Hamilton ETFs Announces Unitholder Meeting for Proposed Objective Change for Hamilton Enhanced Canadian Bank ETF

TORONTO–(BUSINESS WIRE)–$hcal–Hamilton Capital Partners Inc. (“Hamilton ETFs” or the “Manager”) announced today a proposal to change the investment objective (the “Proposed Change”) of Hamilton Enhanced Canadian Bank ETF (TSX: HCAL) (the “ETF”). Hamilton ETFs is the trustee, manager and portfolio advisor of the ETF.

The Proposed Change is as follows:

Current Investment Objective

Proposed New Investment Objective

The investment objective of the ETF is to replicate, to the extent reasonably possible and before the deduction of fees and expenses, a multiple of the performance of a rules-based, variable-weight Canadian bank index. Specifically, the ETF seeks to replicate a 1.25 times multiple of the Solactive Canadian Bank Mean Reversion Index (or any successor thereto).

 

The ETF will use leverage in order to seek to achieve its investment objective. Leverage will be created through the use of cash borrowings or as otherwise permitted under applicable securities legislation.

The investment objective of the ETF is to replicate, to the extent reasonably possible and before the deduction of fees and expenses, a 1.25 times multiple of the performance of an equal-weight Canadian bank index.

 

The ETF will use leverage in order to seek to achieve its investment objective. Leverage will be created through the use of cash borrowings or as otherwise permitted under applicable securities legislation.

“We would like to thank our investors for their continued support of HCAL, which has experienced significant AUM growth and been Canada’s top performing Canadian bank ETF since its launch in October 20201. We believe the proposed changes will benefit the long-term performance for our unitholders, and that HCAL will remain favourably positioned relative to other Canadian bank strategies for those seeking higher monthly income and long-term capital appreciation”, said Patrick Sommerville, Senior Partner, Head of Business Development at Hamilton ETFs.

The decision to propose the change to the investment objective of the ETF follows a review by Hamilton ETFs of the activities of the ETF, in light of the current size and assets under management of the ETF, which have grown significantly since its launch. Hamilton ETFs believes that it is in the best interests of the ETF and its unitholders to amend the investment objective of the ETF.

In accordance with applicable legal requirements, unitholders of the ETF will be required to approve the Proposed Change. The required unitholder approval will be sought at a special meeting to be held on February 15, 2023 (the “Meeting”), for unitholders of the ETF of record as of December 28, 2022. The Meeting will be held at 11:00 a.m. (Toronto time), in-person, at the offices of Fasken Martineau DuMoulin LLP, 333 Bay Street, Suite 2400, Toronto, Ontario M5H 2T6.

As permitted under Canadian securities legislation, the Manager has opted to use a notice-and-access procedure (the “Notice-and-Access Procedure”) to reduce the volume of paper in the materials distributed for the Meeting and to potentially encourage a higher voting participation rate among unitholders of the ETF. The Manager is sending proxy-related materials using the Notice-and-Access Procedure directly to unitholders, which includes registered unitholders and beneficial unitholders whose securities are held by an intermediary.

Further details regarding the Meeting and the Proposed Change are described in the management information circular dated December 29, 2022, which will be available to unitholders of the ETFs at www.sedar.com and https://hamiltonetfs.com/. If all required approvals are obtained, the Proposed Change will be effective as soon as practicable thereafter.

About Hamilton ETFs

Hamilton ETFs is a Canadian investment manager specializing in the global financial services sector. With more than $1.9 billion in assets under management, the firm offers a suite of exchange traded funds including both rules-based and actively managed 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, 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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1
Based on a universe of seven Canadian bank ETFs that trade on the Toronto Stock Exchange, using total returns since inception on October 14, 2020 through December 30, 2022.

Contacts

For investor inquiries: Contact Hamilton ETFs at (416) 941-9888, [email protected]

For media inquiries: Contact Patrick Sommerville, Senior Partner, Head of Business Development, (416) 941-9250, [email protected].

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