Mr. Martin Fabregas reports

HORIZONS ETFS COMPLETES CONVERSION OF ADVISOR-CLASS UNITS TO COMMON CLASS UNITS

Horizons ETFs Management (Canada) Inc. completed the conversion of all adviser-class units of its Canadian-listed exchange-traded funds to the corresponding common class units of the same ETF at the end of business today, April 28, 2017.

Horizons ETFs, by way of a press release dated Dec. 29, 2016, had previously announced plans to reduce the annual management fee on the adviser-class units by an amount equal to the applicable service fee payable by the manager in respect of that class of units and, either concurrently or as soon as reasonably practicable thereafter, convert all adviser-class units into common class units of the same ETF.

The remaining unitholders of record of converting adviser-class units as of the conversion date will receive a number of whole converted common class units of the same ETF with an aggregate net asset value equal to the aggregate NAV of the units converted, based on their respective NAVs as of the conversion date. The conversion of adviser-class units into whole common class units of the same ETF does not give rise to a disposition by unitholders of converting adviser-class units for tax purposes on any whole units converted. Any remaining fractional adviser-class units will be redeemed for cash, and such redemption will be considered a disposition for tax purposes. The conversion ratio of adviser-class units to common class units for each ETF is detailed in the attached table.

                                  CONVERSION TO COMMON CLASS UNITS
  
ETF name                Adviser-class     Management fee   Adviser-class   Class E (common)   Conversion  
                       management fee   after conversion          ticker            ticker         ratio
                                                    date 
Horizons Active 
Corporate Bond ETF               1.00%              0.50%          HAB.A               HAB      1.001684         
Horizons Seasonal 
Rotation ETF                     1.50%              0.75%          HAC.A               HAC      0.970588         
Horizons Active 
Cdn Bond ETF                     0.92%              0.42%          HAD.A               HAD      1.000193         
Horizons Active 
Global Fixed 
Income ETF                       0.95%              0.45%          HAF.A               HAF      0.999724         
Horizons Active 
Emerging Markets 
Dividend ETF                     1.55%              0.80%          HAJ.A               HAJ      1.000301         
Horizons Active 
Cdn Dividend ETF                 1.45%              0.70%          HAL.A               HAL      1.000747         
Horizons Active 
U.S. Dividend ETF                1.45%              0.70%          HAU.A               HAU      1.000175         
Horizons Active 
Global Dividend 
ETF                              1.55%              0.80%          HAZ.A               HAZ      1.001104         
Horizons Enhanced 
Income U.S. 
Equity (USD) ETF                 1.40%              0.65%   HEA.A, HEA.V        HEA, HEA.U      1.000599         
Horizons Enhanced 
Income Energy ETF                1.40%              0.65%          HEE.A               HEE      1.006836         
Horizons Enhanced 
Income Financials ETF            1.40%              0.65%          HEF.A               HEF      1.004611         

ETF name                Adviser-class     Management fee   Adviser-class   Class E (common)   Conversion  
                       management fee   after conversion          ticker            ticker         ratio
                                                    date
Horizons Enhanced 
Income 
International 
Equity ETF                       1.40%              0.65%          HEJ.A               HEJ      1.000317         
Horizons Enhanced 
Income Gold 
Producers ETF                    1.40%              0.65%          HEP.A               HEP      0.995883         
Horizons Enhanced 
Income Equity ETF                1.40%              0.65%          HEX.A               HEX      1.004115         
Horizons Active 
Floating Rate 
Preferred Share 
ETF                              1.05%              0.55%          HFP.A               HFP      0.999888         
Horizons Active 
Floating Rate 
Bond ETF                         0.90%              0.40%          HFR.A               HFR      1.000939         
Horizons Managed 
Global 
Opportunities ETF                1.60%              0.85%          HGM.A               HGM      0.997091         
Horizons Gold 
Yield ETF                        1.35%              0.60%          HGY.A               HGY      1.000085         
Horizons Morningstar 
Hedge Fund Index ETF             1.20%              0.45%          HHF.A               HHF      0.958100         
Horizons Managed 
Multi-Asset 
Momentum ETF                     1.60%              0.85%          HMA.A               HMA      0.988591         
Horizons Auspice 
Managed Futures 
Index ETF                        1.70%              0.95%          HMF.A               HMF      0.956829         
Horizons Active Cdn 
Municipal Bond ETF               0.79%              0.29%          HMP.A               HMP      1.000167         
Horizons Natural 
Gas Yield ETF                    1.60%              0.85%          HNY.A               HNY      1.000682         
Horizons Active 
Preferred Share  
ETF                              1.05%              0.55%          HPR.A               HPR      1.001569         
Horizons Active 
Floating Rate 
Senior Loan ETF                  1.25%              0.75%          HSL.A               HSL      0.999463         
Horizons Active 
U.S. Floating 
Rate Bond (USD) 
ETF                              0.90%              0.40%          HUF.V             HUF.U      1.000202         
Horizons Active 
High Yield Bond 
ETF                              1.10%              0.60%          HYI.A               HYI      1.000217         

By way of an example, a holder of 1,000 adviser-class units of the Horizons Active Corporate Bond ETF (HAB.A) will receive 1,001 common class units (HAB) of the same ETF based on its conversion ratio. Unitholders do not have to take any action to participate in the elimination of the service fee or the conversion described herein.

We seek Safe Harbor.