Horizons Active Hybrid Bond and Preferred Share ETF Common

The investment objective of Horizons HFP is to generate income consistent with prevailing short-term preferred share yields while reducing the potential effects of interest rate fluctuations on Horizons HFP. Horizons HFP invests primarily in preferred shares (including securities convertible into preferred shares) of Canadian companies and may also invest in preferred shares of companies located in the United States, debt (including debt-like securities) of Canadian and U.S. issuers, including other income generating securities, and Listed Funds. Horizons HFP will generally maintain a portfolio duration of less than 2 years. Horizons HFP may use derivatives, including interest rate swaps and futures contracts, to contribute to the ability of the ETF to seek to deliver a floating rate of income.