Harvest Portfolios Group Inc. (“Harvest”) is pleased to announce the completion of the initial offering of Class A Units of Harvest Premium Yield Treasury ETF (the “ETF”) pursuant to a prospectus dated September 22, 2023, filed with the securities regulatory authorities in all of the Canadian provinces and territories. The Class A Units of the ETF will commence trading on the TSX today under the following ticker symbol: HPYT:TSX.
The ETF will target a monthly distribution of $0.15 per Class A Unit and the first distribution of $0.15 will be paid on or about November 9, 2023 to unitholders of record on October 31, 2023 with an ex-dividend date of October 30, 2023. This target distribution rate represents an approximate current annualized yield of 15% based on the opening market price of $12.00 per Class A Unit.
HPYT provides investors with exposure to the US Treasury fixed income market while incorporating a covered call option strategy to generate high levels of monthly income. This ETF aims to combine the safety and strength of investing indirectly in US Treasuries with the higher income potential and tax-efficiency of covered calls.
“HPYT is a unique fixed income addition to our line up. Rooted in US Treasury Bond ETFs, HPYT provides solid underlying quality, and with our option writing expertise, the ability to generate high levels of income with tax efficiency,” said Michael Kovacs, President and CEO of Harvest. “As the largest manager of active covered call strategies in Canada, we take that expertise to a new level with HPYT.”
Investment Objective
Harvest Premium Yield Treasury ETF will seek to provide high monthly cash distributions to Unitholders by investing, on a non-levered basis, in a portfolio of exchange traded mutual funds, selected by the Manager, that provide exposure primarily to longer-dated U.S. treasury bonds and are listed on a regulated stock exchange in North America. Harvest Premium Yield Treasury ETF will generally write covered call options on up to 100% of the portfolio securities. The level of covered call option writing may vary based on market volatility and other factors.
For additional information: Please visit www.harvestportfolios.com, e-mail info@harvestetfs.com or call toll free 1-866-998-8298.
Investment Dealers can access and download certain regulatory documents relating to HPYT such as the ETF Facts and prospectus via the Harvest website at www.harvestportfolios.com.
About Harvest Portfolios Group Inc.
Founded in 2009, Harvest is an independent Canadian Investment Fund Manager managing $3.5 billion as at August 31, 2023 in assets for Canadian Investors. At Harvest ETFs, our guiding principles are premised on building wealth for our clients through ownership of strong businesses that have the potential to grow & generate steady income over time. Harvest ETFs offers an innovative suite of exchange traded funds, mutual funds and publicly-listed structured fund products designed to satisfy the long-term growth and income needs of investors. We pride ourselves in creating trusted investment solutions that meet the expectations of our investors.
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