Hamilton Capital Global Financials Yield ETF (HFY/HFY.U)

Highlights1,2
  • Actively-managed portfolio of global financial services companies
  • Outperformance vs. Canadian Banks with lower drawdowns
  • Dividend yield of 4.74% (quarterly distributions)
  • Consensus portfolio-weighted EPS growth of 12.7% (2019E)
  • Global diversification with exposure to ~15 countries and 10 sub-sectors
  • Managed by portfolio management team with over 60 years’ experience
  • Scroll down for HFY Manager Commentary
Targeted Attributes
  • Attractive yield, with positive rate sensitivity
  • Favourable valuations, positive growth trends in consensus EPS and dividends
  • Diversification by position, geography and sub-sector
  • Lower concentration risk/correlations
Performance 1 Mo 3 Mo 6 Mo YTD 1 Yr SI1
Global Financials Yield ETF (HFY) (2.0%) (0.7%) (0.5%) 1.2% 1.8% 5.3%

1. Performance is annualized since inception on February 6, 2017, as at September 30, 2018.
2. S&P/TSX Diversified Banks Index (STDBNK, “Canadian Banks”).

HFY Historical NAV

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

Exposures3
Top 10 Holdings3
# Ticker Name Sub-Sector Country Weight
1 AB AllianceBernstein Holding LP Asset Mgmt United States 3.1%
2 ARCC Ares Capital Corp Other United States 3.1%
3 BNS Bank of Nova Scotia Banks Canada 2.7%
4 PACW PacWest Bancorp (CA) Banks United States 2.7%
5 HDB HDFC Bank Ltd Banks India 2.7%
6 DBS DBS Group Holdings Banks Singapore 2.6%
7 ZURN Zurich Insurance Group Insurance Switzerland 2.5%
8 LAZ Lazard Ltd Asset Mgmt United States 2.5%
9 KN Natixis Banks France 2.5%
10 FNB FNB Corporation (PA) Banks United States 2.4%

3. As at September 30, 2018, as a percent of net asset value.

Distributions
Ex-Dividend Date Record Date Payment Date Payment Amount Type Distribution Frequency
2018-09-27 2018-09-28 2018-10-11 $0.19000 Cash Quarterly
2018-06-28 2018-06-29 2018-07-12 $0.19000 Cash Quarterly
2018-03-28 2018-03-29 2018-04-11 $0.19500 Cash Quarterly
2017-12-28 2017-12-29 2018-01-11 $0.19500 Cash Quarterly
2017-09-28 2017-09-29 2017-10-12 $0.19500 Cash Quarterly
2017-06-28 2017-06-30 2017-07-13 $0.20000 Cash Quarterly
2017-03-29 2017-03-31 2017-04-12 $0.13000 Cash Quarterly

The estimated annualized yield is 4.60%.*

* Calculated using the September 17, 2018 net asset value per unit.

Overview

The investment objective of Hamilton Capital Global Financials Yield ETF (“HFY”) is to seek long-term returns from an actively managed portfolio consisting of regular dividend and distribution income with modest long-term capital growth by investing in global financial services companies, including but not limited to, commercial and investment banks, insurance companies, brokerages, asset managers, exchanges, real estate investment trusts and other investment companies. The ETF invests primarily in equity and equity related securities of financial companies located anywhere around the globe.

HFY will seek to achieve its investment objective through the selection of financial services companies located around the globe that, in the Portfolio Adviser’s view, have good long-term prospects of increasing dividends and distribution payments. To determine those companies that fit this criteria, the Portfolio Adviser will apply specialized analysis and expertise, reviewing a company’s individual attributes such as its own yield, valuation and growths prospects, as well as its macro environment, including, but not limited to, GDP growth, inflation and interest rate trends, fiscal and monetary policies, and regulatory trends.

At any time, it is anticipated that the ETF’s portfolio will be made up of between approximately 50 and 80 issuers. Such investments will be diversified by country and by sub-sector. HFY will primarily invest in equity securities listed on major global exchanges, including ADRs, and may also, from time to time, invest in preferred securities. The Portfolio Adviser may, at its discretion, hedge some or all of the ETF’s non-Canadian dollar currency exposure.

News

2018-09-21   Hamilton Capital Announces September 2018 Distributions (CNW)

2018-06-22   Hamilton Capital Announces Launch of Canadian Dollar Units of Hamilton Capital U.S. Mid-Cap Financials ETF (USD) and June 2018 Distributions (CNW)

2018-03-20   Hamilton Capital Announces March 2018 Distributions (CNW)

2017-12-29   Hamilton Capital Confirms December 2017 Annual Capital Gains Distributions (CNW)

2017-12-19   Hamilton Capital Announces December 2017 Distributions (CNW)

2017-09-20   Hamilton Capital Announces September 2017 Distributions (CNW)

2017-09-01   Hamilton Capital Launches Hamilton Capital U.S. Mid-Cap Financials ETF (USD) (HFMU.U) (CNW)

2017-06-21   Hamilton Capital Announces HBG, HFY June 2017 Distributions (CNW)

2017-03-22   Hamilton Capital Announces HBG, HFY March 2017 Distributions (CNW)

2017-02-06   Hamilton Capital Launches Hamilton Capital Global Financials Yield ETF (CNW)

2016-12-13   Howard J. Atkinson Joins Board of Hamilton Capital (CNW)

2016-01-14   Hamilton Capital products among a crowded field of ETF hopefuls (Globe and Mail)

Documents

To view the filings of the Hamilton Capital Global Financials Yield ETF (HFY) on SEDAR, please click here.

ETF Facts

2018-08-09   HFY/HFY.U Summary (English)  |  (French)

Prospectus

2018-08-09   Prospectus (English)  |  (French)

Financial Statements

2018-06-30   Interim Financial Statements (English)  |  (French)

2017-12-31   Annual Financial Statements (English)  |  (French)

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

Quarterly Summary of Investment Portfolio

2018-03-31   2018Q1 Summary of Investment Portfolio

Independent Review Committee

2018-03-01   2017 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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