- Total annualized return of 30% since inception, outperforming Global Banks Index (CAD) by 14%
- Actively managed portfolio of more than 60 global bank stocks
- Global diversification: exposure to ~15 countries
- Quarterly distributions
- Scroll down for HBG and HFY Manager Commentary
- 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||2.9%||8.5%||16.7%||3.4%||39.6%||29.9%|
|Global Banks Index2||2.2%||7.4%||19.8%||1.0%||33.4%||16.2%|
1. Performance is annualized since inception on January 25, 2016, as at February 28, 2017.
2. KBW Global Banks Index (GBKXN) translated to CAD.
HBG and HFY Manager Commentary
HBG: JPM Investor Day Takeaways (Mar 3, 2017)
Another U.S. Mid-Cap Bank Holding to be Acquired (Jan 23, 2017)
HFY: Are REITs Set to Underperform the Financials? (Jan 16, 2017)
Reducing European Exposure on Italian Referendum Uncertainty (Nov 22, 2016)+ More commentary
HBG: Post-Brexit Portfolio Changes (Jul 6, 2016)
U.S. Mid-Cap Bank Holding YDKN “Rumoured to Explore Sale” (May 30, 2016)
On HBG, Seven Charts Comparing Northern Europe to Canada (May 13, 2016)
On HBG, Five Reasons Why We Don’t Own C, JPM, or BAC (May 9, 2016)
HBG Historical NAV
The chart of Historical NAV does not represent performance of HBG. The chart shows the daily movements of the NAV and does not include reinvested distributions.
Top 10 Holdings3
|1||FRC||First Republic Bank||United States||4.0%|
|2||WAL||Western Alliance Bancorp||United States||3.9%|
|3||SIVB||SVB Financial Group||United States||3.9%|
|4||CBA||Commonwealth Bank of Australia||Australia||3.8%|
|5||VM/||Virgin Money Holdings||United Kingdom||3.4%|
|6||BMSX||Grupo Financiero Santander Mexico (ADR)||Mexico||3.0%|
|8||FNB||F.N.B. Corporation||United States||2.6%|
|9||SBNY||Signature Bank||United States||2.2%|
|10||BSAC||Banco Santander Chile (ADR)||Chile||2.2%|
3. As at February 28, 2017, as a percent of net asset value.
Additional Portfolio Disclosure as of February 28, 2017
- The distribution of holdings was spread across 16 countries, including: United States (42%), Northern Europe (11%), Australia (9%), and United Kingdom and Ireland (9%), and Canada (3%).
- HBG had 61 holdings, including 27 U.S. banks, 5 U.K. / Irish banks, 7 Northern European banks (including Netherlands and Sweden) and 4 Australian banks.
- Of the 27 U.S. banks, 25 — representing ~93% of HBG’s U.S. bank portfolio — had total assets of less than $100 billion.
- The U.S. banks are headquartered in 21 different states, spread across major regions, with 37% of the portfolio in the West, 20% in the Midwest, 20% in the Mid-Atlantic, 14% in the Southeast, 6% in the Southwest, and 3% in New England.
- Direct exposure to banks domiciled in emerging markets was 10%, with 5% in India.
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.
|Ex-Dividend Date||Record Date||Payment Date||Payment Amount||Type||Distribution Frequency|
The estimated annualized yield is 1.96%*. Please review the documents below for further details.
* Calculated using the December 16, 2016 net asset value per unit.
2017-03-22 Hamilton Capital Announces HBG, HFY March 2017 Distributions (CNW)
2016-12-19 Hamilton Capital Announces HBG December 2016 Distribution (CNW)
2016-12-13 Howard J. Atkinson Joins Board of Hamilton Capital (CNW)
2016-09-21 Hamilton Capital Announces HBG September 2016 Distribution (CNW)
2016-06-21 Hamilton Capital Announces HBG June 2016 Distribution (CNW)
2016-03-21 Hamilton Capital Announces HBG March 2016 Distribution (CNW)
2016-01-22 Hamilton Capital Launches Canada’s First Global Bank ETF (CNW)
2016-01-14 Hamilton Capital products among a crowded field of ETF hopefuls (Globe and Mail)
To view the filings of the Hamilton Capital Global Bank ETF (HBG) on SEDAR, please click here.
Quarterly 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 email@example.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.