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”).
“We are pleased to welcome the PFG unitholders to HFA. We believe this merger offers significant benefits for investors”, said Rob Wessel, Managing Partner at Hamilton ETFs. “The Australian financial services sector is among the highest quality and strongest in the world, with similarities to, but low correlations with, the Canadian financial services sector. We believe HFA is well suited for Canadian investors seeking portfolio diversification and monthly income from a financial services sector in one of the world’s most successful economies.”
Pursuant to the Merger, each holder of ETF units of the Terminating Fund will automatically receive ETF units of the Continuing Fund based on the stated exchange ratio (the “Exchange Ratio”), as set out in the table below, for each ETF unit of the Terminating Fund held on the Effective Date. No fractional units of the Continuing Fund, or cash in lieu thereof, will be issued or paid under the Merger. The total number of ETF units of the Continuing Fund issued to the Terminating Fund is also set out in the table below.
|TERMINATING FUND||Class||Previous Ticker||CONTINUING FUND||Class||Ticker||Exchange Ratio||Total Number of Continuing Fund Units Issued|
|Purpose Global Financials Income Fund||ETF||PFG||Hamilton Australian Financials Yield ETF||Class E – ETF Units||HFA||0.53408605||684,486|
ETF Units of the Terminating Fund were delisted from the Toronto Stock Exchange at the close of business on October 24, 2019.
Securityholders of the Terminating Fund are not required to take any action in order to become securityholders of the Continuing Fund.
Complete details regarding the Merger and the matters considered at the special meeting were outlined in the management proxy circular dated September 17, 2019 sent to securityholders of the Terminating Fund of record as of September 16, 2019 and available on www.sedar.com.
Related HFA Distribution
Also today, Hamilton ETFs confirmed the distribution of capital gains to unitholders of HFA for the 2019 tax year through October 25, 2019. This is an update to the estimated capital gains distribution previously announced on October 17, 2019. The Merger with PFG was completed on a tax-deferred basis, which resulted in a deemed tax year end occurring immediately prior to the completion of the Merger. As a result, HFA is required to distribute to unitholders any net realized capital gains accumulated year-to-date and elected to do so on a non-cash basis.
The final capital gains distribution, shown in the table below, will not be paid in cash but will be reinvested and reported as taxable distributions and will be used to increase each unitholder’s adjusted cost base for HFA. The ex-dividend date for this distribution was October 23, 2019, for all unitholders of record on October 24, 2019. In early 2020, the tax characteristics of all 2019 distributions will be reported to brokers via CDS.
|ETF Name||Ticker Symbol||Finalized Capital Gain per Unit||Estimated Capital Gains on October 17, 2019|
|Hamilton Australian Financials Yield ETF||HFA||$0.11605||$0.2215|
About Hamilton Capital Partners Inc.
Hamilton ETFs is a Canadian investment manager specializing in the global financial services sector, with a portfolio management team boasting over 60 years of combined experience. The firm’s specialized investment focus is driven by proprietary research, analysis, and analytical tools. 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.
About Purpose Investments Inc.
Purpose Investments is an asset management company with an unrelenting focus on client-centric innovation, and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-driven financial services company.
For further information: Matt Padanyi, (877) 789-1517, [email protected]