Hamilton Capital Global Bank ETF (HBG/HBG.U)

Highlights1,2
  • Actively managed portfolio of global banks in ~15 countries
  • Outperforming Global Banks Index (CAD) by ~12% since inception while experiencing comparatively lower drawdowns in corrections
  • Annualized return of ~22% since inception
  • Only 5 down months since inception vs. 8 for Cdn banks, 9 for U.S. banks
  • Dividend yield of 1.96% (quarterly distributions)
  • Managed by portfolio management team with over 50 years’ experience
  • Scroll down for HBG Manager Commentary
Targeted Attributes
  • Similar portfolio beta to the North American banks
  • Favourable valuation and positive growth trends in consensus EPS growth and dividends
  • Lower concentrations/correlations
  • Diversified by position and geography
Performance 1 Mo 3 Mo 6 Mo YTD 1 Yr SI1
Hamilton Capital Global Bank ETF 1.0% 7.4% 8.1% 11.4% 16.9% 21.5%

1. Performance is annualized since inception on January 25, 2016, as at November 30, 2017.
2. KBW Global Banks Index (GBKXN) translated to CAD.

HBG Manager Commentary

HBG: Reducing Australian Bank Exposure on Rising Regulatory Risk (Dec 5, 2017)

HBG: U.S. Bank Mergers in Two Charts (Dec 4, 2017)

Notes from the Field: “Follow the Sun” / Catching up with U.S. Banks in Phoenix (Nov 30, 2017)

HBG: U.S. Bank Portfolio Posts 16% EPS Growth Y/Y; Outperforming all US Bank Peers for 5 Consecutive Quarter (Nov 16, 2017)

HBG: EPS Growth for HBG’s U.S. Bank Portfolio Grows 20% Y/Y; Outperforming Peers for 5th Consecutive Quarter (Sept 5, 2017)

HBG: Notes from Italy: Economic Recovery and NPL Progress Improving Confidence (June 30, 2017)

HBG: Notes from the Field: Everything’s Peachy in Atlanta (June 13, 2017)

HBG: Notes from the Field: At Home with the Challengers of U.K. Banking (June 5, 2017)

+ More commentary
HBG Historical NAV

The chart of Historical NAV does not represent performance of HBG. The chart shows the daily movements of the NAV and has been adjusted to reflect historical distributions.

Geographic Exposures3

Top 10 Holdings3
# Ticker Name Country Weight
1 SIVB SVB Financial Group (CA) United States 3.8%
2 IBKC Iberiabank Corp (LA) United States 3.8%
3 WAL Western Alliance Bancorp (AZ) United States 3.6%
4 FNB F.N.B. Corporation (PA) United States 3.2%
5 CABK CaixaBank S.A Spain 2.9%
6 IBN ICICI Bank Ltd India 2.9%
7 DNB DNB ASA Norway 2.6%
8 STL Sterling Bancorp (NY) United States 2.6%
9 PACW PacWest Bancorp (CA) United States 2.6%
10 BSMX Grupo Financiero Santander Mexico (ADR) Mexico 2.4%

3. As at November 30, 2017, as a percent of net asset value.

Overview

The investment objective of Hamilton Capital Global Bank ETF (“HBG”) is to seek long-term total returns consisting of long-term capital appreciation and regular dividend income from an actively managed portfolio comprised primarily of equity securities of banks and other deposit-taking institutions located anywhere around the globe.

HBG will seek to achieve its investment objective by investing in a portfolio of equity securities across the global banking sector. By investing worldwide, the Portfolio Adviser aims to take advantage of the most attractive opportunities in global banking, while reducing country-specific and concentration risks. The ETF’s portfolio is anticipated to include approximately 40-60 banks and other deposit-taking institutions, from over 10 countries, with a geographic split of roughly 50% U.S./Canada, 25% Europe and 25% other countries. However, the number of positions and percentages by region may vary based on the Portfolio Adviser’s assessment of the most attractive risk/reward opportunities. For certain markets, investments will be made predominantly in American Deposit Receipts (“ADRs”). HBG’s investments may be selected from any country, subsector or capitalization level of the global banking sector.  The Portfolio Adviser may, at its discretion, hedge some or all of the ETF’s non-Canadian dollar currency exposure.

The Portfolio Adviser’s investment strategies will consider both top-down themes as well as bottom-up analysis. Top-down themes may include, but are not limited to, favourable gross domestic product (“GDP”) growth, inflation and interest rate trends, fiscal and monetary policies, and regulatory trends. The Portfolio Adviser’s bottom-up investment process is primarily based on fundamental research, as well as quantitative and technical factors. Investment decisions are ultimately based on an understanding of a company, its business, and its expected outlook, including earnings growth, asset quality, capital and reserves, as well as business mix and dividend policy. The Portfolio Adviser will monitor and review HBG’s investments on an ongoing basis to try to ensure the best relative values are identified.

Distributions

Ex-Dividend Date Record Date Payment Date Payment Amount Type Distribution Frequency
2017-09-28 2017-09-29 2017-10-12 $0.09000 Cash Quarterly
2017-06-28 2017-06-30 2017-07-13 $0.12500 Cash Quarterly
2017-03-29 2017-03-31 2017-04-12 $0.10500 Cash Quarterly
2016-12-28 2016-12-30 n/a $0.14183 Non-cash Annually
2016-12-28 2016-12-30 2017-01-12 $0.11500 Cash Quarterly
2016-09-28 2016-09-30 2016-10-13 $0.11500 Cash Quarterly
2016-06-28 2016-06-30 2016-07-13 $0.11000 Cash Quarterly
2016-03-29 2016-03-31 2016-04-12 $0.03000 Cash Quarterly

The estimated annualized yield is 1.74%*. Please review the documents below for further details.

Pre-authorized cash contribution (PACC) Enrollment Form for HBG

HCP Distribution Reinvestment Plan

* Calculated using the September 15, 2017 net asset value per unit.

Documents

To view the filings of the Hamilton Capital Global Bank ETF (HBG) on SEDAR, please click here.

Summary Document

2017-08-04   HBG/HBG.U Summary (English)  |  (French)

2017-01-16   HBG Summary (English)  |  (French)

Prospectus

2017-08-04   Prospectus (English)  |  (French)

2017-01-16   Prospectus (English)  |  (French)

Financial Statements

2017-06-30   Interim Financial Statements (English)  |  (French)

2016-12-31   Annual Financial Statements (English)  |  (French)

2016-06-30   Interim Financial Statements (English)  |  (French)

Quarterly Summary of Investment Portfolio

2017-09-30   2017Q3 Summary of Investment Portfolio

2017-03-31   2017Q1 Summary of Investment Portfolio

2016-09-30   2016Q3 Summary of Investment Portfolio

2016-03-31   2016Q1 Summary of Investment Portfolio

Independent Review Committee

2017-01-14   2016 Annual Report to Securityholders


Disclaimer: A prospectus containing important information relating to these securities has been filed with the securities commissions or similar authorities in certain jurisdictions of Canada. Copies of the prospectus may be obtained from etf@hamilton-capital.com, www.hamilton-capital.com or on the SEDAR website (www.sedar.com).

Commissions, trailing commissions, management fees and expenses all may be associated with an investment in exchange traded products managed by Hamilton Capital Partners Inc. (the “Hamilton Products”). The Hamilton Products are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the Hamilton Products. Please read the prospectus before investing.

Are you an accredited investor?

Products offered by Hamilton Capital Partners Inc. have a minimum subscription amount of $150,000, unless you meet the definition of an "accredited investor" under National Instrument 45-106 Prospectus and Registration Exemptions.

If you meet the definition of an "accredited investor", you may invest a minimum of $25,000. Please consult the offering documents to determine your qualification status. Investment Advisors should consult their company's internal policies.

The Subscriber must be (and will be at the time the Subscription is executed) an accredited investor under National Instrument 45-106 Prospectus and Registration Exemptions ("NI 45-106")

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