Hamilton Capital Partners Inc. (“Hamilton ETFs”) is pleased to announce proposed enhancements to its investment fund offerings. Hamilton ETFs is announcing special meetings of unitholders (the “Meetings” and each, a “Meeting”) of Hamilton Enhanced Multi-Sector Covered Call ETF (TSX: HDIV) and Hamilton Enhanced U.S. Covered Call ETF (TSX: HYLD, HYLD.U) (each, an “ETF”, together, the “ETFs”), at which unitholders of each ETF will be asked to consider and vote upon a proposal to approve a change to the investment objective of each ETF (each, a “Proposed Change” and together, the “Proposed Changes”).
“The investor reception to the launches of HDIV and HYLD has been tremendous. We believe the proposed changes to the ETFs’ investment objectives and strategies reflect their growing size and that removing the requirement to track external indices will provide greater flexibility to react to the evolution of the U.S. and Canadian covered call ETF market as well as unexpected changes in market conditions and/or developments impacting any constituent exchange traded funds. In addition, if the Proposed Changes are implemented, the ETFs will also no longer be required to pay index licensing fees. We believe the Proposed Changes will benefit unitholders and align with the ETFs’ objectives of providing attractive monthly income and long-term capital appreciation,” said Rob Wessel, Managing Partner of Hamilton ETFs.
Hamilton Enhanced Multi-Sector Covered Call ETF
If the proposed investment objective of Hamilton Enhanced Multi-Sector Covered Call ETF is approved, the ETF’s new investment objective will be to provide attractive monthly income and long-term capital appreciation from a diversified, multi-sector portfolio of primarily covered call ETFs focused on Canada. The ETF will continue to use leverage in order to seek to achieve its investment objective. The maximum aggregate leverage of the ETF will not exceed approximately 25% of its net asset value.
Hamilton Enhanced U.S. Covered Call ETF
If the proposed investment objective of Hamilton Enhanced U.S. Covered Call ETF is approved, the ETF’s new investment objective will be to provide attractive monthly income and long-term capital appreciation from a diversified, multi-sector portfolio of primarily covered call ETFs, primarily focused on the U.S. The ETF will continue to use leverage in order to seek to achieve its investment objective. The maximum aggregate leverage of the ETF will not exceed approximately 25% of its net asset value.
The decision to propose the changes to the investment objectives of the ETFs follows an extensive review by Hamilton ETFs of the activities of each ETF, in light of the current size and assets under management of each ETF, which have grown significantly since initial listing. Hamilton ETFs believes that it is in the best interests of the ETFs and their respective unitholders, to amend the investment objectives of each ETF. Subject to all required unitholder and other approvals being obtained, Hamilton ETFs currently anticipates implementing each Proposed Change on or about July 1, 2022.
The Meeting for HDIV will be held at 11:00 a.m. (Toronto time) and the Meeting for HYLD will be held at 11:30 a.m. (Toronto time) on June 7, 2022, in a virtual-only format where unitholders of the ETFs may attend and participate via live audio webcast. Unitholders of the ETFs at the close of business on April 22, 2022, the record date for the Meetings, will be entitled to receive notice of, and vote at, the Meetings. Registered unitholders and duly appointed proxyholders will be able to participate in and vote online in real time at the Meeting for HDIV at www.virtualshareholdermeeting.com/HDIV2022 and at the Meeting for HYLD at www.virtualshareholdermeeting.com/HYLD2022.
Further details regarding the Meetings are described in the management information circular dated May 6, 2022, which is, or will be, available to unitholders of the ETFs at www.sedar.com and https://hamiltonetfs.com/.
Change in Risk Rating for Hamilton Enhanced U.S. Covered Call ETF
In a separate press release today, Hamilton ETFs also announced that the risk rating for Hamilton Enhanced U.S. Covered Call ETF (TSX: HYLD, HYLD.U) has been changed from “Medium-to-High” to “Medium”. The risk rating change is effective immediately and is based on the risk classification methodology mandated by the Canadian Securities Administrators to determine the risk level of investment funds. The risk rating change is not a result of any proposed changes to the investment objectives, strategies or management of HYLD, and Hamilton ETFs does not expect the risk rating to change as a result of the implementation of the Proposed Change in respect of HYLD, if such Proposed Change is approved at the Meeting for HYLD.
About Hamilton ETFs
Hamilton ETFs is a Canadian investment manager specializing in the global financial services sector. With over $1.5 billion in assets under management, the firm offers a suite of exchange traded funds including both rules-based and active mandates. Hamilton ETFs is also an active commentator on the global financial services sector; the firm’s most recent Insights can be found at www.hamiltonetfs.com/insights-commentary.
Commissions, trailing commissions, management fees and expenses all may be associated with an investment in the ETFs. The relevant prospectus contains important detailed information about each ETF. Please read the relevant prospectus before investing. The ETFs are not guaranteed, their values change frequently and past performance may not be repeated.
This press release is for information purposes only and does not constitute an offer to sell or a solicitation to buy the securities referred to herein. This press release is not for dissemination in the United States or for distribution to U.S. news wire services.
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