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

Highlights
  • Dividend yield of 4.90% (quarterly distributions)
  • Actively managed portfolio of global financial services companies
  • Available in CAD (HFY) and USD (HFY.U)
  • Global/sector diversification with exposure to ~15 countries and 10 sub-sectors
  • Currency hedging at the discretion of the manager
  • Managed by Rob Wessel, Jennifer Mersereau & Babak Assadi
  • Scroll down for HFY Manager Commentary
Targeted Attributes
  • “REIT-like” 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
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.

Exposures1

Top 10 Holdings1
# Ticker Name Sub-Sector Country Weight
1 ARCC Ares Capital Corp Other United States 3.6%
2 FNB F.N.B. Corporation Banks United States 3.3%
3 PACW PacWest Bancorp Banks United States 3.2%
4 CM CDN Imperial Bank of Commerce Banks Canada 3.0%
5 AV/ Aviva Plc Insurance United Kingdom 3.0%
6 CBA Commonwealth Bank of Aus Banks Australia 3.0%
7 ANZ Australia and NZ Bank Banks Australia 2.9%
8 KN Natixis S.A. Banks France 2.8%
9 SAMPO Sampo Oyj Banks Finland 2.6%
10 GLE Societe Generale Banks France 2.5%

1. As at August 31, 2017, as a percent of net asset value.

Additional Portfolio Disclosure as of August 31, 2017
  • The distribution of holdings was spread across 15 countries, including: United States (37%), Australia (16%), Canada (15%), United Kingdom and Ireland (9%), and Northern Europe (9%).
  • HFY had 57 holdings, including 20 banks (including 2 from the U.S., 4 from Northern Europe, 5 from Australia, 1 from Latin America), 12 insurance companies (in Europe, Australia, and Canada), 10 REITs, and 7 business development companies (BDCs).
  • HFY had 15 positions with gross underlying yields between 5% and 6%, 8 positions with yields between 6% and 7%, and 18 positions with gross underlying yields greater than 7%.
  • Direct exposure to financials domiciled in emerging markets was 1%.

Distributions

Ex-Dividend Date Record Date Payment Date Payment Amount Type Distribution Frequency
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 4.79%.*

* Calculated using the September 15, 2017 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.

Documents

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

Summary Document

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

2017-01-16   HFY 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

2017-03-31   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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