged on the quarter. The ETF seized this opportunity to buy at attractive
levels. Fiera expects the municipal bond sector to outperform the provincial bond sector over the next year as it offers an
attractive carry.
Outlook
So far this year, the only constant has been change. Early in the year markets were mesmerized by oil as it plunged toward
multi-decade lows, only to reverse as drilling activity ceased and prices recovered. This was followed by an apparent
set back in the Fed’s march to higher rates as U.S. job growth mysteriously slowed. Now Brexit adds to these uncertain-
ties. The ramifications of the U.K.’s exit from the European Union will have the biggest direct impact on the U.K. and its
European partners; however it compounds the already sluggish outlook for global expansion and will dampen policy
makers’ appetite for pulling back on already generous stimulus measures. Adding to this uncertainty is the upcoming U.S.
Presidential campaign and the Fed’s typical hesitancy to impact U.S. monetary policy leading up to elections.
3Horizons Active Cdn Municipal Bond ETF
Management Discussion of Fund Performance (continued)
Under these circumstances Fiera finds it difficult to make a definitive statement on the direction of bond yields in the
months ahead. It is likely the irresistible pull of negative yields in many developed economies and longer term defla-
tionary trends will continue to keep yields at levels that our text books tell us are not possible. Given this, we expect to
manage duration strategy close to benchmark until we have greater clarity on these events and prefer to direct our risk
towards harvesting attractive credit and liquidity premiums.
In this low yield environment, yield enhancing strategies should continue to do well. The municipal bond market should
benefit from this environment as it offers an attractive carry and interesting risk-reward compared to the corporate bond
sector. Finally, we are still managing the strategy with a diversified laddered approach, which translates into a higher
yielding strategy along with a well-diversified portfolio.
Other Operating Items and Changes in Net Assets Attributable to Holders of Redeemable Units
For the six-month period ended June 30, 2016, the ETF generated gross comprehensive income (loss) from investments
and derivatives of $1,051,552. The period ended June 30, 2016 is the first full interim reporting period for the ETF, there-
fore there are no 2015 numbers with which to compare the 2016 operating items. The ETF paid management, operating
and transaction expenses of $206,456 of which $41,182 was either paid or absorbed by the Manager on behalf of the
ETF. The waiving and/or absorption of such fees and/or expenses by the Manager may be terminated at any time, or
continued indefinitely, at the discretion of the Manager.
The ETF distributed $914,730 to Class E unitholders and $4,440 to Advisor Class unitholders during the period.
Unitholder Activity
An “ETF” is a stock exchange listed, open-ended, continuously offered fund. All orders to purchase units directly from the
ETF must be placed by designated brokers and/or underwriters. On any trading day, a designated broker or an under-
writer may place a subscription order for a prescribed number of units (“PNU”) or integral multiple PNU. The ETF reserves
the absolute right to reject any subscription order placed by a designated broker and/or an underwriter. No fees will be
payable by the ETF to a designated broker or an underwriter in connection with the issuance of units. On the issuance of
units, the Manager may, at its discretion, charge an administrative fee to an underwriter or designated broker to offset
any expenses incurred in issuing the units.
All unitholders of the ETF may exchange the applicable PNU (or an integral multiple thereof ) of the ETF on any trading
day for a prescribed basket of securities (as determined by the investment manager) and/or cash, subject to the require-
ment that a minimum PNU be exchanged. The Manager may, in its complete discretion, pay exchange proceeds consist-
ing of cash only in an amount equal to the net asset value of the applicable PNU of the ETF next determined following the
receipt of the exchange request. The Manager will, upon receipt of the exchange request, advise the unitholder submit-
ting the request as to whether cash and/or a basket of securities will be delivered to satisfy the request.
Investors are able to trade units of the ETF in the same way as other securities traded on the Toronto Stock Exchange
(“TSX”), including by using market orders and limit orders. An investor may buy or sell units of the ETF on the TSX only
through a registered broker or dealer in the province or territory where the investor resides. Investors may incur custom-
ary brokerage commissions when buying or selling units.
Presentation
The attached financial statements have been prepared in accordance with International Financial Reporting Standards
(“IFRS”). Any mention of total net assets, net assets, net asset value or increase (decrease) in net assets in the financial
statements and/or management report of fund performance is referring to net assets or increase (decrease) in net assets
attributable to holders of redeemable units as reported under IFRS.
4Horizons Active Cdn Municipal Bond ETF
Management Discussion of Fund Performance (continued)
Recent Developments
There are no recent industry, management or ETF related developments that are pertinent to the present and future of
the ETF.
Related Party Transactions
Certain services have been provided to the ETF by related parties and those relationships are described below.
Manager, Trustee and Investment Manager
The manager and trustee of the ETF is AlphaPro Management Inc., 26 Wellington Street East, Suite 700, Toronto, Ontario,
M5E 1S2, a corporation incorporated under the laws of Ontario specializing in actively managed ETFs. AlphaPro is a
subsidiary of Horizons ETFs Management (Canada) Inc., which also serves as the ETF’s investment manager (“Horizons
Management” or the “Investment Manager”), and both entities are members of the Mirae Asset Financial Group. If the ETF
invests in the Horizons Management ETFs, Horizons Management may receive management fees in respect of the ETF’s
assets invested in such Horizons Management ETFs. The offices of the Manager and Investment Manager are the same.
Other Related Parties
An affiliate of National Bank of Canada (“NBC”) and National Bank Financial Inc. (“NBF”) holds an indirect minority interest
in the Manager. NBF acts or may act as a designated broker, an underwriter and/or a registered trader (market maker).
These relationships may create actual or perceived conflicts of interest which investors should consider in relation to an
investment in the ETF. In particular, by virtue of these relationships, NBF may profit from the sale and trading of the ETF’s
units. NBF, as market maker of the ETF in the secondary market, may therefore have economic interests which differ from
and may be adverse to those of unitholders.
Fiera, the sub-advisor of the ETF, is an affiliate of NBF and, as stated above, an affiliate of NBF holds an indirect minority
interest in the Manager. As a result, Fiera may be considered to be an associate of the Manager.
NBF’s potential roles as a designated broker and a dealer of the ETF is not as an underwriter of the ETF in connection with
the primary distribution of units under the ETF’s prospectus. NBF was not involved in the preparation of, nor did it per-
form any review of, the contents of the ETF’s prospectus. NBF and its affiliates may, at present or in the future, engage in
business with the ETF, the issuers of securities making up the investment portfolio of the ETF, or with the Manager or any
funds sponsored by the Manager or its affiliates, including by making loans, executing brokerage transactions, entering
into derivative transactions or providing advisory or agency services. In addition, the relationship between NBF and its af-
filiates, and the Manager and its affiliates may extend to other activities, such as being part of a distribution syndicate for
other funds sponsored by the Manager or its affiliates.
The ETF, in its course of normal business in seeking to achieve its investment objective, may enter into portfolio transac-
tions that involve an investment in securities of an issuer that is a related party to the Manager. The Manager is permitted
to execute these transactions without seeking advance approval from the ETF’s Independent Review Committee (“IRC”),
provided the Manager complies with the predetermined list of requirements agreed upon with the IRC.
For the period ended June 30, 2016, the ETF did not make any payments to NBF and/or its affiliates in broker commissions
on portfolio transactions.
5Horizons Active Cdn Municipal Bond ETF
Financial Highlights
The following tables show selected key financial information about the ETF and are intended to help you understand the
ETF’s financial performance since it effectively began operations on August 12, 2015. This information is derived from the
ETF’s audited annual financial statements and the current unaudited interim financial statements. Please see the front
page for information on how you may obtain the ETF’s annual or interim financial statements.
The ETF’s Net Assets per Unit
Class E
Period 2016 2015
Net assets, beginning of period (1) $ 9.98 10.00
Increase from operations:
Total revenue 0.13 0.09
Total expenses (0.02) (0.02)
Realized losses for the period (0.03) (0.01)
Unrealized gains for the period 0.04 0.01
Total increase from operations (2)
0.12 0.07
Distributions:
From net investment income (excluding dividends) (0.12) (0.05)
From return of capital – (0.01)
Total distributions (3)
(0.12) (0.06)
Net assets, end of period (4) $ 9.97 9.98
6Horizons Active Cdn Municipal Bond ETF
Financial Highlights (continued)
Advisor Class
Period 2016 2015
Net assets, beginning of period (1) $ 9.98 10.00
Increase from operations:
Total revenue 0.13 0.09
Total expenses (0.05) (0.04)
Realized losses for the period (0.03) (0.01)
Unrealized gains for the period 0.02 0.02
Total increase from operations (2)
0.07 0.06
Distributions:
From net investment income (excluding dividends) (0.09) (0.04)
Total distributions (3)
(0.09) (0.04)
Net assets, end of period (4) $ 9.97 9.98
1. This information is derived from the ETF’s unaudited interim financial statements as at June 30, 2016 and the audited annual financial statements as at December 31, 2015. Class E units and Advisor
Class units of the ETF have an initial net asset value of $10.00 as at August 12, 2015. Information is presented in accordance with IFRS.
2. Net assets per unit and distributions are based on the actual number of units outstanding at the relevant time. The increase (decrease) from operations is based on the weighted average number of
units outstanding over the financial period.
3. Income, dividend and/or return of capital distributions, if any, are paid in cash, reinvested in additional units of the ETF, or both. Capital gains distributions, if any, may or may not be paid in cash. Non-
cash capital gains distributions are reinvested in additional units of the ETF and subsequently consolidated. They are reported as taxable distributions and increase each unitholder’s adjusted cost base
for their units. Neither the number of units held by the unitholder, nor the net asset per unit of the ETF change as a result of any non-cash capital gains distributions. Distributions classified as return of
capital, if any, decrease each unitholder’s adjusted cost base for their units. The characteristics of distributions, if any, are determined subsequent to the end of the ETF’s tax year. Until such time, distribu-
tions are classified as from net investment income (excluding dividends) for reporting purposes.
4. The Financial Highlights are not intended to act as a continuity of the opening and closing net assets per unit.
7Horizons Active Cdn Municipal Bond ETF
Financial Highlights (continued)
Ratios and Supplemental Data
Class E
Period (1) 2016 2015
Total net asset value (000’s) $ 107,425 36,862
Number of units outstanding (000’s) 10,778 3,693
Management expense ratio 0.43%
(2)
0.42%
Management expense ratio before
waivers and absorptions (3) 0.54% 1.11%
Trading expense ratio (4) 0.01% 0.02%
Portfolio turnover rate (5) 125.82% 75.00%
Net asset value per unit, end of period $ 9.97 9.98
Closing market price $ 10.00 10.01
Advisor Class
Period (1) 2016 2015
Total net asset value (000’s) $ 498 499
Number of units outstanding (000’s) 50 50
Management expense ratio 0.99%
(2)
0.99%
Management expense ratio before
waivers and absorptions (3) 1.10% 1.67%
Trading expense ratio (4) 0.01% 0.02%
Portfolio turnover rate (5) 125.82% 75.00%
Net asset value per unit, end of period $ 9.97 9.98
Closing market price $ 9.99 10.01
1. This information is provided as at June 30, 2016 and December 31, 2015. Information is presented in accordance with IFRS.
2. Management expense ratio is based on total expenses, including sales tax, (excluding commissions and other portfolio transaction costs) for the stated period and is expressed as an annualized per-
centage of daily average net asset value during the period. Out of its management fees, the Manager pays for such services to the ETF as investment manager compensation, service fees and marketing.
3. The Manager, at its discretion, may waive and/or absorb a portion of the fees and/or expenses otherwise payable by the ETF. The waiving and/or absorption of such fees and/or expenses by the
Manager may be terminated at any time, or continued indefinitely, at the discretion of the Manager.
4. The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualized percentage of daily average net asset value during the period.
5. The ETF’s portfolio turnover rate indicates how actively its portfolio investments are traded. A portfolio turnover rate of 100% is equivalent to the ETF buying and selling all of the securities in its port-
folio once in the course of the year. Generally, the higher the ETF’s portfolio turnover rate in a year, the greater the trading costs payable by the ETF in the year, and the greater the chance of an investor
receiving taxable capital gains in the year. There is not necessarily a relationship between a high turnover rate and the performance of the ETF.
8Horizons Active Cdn Municipal Bond ETF
Financial Highlights (continued)
Management Fees
The Manager appoints the Investment Manager and provides, or oversees the provision of, administrative services re-
quired by the ETF including, but not limited to: negotiating contracts with certain third-party service providers, such as
portfolio managers, custodians, registrars, transfer agents, auditors and printers; authorizing the payment of operating
expenses incurred on behalf of the ETF; arranging for the maintenance of accounting records for the ETF; preparing re-
ports to unitholders and to the applicable securities regulatory authorities; calculating the amount and determining the
frequency of distributions by the ETF; preparing financial statements, income tax returns and financial and accounting
information as required by the ETF; ensuring that unitholders are provided with financial statements and other reports as
are required from time to time by applicable law; ensuring that the ETF complies with all other regulatory requirements,
including the continuous disclosure obligations of the ETF under applicable securities laws; administering purchases,
redemptions and other transactions in units of the ETF; and dealing and communicating with unitholders of the ETF. The
Manager provides office facilities and personnel to carry out these services, if not otherwise furnished by any other ser-
vice provider to the ETF. The Manager also monitors the investment strategies of the ETF to ensure that the ETF complies
with its investment objectives, investment strategies and investment restrictions and practices.
In consideration for the provision of these services, the Manager receives a monthly management fee at the annual rate
of 0.35%, plus applicable sales taxes, of the net asset value of the ETF’s Class E units and 0.85%, plus applicable sales taxes,
of the net asset value of the ETF’s Advisor Class units, calculated and accrued daily and payable monthly in arrears.
The Manager, and not the ETF, will pay to registered dealers a service fee equal to 0.50% per year of the net asset value
of Advisor Class units held by clients of the registered dealer. No service fees are paid to registered dealers in respect of
Class E units.
The Investment Manager and Sub-Advisor are compensated for their services out of the management fees without any
further cost to the ETF. Any expenses of the ETF which are waived or absorbed by the Manager are paid out of the man-
agement fees received by the Manager.
The table below details, in percentage terms, the services received by the ETF from the Manager in consideration of the
management fees paid during the period.
Portfolio management fees,
Waived/absorbed expenses
general administrative costs
of the ETF
Marketing and profit
9% 64% 27%
9Horizons Active Cdn Municipal Bond ETF
Past Performance
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in the
ETF. Please read the prospectus before investing. The indicated rates of return are the historical total returns including
changes in unit value and reinvestment of all distributions, and do not take into account sales, redemptions, distributions
or optional charges or income taxes payable by any investor that would have reduced returns. An investment in the ETF is
not guaranteed. Its value changes frequently and past performance may not be repeated. The ETF’s performance num-
bers assume that all distributions are reinvested in additional units of the ETF. If you hold this ETF outside of a registered
plan, income and capital gains distributions that are paid to you increase your income for tax purposes whether paid to
you in cash or reinvested in additional units. The amount of the reinvested taxable distributions is added to the adjusted
cost base of the units that you own. This would decrease your capital gain or increase your capital loss when you later
redeem from the ETF, thereby ensuring that you are not taxed on this amount again. Please consult your tax advisor
regarding your personal tax situation.
Year-by-Year Returns
The following chart presents the ETF’s performance for its Class E and Advisor Class units for the periods shown. In per-
centage terms, the chart shows how much an investment made on the first day of the financial period would have grown
or decreased by the last day of the financial period.
1.50%
1.25%
1.00%
Rate of Return
0.75%
0.50%
0.25%
0.00%
2015 2016
Class E 0.43% 1.03%
Advisor Class 0.21% 0.76%
Class E units and Advisor Class units of the ETF have an initial net asset value of $10.00 as at August 12, 2015.
10Horizons Active Cdn Municipal Bond ETF
Summary of Investment Portfolio
As at June 30, 2016
% of ETF’s
Asset Mix Net Asset Value Net Asset Value
Canadian Bonds $ 107,478,952 99.59%
Cash and Cash Equivalents 4,566,190 4.23%
Other Assets less Liabilities (4,122,158) -3.82%
$ 107,922,984 100.00%
% of ETF’s
Sector Mix Net Asset Value Net Asset Value
Municipal Bonds $ 101,609,195 94.15%
Provincial Bonds & Guarantees 5,867,716 5.44%
Federal Bonds & Guarantees 2,041 0.00%
Cash and Cash Equivalents 4,566,190 4.23%
Other Assets less Liabilities (4,122,158) -3.82%
$ 107,922,984 100.00%
11Horizons Active Cdn Municipal Bond ETF
Summary of Investment Portfolio (continued)
As at June 30, 2016
% of ETF’s
Top 25 Holdings* Net Asset Value
City of Montreal 9.01%
City of Quebec 6.15%
Municipal Finance Authority of British Columbia 4.76%
City of Sherbrooke 4.70%
Province of Ontario 3.91%
Ville de Repentigny 3.21%
Municipality of Levis 3.20%
City of Candiac 3.11%
Ville de Granby 3.01%
Ville de Longueuil 2.81%
Ville de Laval 2.47%
Ville de Terrebonne 2.16%
Ville de Rimouski 1.87%
Ville de Beloeil 1.86%
City of St-Jean-sur-Richelieu Quebec 1.79%
City of Mirabel 1.74%
Ville de Kirkland 1.62%
Ville de Mont-Saint-Hilaire 1.57%
Province of Quebec 1.53%
Reseau de Transport de la Capitale 1.39%
Ville de Mont-Tremblant 1.39%
Municipality of Saint-Calixte 1.29%
Ville de Saint-Lin-Laurentides 1.26%
Ville D’Alma 1.25%
Ville de Saint-Felicien 1.24%
* Note all of the Top 25 Holdings represent the aggregate debt instruments of that issuer in the ETF’s portfolio.
The summary of investment portfolio may change due to the ongoing portfolio transactions of the ETF. The most recent
financial statements are available at no cost by calling 1-866-641-5739, by writing to us at 26 Wellington Street East, Suite
700, Toronto, Ontario, M5E 1S2, by visiting our website at www.horizonsetfs.com or through SEDAR at www.sedar.com.
12Horizons Active Cdn Municipal Bond ETF
MANAGER’S RESPONSIBILITY FOR FINANCIAL REPORTING
The accompanying unaudited interim financial statements of Horizons Active Cdn Municipal Bond ETF (the “ETF”) are the
responsibility of the manager and trustee to the ETF, AlphaPro Management Inc. (the “Manager”). They have been prepared
in accordance with International Financial Reporting Standards using information available and include certain amounts that
are based on the Manager’s best estimates and judgments.
The Manager has developed and maintains a system of internal controls to provide reasonable assurance that all
assets are safeguarded and to produce relevant, reliable and timely financial information, including the accompanying
financial statements.
These financial statements have been approved by the Board of Directors of the Manager.
________________________ ________________________
Steven J. Hawkins Taeyong Lee
Director Director
AlphaPro Management Inc. AlphaPro Management Inc.
NOTICE TO UNITHOLDERS
The Auditors of the ETF have not reviewed these Financial Statements.
AlphaPro Management Inc., the Manager of the ETF, appoints an independent auditor to audit the ETF’s annual
financial statements.
The ETF’s independent auditors have not performed a review of these interim financial statements in accordance with
Canadian generally accepted auditing standards.
13Horizons Active Cdn Municipal Bond ETF
Statements of Financial Position (unaudited)
As at June 30, 2016 and December 31, 2015
2016 2015
Assets
Cash and cash equivalents $ 4,566,190 $ 367,331
Investments 107,478,952 36,904,523
Amounts receivable relating to accrued income 435,025 149,413
Amounts receivable relating to portfolio assets sold 3,176,556 –
Accounts receivable relating to securities issued 996,690 –
Total assets 116,653,413 37,421,267
Liabilities
Accrued expenses 39,818 12,483
Amounts payable relating to securities redeemed – 1,272
Amounts payable for portfolio assets purchased 8,484,765 –
Distribution payable 205,846 46,620
Total liabilities 8,730,429 60,375
Total net assets (note 2) $ 107,922,984 $ 37,360,892
Total net assets, Class E $ 107,424,510 $ 36,861,788
Number of redeemable units outstanding, Class E (note 9) 10,777,735 3,692,699
Total net assets per unit, Class E $ 9.97 $ 9.98
Total net assets, Advisor Class $ 498,474 $ 499,104
Number of redeemable units outstanding, Advisor Class (note 9) 50,008 50,000
Total net assets per unit, Advisor Class $ 9.97 $ 9.98
(See accompanying notes to financial statements)
Approved on behalf of the Board of Directors of the Manager:
______________________ _______________________
Steven J. Hawkins Taeyong Lee
14Horizons Active Cdn Municipal Bond ETF
Statement of Comprehensive Income (unaudited)
For the Period Ended June 30, 2016
2016
Income
Interest income for distribution purposes $ 972,292
Securities lending income (note 8) 7
Net realized loss on sale of investments and derivatives (195,315)
Net change in unrealized appreciation of investments and derivatives 274,568
1,051,552
Expenses
Management fees (note 10) 151,805
Audit fees 7,131
Independent Review Committee fees 92
Custodial fees 5,293
Legal fees 3,229
Securityholder reporting costs 16,500
Administration fees 19,790
Transaction costs 2,501
Other expenses 115
206,456
Amounts that were payable by the investment fund
that were paid or absorbed by the Manager (41,182)
165,274
Increase in net assets for the period $ 886,278
Increase in net assets, Class E $ 882,581
Increase in net assets per unit, Class E 0.12
Increase in net assets, Advisor Class $ 3,697
Increase in net assets per unit, Advisor Class 0.07
(See accompanying notes to financial statements)
15Horizons Active Cdn Municipal Bond ETF
Statement of Changes in Financial Position (unaudited)
For the Period Ended June 30, 2016
2016
Total net assets at the beginning of the period $ 37,360,892
Increase in net assets 886,278
Redeemable unit transactions
Proceeds from the issuance of securities of the investment fund 70,744,875
Aggregate amounts paid on redemption of securities of the investment fund (150,369)
Securities issued on reinvestment of distributions 478
Distributions:
From net investment income (919,170)
Total net assets at the end of the period $ 107,922,984
Total net assets at the beginning of the period, Class E $ 36,861,788
Increase in net assets, Class E 882,581
Redeemable unit transactions
Proceeds from the issuance of securities of the investment fund 70,744,875
Aggregate amounts paid on redemption of securities of the investment fund (150,369)
Securities issued on reinvestment of distributions 365
Distributions:
From net investment income (914,730)
Total net assets at the end of the period, Class E $ 107,424,510
Total net assets at the beginning of the period, Advisor Class $ 499,104
Increase in net assets, Advisor Class 3,697
Redeemable unit transactions
Securities issued on reinvestment of distributions 113
Distributions:
From net investment income (4,440)
Total net assets at the end of the period, Advisor Class $ 498,474
(See accompanying notes to financial statements)
16Horizons Active Cdn Municipal Bond ETF
Statement of Cash Flows (unaudited)
For the Period Ended June 30, 2016
2016
Cash flows from operating activities:
Increase in net assets for the period $ 886,278
Adjustments for:
Net realized loss on sale of investments and derivatives 195,315
Net change in unrealized appreciation of investments and derivatives (274,568)
Purchase of investments (153,857,113)
Proceeds from the sale of investments 88,670,146
Amounts receivable relating to accrued income (285,612)
Accrued expenses 27,335
Net cash used in operating activities (64,638,219)
Cash flows from financing activities:
Amount received from the issuance of units 69,748,185
Amount paid on redemptions of units (151,641)
Distributions paid to unitholders (759,466)
Net cash from financing activities 68,837,078
Net increase in cash and cash equivalents during the period 4,198,859
Cash and cash equivalents at beginning of period 367,331
Cash and cash equivalents at end of period $ 4,566,190
Interest received $ 686,680
(See accompanying notes to financial statements)
17Horizons Active Cdn Municipal Bond ETF
Schedule of Investments (unaudited)
As at June 30, 2016
Average Fair
Security Par Value Cost Value
CANADIAN BONDS (99.59%)
Municipal Bonds (94.15%)
City of Beaconsfield, 1.70%, 2019/04/05 235,000 $ 233,566 $ 234,875
City of Beaconsfield, 1.90%, 2020/04/05 245,000 243,408 245,491
City of Brossard, 2.10%, 2017/07/31 318,000 320,461 320,172
City of Candiac, 1.50%, 2019/07/06 960,000 951,629 951,648
City of Candiac, 1.70%, 2020/07/06 1,017,000 1,006,830 1,006,830
City of Candiac, 1.90%, 2021/07/06 1,410,000 1,396,083 1,396,041
City of Dorval, 1.70%, 2019/03/16 500,000 496,145 499,912
City of Dorval, 2.00%, 2020/03/16 500,000 496,685 501,144
City of Mirabel, 2.00%, 2018/09/09 1,220,000 1,233,176 1,224,398
City of Mirabel, 2.00%, 2020/08/26 650,000 642,356 651,513
City of Montreal, 5.00%, 2018/12/01 2,970,000 3,275,923 3,235,495
City of Montreal, 5.45%, 2019/12/01 3,100,000 3,528,608 3,515,800
City of Montreal, 4.50%, 2021/12/01 2,600,000 2,954,433 2,976,430
City of Quebec, 2.10%, 2019/06/10 5,000,000 5,064,003 5,081,032
City of Quebec, 4.35%, 2019/12/16 300,000 327,873 327,910
City of Quebec, 4.25%, 2020/02/17 600,000 653,334 655,867
City of Quebec, 2.00%, 2020/12/08 560,000 553,806 567,580
City of Sherbrooke, 2.35%, 2018/01/30 2,434,000 2,470,680 2,464,912
City of Sherbrooke, 1.25%, 2018/06/29 800,000 795,448 795,448
City of Sherbrooke, 2.45%, 2019/02/20 450,000 457,128 459,927
City of Sherbrooke, 1.95%, 2020/01/26 1,350,000 1,334,232 1,351,472
City of St-Georges Quebec, 1.40%, 2018/02/24 461,000 456,685 459,612
City of St-Jean-sur-Richelieu Quebec, 1.60%, 2016/12/16 295,000 295,000 295,165
City of St-Jean-sur-Richelieu Quebec, 4.15%, 2016/12/21 824,000 839,771 834,450
City of St-Jean-sur-Richelieu Quebec, 1.40%, 2019/06/22 300,000 297,378 296,487
City of St-Jean-sur-Richelieu Quebec, 2.20%, 2020/12/18 500,000 493,105 500,500
City of Toronto, 4.50%, 2019/12/02 1,000,000 1,114,900 1,108,075
City of Vaudreuil-Dorion, 1.85%, 2018/11/03 718,000 717,110 718,327
Gaspe Ville, 1.50%, 2018/02/16 300,000 298,275 299,953
Municipal Finance Authority of British Columbia, 2.05%, 2019/06/02 4,020,000 4,110,997 4,122,398
Municipal Finance Authority of British Columbia, 1.75%, 2020/10/15 1,000,000 1,010,420 1,016,975
Municipalite de Lac-Beauport, 1.50%, 2017/12/21 147,000 146,000 146,990
Municipalite de Lac-Beauport, 1.90%, 2018/12/21 151,000 150,170 151,697
Municipalite de Lac-Beauport, 2.15%, 2019/12/21 157,000 155,932 158,740
Municipalite de Lac-Beauport, 2.40%, 2020/12/21 478,000 475,514 484,699
Municipalite de Notre-Dame-du-Mont-Carmel, 2.00%, 2020/03/22 289,000 287,353 286,538
Municipalite de Rawdon, 1.50%, 2017/09/01 172,000 171,305 171,670
Municipalite de Saint-Anselme, 2.15%, 2021/01/19 1,000,000 986,750 1,003,206
Municipalite de Saint-Damase, 1.60%, 2019/03/17 186,000 183,160 184,976
Municipalite de Saint-Damase, 1.90%, 2020/03/17 300,000 294,453 299,628
18Horizons Active Cdn Municipal Bond ETF
Schedule of Investments (unaudited) (continued)
As at June 30, 2016
Average Fair
Security Par Value Cost Value
Municipalite de Saint-Jacques, 2.40%, 2018/02/20 376,000 380,625 381,460
Municipalite de Saint-Philippe, 1.25%, 2017/03/22 107,000 106,626 106,708
Municipalite de Saint-Philippe, 1.60%, 2019/03/22 113,000 111,949 112,395
Municipalite de Saint-Philippe, 1.75%, 2020/03/22 117,000 115,420 115,818
Municipalite de Saint-Roch-de-l’Achigan, 1.25%, 2017/05/17 177,000 176,614 176,595
Municipalite de St-Isidore, 1.40%, 2016/12/03 123,000 122,668 122,961
Municipalite de St-Isidore, 1.65%, 2017/12/03 127,000 126,352 127,006
Municipalite de St-Zacharie, 2.10%, 2018/07/23 187,000 188,533 187,722
Municipalite d’Eastman, 1.75%, 2018/12/21 158,000 156,627 157,765
Municipality of Caplan Quebec, 2.35%, 2018/01/29 250,000 252,645 252,555
Municipality of Les Cedres, 1.30%, 2017/01/26 126,000 125,676 125,797
Municipality of Les Cedres, 1.50%, 2018/01/26 129,000 128,394 128,602
Municipality of Levis, 4.20%, 2016/12/20 969,500 988,328 981,887
Municipality of Levis, 4.40%, 2017/05/29 424,000 437,483 435,111
Municipality of Levis, 1.20%, 2017/06/08 165,000 164,592 164,817
Municipality of Levis, 1.85%, 2019/06/02 392,000 389,291 394,555
Municipality of Levis, 2.30%, 2019/06/03 1,450,000 1,476,100 1,472,344
Municipality of Saint-Calixte, 1.30%, 2017/01/25 121,000 120,625 120,803
Municipality of Saint-Calixte, 1.40%, 2018/01/25 124,000 123,070 123,423
Municipality of Saint-Calixte, 2.00%, 2020/01/25 130,000 129,084 129,902
Municipality of Saint-Calixte, 2.30%, 2021/01/25 1,000,000 991,350 1,012,910
Regional Municipality of York, 4.50%, 2020/06/30 1,000,000 1,126,510 1,122,544
Reseau de Transport de la Capitale, 1.30%, 2018/06/08 1,512,000 1,503,986 1,502,595
Reseau de Transport de Longueuil, 1.20%, 2018/05/18 230,000 228,530 228,684
Reseau de Transport de Longueuil, 1.50%, 2019/05/18 239,000 237,499 237,615
Reseau de Transport de Longueuil, 1.70%, 2020/05/18 249,000 247,309 246,765
Sainte-Anne-des-Plaines, 1.65%, 2019/02/23 311,000 308,273 311,471
Victoriaville Quebec, 2.90%, 2018/09/18 512,000 527,340 524,237
Victoriaville Quebec, 2.35%, 2020/10/19 220,000 222,156 223,567
Village de Val-David, 2.00%, 2019/07/28 157,000 156,639 156,984
Village of Coaticook, 1.30%, 2017/03/01 235,000 234,295 234,704
Village of Coaticook, 1.40%, 2018/03/01 241,000 239,120 240,456
Village of Coaticook, 1.70%, 2019/03/01 247,000 244,923 246,173
Village of Coaticook, 1.90%, 2020/03/01 253,000 250,369 251,627
Ville D’Alma, 2.20%, 2018/02/05 353,000 354,906 356,150
Ville D’Alma, 2.05%, 2021/03/02 1,000,000 983,840 993,147
Ville de Beauharnois, 2.00%, 2019/12/21 122,000 120,609 121,896
Ville de Beloeil, 2.45%, 2017/10/11 750,000 759,562 757,023
Ville de Beloeil, 1.75%, 2018/09/08 600,000 597,234 600,282
Ville de Beloeil, 2.85%, 2018/10/15 432,000 442,217 442,974
Ville de Beloeil, 2.05%, 2019/12/01 209,000 208,446 210,406
19Horizons Active Cdn Municipal Bond ETF
Schedule of Investments (unaudited) (continued)
As at June 30, 2016
Average Fair
Security Par Value Cost Value
Ville de Berthierville, 1.30%, 2017/02/17 361,000 359,931 360,484
Ville de Berthierville, 1.70%, 2019/02/17 379,000 375,923 376,983
Ville de Boucherville, 1.40%, 2018/05/04 221,000 220,116 220,895
Ville de Brownsburg-Chatham, 2.45%, 2020/10/19 157,000 159,151 158,829
Ville de Cap-Santé, 1.30%, 2017/01/25 133,000 132,588 132,862
Ville de Chambly, 1.85%, 2019/08/18 106,000 105,110 106,131
Ville de Cowansville, 1.50%, 2018/01/26 552,000 549,516 550,298
Ville de Cowansville, 1.90%, 2020/01/26 280,000 276,500 278,838
Ville de Dolbeau-Mistassini, 1.50%, 2018/03/15 859,000 854,052 858,775
Ville de Dollard-des-Ormeaux, 2.00%, 2020/03/23 1,242,000 1,237,728 1,249,758
Ville de Farnham, 1.30%, 2017/02/16 150,000 149,550 149,783
Ville de Farnham, 1.40%, 2018/02/16 154,000 152,885 153,215
Ville de Farnham, 1.70%, 2019/02/16 157,000 155,728 156,574
Ville de Fermont, 1.40%, 2016/11/24 117,000 116,660 116,972
Ville de Gatineau, 4.25%, 2017/03/20 250,000 256,245 254,984
Ville de Gatineau, 4.25%, 2019/12/02 160,000 172,158 172,696
Ville de Gatineau, 2.20%, 2020/09/15 500,000 496,015 506,947
Ville de Granby, 1.75%, 2017/12/16 446,000 446,040 447,233
Ville de Granby, 1.50%, 2018/03/23 412,000 409,673 411,985
Ville de Granby, 2.90%, 2018/09/18 279,000 285,763 286,174
Ville de Granby, 1.85%, 2020/03/23 853,000 842,977 850,591
Ville de Granby, 4.20%, 2021/02/22 252,000 274,403 274,403
Ville de Granby, 1.75%, 2021/07/06 1,000,000 981,890 981,900
Ville de Kirkland, 1.90%, 2020/02/02 1,742,000 1,725,068 1,745,654
Ville de La Prairie, 2.45%, 2017/09/10 223,000 226,283 225,721
Ville de Lac-Brome, 2.30%, 2017/09/19 512,000 517,412 517,960
Ville de Lachute, 1.50%, 2017/09/23 123,000 122,390 122,739
Ville de Laval, 5.00%, 2019/03/11 1,462,000 1,598,258 1,598,808
Ville de Laval, 4.35%, 2019/11/04 975,000 1,060,858 1,061,768
Ville de L’Île-Perrot, 1.70%, 2018/09/22 397,000 395,059 396,476
Ville de Longueuil, 1.85%, 2017/11/19 750,000 753,188 751,496
Ville de Longueuil, 1.80%, 2018/11/10 300,000 298,920 301,010
Ville de Longueuil, 1.70%, 2020/07/13 1,000,000 989,280 989,280
Ville de Longueuil, 1.85%, 2021/07/13 1,000,000 986,790 986,790
Ville de Lorraine, 1.65%, 2019/02/23 182,000 180,404 181,312
Ville de Mercier, 1.30%, 2016/09/22 241,000 240,301 240,918
Ville de Mercier, 1.70%, 2018/09/22 256,000 254,438 255,390
Ville de Mont-Saint-Hilaire, 2.15%, 2018/11/26 612,000 616,333 618,276
Ville de Mont-Saint-Hilaire, 2.75%, 2018/11/27 1,062,000 1,087,817 1,080,606
Ville de Mont-Tremblant, 2.25%, 2018/01/23 1,485,000 1,501,397 1,502,187
Ville de Plessisville, 1.30%, 2017/03/22 243,000 242,222 242,424
Ville de Plessisville, 1.50%, 2018/03/22 249,000 247,630 247,677
20Horizons Active Cdn Municipal Bond ETF
Schedule of Investments (unaudited) (continued)
As at June 30, 2016
Average Fair
Security Par Value Cost Value
Ville de Prevost, 1.65%, 2018/08/24 249,000 247,302 249,290
Ville de Repentigny, 1.30%, 2017/03/30 254,000 253,190 253,601
Ville de Repentigny, 1.40%, 2019/06/29 1,608,000 1,589,765 1,589,765
Ville de Repentigny, 1.60%, 2020/06/29 1,639,000 1,617,021 1,617,021
Ville de Rimouski, 2.60%, 2019/04/01 1,174,000 1,201,742 1,208,226
Ville de Rimouski, 2.30%, 2020/12/01 800,000 788,264 810,682
Ville de Riviere-Du-Loup, 2.40%, 2020/11/24 162,000 163,866 163,572
Ville de Roberval, 2.00%, 2020/09/01 500,000 493,135 500,622
Ville de Rosemere, 1.30%, 2017/06/22 243,000 240,910 243,033
Ville de Rosemere, 1.85%, 2018/11/18 376,000 372,860 378,094
Ville de Rouyn-Noranda, 2.05%, 2017/02/27 440,000 442,781 441,571
Ville de Rouyn-Noranda, 4.30%, 2017/03/21 107,000 109,730 109,169
Ville de Rouyn-Noranda, 1.30%, 2017/03/30 632,000 630,003 632,053
Ville de Saguenay, 2.60%, 2017/04/18 575,000 581,222 580,487
Ville de Saint-Basile-Le-Grand, 1.50%, 2018/03/22 364,000 361,944 363,976
Ville de Saint-Basile-Le-Grand, 1.85%, 2020/03/22 593,000 586,033 589,126
Ville de Sainte Marthe-Sur Le-Lac, 2.00%, 2020/05/27 270,000 267,127 269,642
Ville de Sainte-Adele, 1.60%, 2017/12/01 332,000 330,041 332,263
Ville de Sainte-Catherine, 1.65%, 2019/02/23 452,000 448,036 451,487
Ville de Sainte-Catherine-de-la-Jacques, 2.25%, 2017/12/04 300,000 303,372 303,008
Ville de Sainte-Catherine-de-la-Jacques, 2.50%, 2018/08/27 406,000 412,646 413,825
Ville de Sainte-Julie, 1.25%, 2017/04/19 592,000 590,538 591,310
Ville de Sainte-Marie, 1.40%, 2018/04/27 366,000 361,864 364,711
Ville de Sainte-Marie, 1.75%, 2020/04/27 500,000 490,150 497,712
Ville de Saint-Felicien, 1.75%, 2018/01/27 200,000 199,120 200,800
Ville de Saint-Felicien, 1.60%, 2019/02/02 560,000 554,635 558,304
Ville de Saint-Felicien, 2.00%, 2020/02/02 575,000 571,602 574,041
Ville de Saint-Hyacinthe, 4.25%, 2017/03/27 100,000 102,550 102,037
Ville de Saint-Hyacinthe, 1.25%, 2017/05/19 384,000 383,163 383,492
Ville de Saint-Hyacinthe, 1.60%, 2017/11/17 400,000 397,588 400,452
Ville de Saint-Jerome, 4.65%, 2017/10/09 750,000 783,098 779,765
Ville de Saint-Lin-Laurentides, 1.30%, 2017/02/09 235,000 234,304 234,631
Ville de Saint-Lin-Laurentides, 1.75%, 2020/03/23 982,000 967,182 972,108
Ville de Saint-Lin-Laurentides, 2.35%, 2020/10/20 155,000 156,519 156,178
Ville de St-Bruno-De-Montarville, 1.40%, 2017/09/08 491,000 488,314 490,265
Ville de St-Raymond, 1.65%, 2019/02/23 247,000 244,834 247,374
Ville de St-Sauveur, 2.00%, 2020/09/01 600,000 592,554 600,747
Ville de Terrebonne, 2.35%, 2016/08/22 630,000 635,235 630,890
Ville de Terrebonne, 2.30%, 2017/11/28 1,685,000 1,706,197 1,703,911
Ville de Thetford Mines, 1.30%, 2016/09/01 474,000 472,829 473,876
Ville de Thetford Mines, 2.10%, 2017/01/23 211,000 212,443 211,846
21Horizons Active Cdn Municipal Bond ETF
Schedule of Investments (unaudited) (continued)
As at June 30, 2016
Average Fair
Security Par Value Cost Value
Ville de Thetford Mines, 1.25%, 2018/06/01 619,000 615,719 615,702
Ville de Varennes, 2.50%, 2017/05/15 191,000 193,808 192,796
Ville de Varennes, 2.35%, 2020/10/19 155,000 156,519 157,513
101,332,305 101,609,195
Provincial Bonds (5.44%)
Province of Ontario, 4.20%, 2020/06/02 2,509,000 2,797,656 2,804,986
Province of Ontario, 4.00%, 2021/06/02 1,250,000 1,410,988 1,415,086
Province of Quebec, 4.50%, 2018/12/01 1,517,000 1,650,385 1,647,644
5,859,029 5,867,716
Government Bonds (0.00%)
Canada Housing Trust No. 1, 1.75%, 2018/06/15 2,000 2,057 2,041
TOTAL CANADIAN BONDS 107,193,391 107,478,952
TOTAL INVESTMENT PORTFOLIO (99.59%) $ 107,193,391 $ 107,478,952
Cash and cash equivalents (4.23%) 4,566,190
Other assets less liabilities (-3.82%) (4,122,158)
TOTAL NET ASSETS (100.00%) $ 107,922,984
(See accompanying notes to financial statements)
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