Hamilton ETFs

U.S. Bank M&A: Another Accretive MOE, Another Positive Market Reaction

On Monday, this year’s third (sizable) U.S. bank merger-of-equals (“MOE”) was announced, continuing a trend we expected following similar transactions early in 2019. We have previously written that after a multi-year period of muted merger activity that U.S. bank consolidation – particularly among mid-cap banks – was poised to accelerate. We have cited this theme as impacting the U.S. mid-cap financials sector generally and the banking…

U.S. Mid-Caps: Yield Curve False Alarm? 9th Straight Quarter of 10%+ EPS Growth

Since Hamilton U.S. Mid-Cap Financials ETF (USD) (ticker: HFMU.U) was launched in September 2017, the yield curve has flattened. Some market participants have taken this broader market signal to be an accurate predictor of a recession and by extension a credit cycle for banks. However, those interpreting the flattening of the yield curve (spread between the yield on the US 10 year and the Fed funds…

Australian Financials: History of Strong/Stable Dividend Growth

The Australian financial sector is among the highest quality and strongest in the world (and very similar to that of Canada). Moreover, Australia is one of the wealthiest countries in the world with GDP/capita nearly 20% higher than that of Canada. It is also forecast to be one of the world’s fastest growing developed economies in 2020 (at 2.4%), providing a supportive backdrop to the financial…

13th Straight Quarter of Double-Digit EPS Growth; Valuations at Five-Year Lows

Hamilton Global Bank ETF (ticker: HBG) holdings reported portfolio-weighted EPS growth of 10% Y/Y[1], driven by strong U.S. banks fundamentals (~60% weight) and a diversified portfolio of global banks (~40% weight). This is the 13th consecutive quarter of double-digit portfolio-weighted EPS growth for HBG. The strong growth was led by U.S. mid-caps and bank holdings in India, Norway and select European countries. However, despite this strong…

Hamilton ETFs and Purpose Investments Announce Completion and Exchange Ratio for Merger and Related Matters

TORONTO, October 28, 2019 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) and Purpose Investments Inc. are pleased to announce that the previously announced merger (the “Merger”) of Purpose Global Financials Income Fund (the “Terminating Fund”, “PFG”) into Hamilton Australian Financials Yield ETF (the “Continuing Fund”, “HFA”) was completed after the close of business of October 25, 2019 (the “Effective Date”). Merger Implementation “We are pleased to…

Hamilton ETFs Announces Q4 2019 Monthly Distributions for HCB, HFA

TORONTO, October 17, 2019 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) is pleased to announce the monthly cash distributions for its Hamilton Canadian Bank Variable-Weight ETF (ticker “HCB”) and Hamilton Australian Financials Yield ETF (ticker “HFA”), both of which trade on the Toronto Stock Exchange, for the fourth quarter of 2019. The ex-dividend date for each month’s distribution is indicated in the table below (column, “Ex-dividend…

Hamilton ETFs and Purpose Investments Announce Securityholder Approval of Fund Merger

TORONTO, October 17, 2019 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) and Purpose Investments Inc. (“Purpose”) are pleased to announce that the special meeting relating to the approval of the previously announced proposed merger of Purpose Global Financials Income Fund (TSX: PFG) (the “Terminating Fund”) into Hamilton Australian Financials Yield ETF (TSX: HFA) (the “Merger”) was held today. In accordance with applicable legal requirements, securityholders of…

Notes from Dallas: Big Things Happen Here

We recently returned from a visit to Dallas (our third in four years) where we met with eight banks operating in the Lone Star State. Five of the eight have footprints beyond Texas, and hence offered a fuller picture of the attractiveness of the Texas economy and business outlook (hint, there’s a reason they’re in Texas). Of the banks we met, three are holdings in our…

A Day in the Life of the U.S. Financials – Notes from New York

Three days in New York gave us the opportunity to meet with a broad-based group of financial services companies, largely based in the U.S., but several operating globally. Included in the mix were several holdings of the Hamilton Global Financials Yield ETF (ticker: HFY) and the Hamilton U.S. Mid-Cap Financials ETF (USD) (ticker: HFMU.U), both of which invest in the broader financials services sector. The former…

Hamilton ETFs Announces September 2019 Distributions

TORONTO, September 23, 2019 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) is pleased to announce the cash distributions for its suite of financial services ETFs, all of which trade on the Toronto Stock Exchange, for the period ending September 30, 2019. The ex-dividend date for these distributions is anticipated to be September 27, 2019, for all unitholders of record on September 30, 2019. The distributions will…

What U.S. Investment Bankers and Banks are Saying about M&A

At Hamilton ETFs, the prospects for M&A is one the supporting factors for our investment thesis for the U.S. mid-cap banks, in which both the Hamilton Global Bank ETF (ticker: HBG) and Hamilton U.S. Mid-Cap Financials ETF (USD) (ticker: HFMU.U) are heavily-weighted[1]. Recent meetings in New York, Dallas and Washington, DC provided us with an opportunity to hear nuanced comments and feedback on the state of…

Notes from Washington, DC – Investigating One of the Wealthiest MSAs in the Country

We recently had the opportunity to meet senior management of over a dozen U.S. mid-cap banks headquartered in the Washington, DC area. Anchored by the capital city, the Washington-Arlington-Alexandria MSA (Washington MSA) is the sixth largest U.S. MSA ([1]) with real GDP of US$507 bln ([2]) and a population of 6.3 mln. Importantly, it is also the second wealthiest MSA ([3]) in the entire country, supported…

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