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 date”), for all unitholders of record on the applicable date (in the table, “Record date”). The distributions will be paid in cash, or if the unitholder has enrolled in the dividend reinvestment plan (DRIP), reinvested in additional units of the ETF, on or about the estimated pay date (“Pay date”) indicated in the table.
|ETF name||Ticker||Ex-dividend date||Record date||Pay date||Distribution per unit||Annualized yield (1)|
|Hamilton Canadian Bank Variable-Weight ETF||HCB||Oct. 23, 2019||Oct. 24, 2019||Nov. 05, 2019||$0.0470||3.70%|
|Nov. 28, 2019||Nov. 29, 2019||Dec. 11, 2019||$0.0470||3.70%|
|Dec. 30, 2019||Dec. 31, 2019||Jan. 13, 2020||$0.0470||3.70%|
|Hamilton Australian Financials Yield ETF||HFA||Oct. 23, 2019||Oct. 24, 2019||Nov. 05, 2019||$0.0925||6.30%|
|Nov. 28, 2019||Nov. 29, 2019||Dec. 11, 2019||$0.0925||6.30%|
|Dec. 30, 2019||Dec. 31, 2019||Jan. 13, 2020||$0.0925||6.30%|
- Calculated using the October 15, 2019 net asset value per unit, which is available at www.hamiltonetfs.com.
Distributions will vary from period to period, and the December 2019 distributions may be amended higher in December in order to avoid an ETF having a tax liability for 2019.
As announced on September 3, 2019, Hamilton ETFs entered into a purchase and sale agreement with Purpose Investments Inc., whereby Hamilton ETFs would acquire the management contract of Purpose Global Financials Income Fund (ticker “PFG”), and then, subject to obtaining the required securityholder and regulatory approvals, merge PFG into its Hamilton Australian Financials Yield ETF (ticker “HFA”). The merger will be completed on a tax-deferred basis, which will result in a deemed tax year end occurring immediately prior to the completion of the merger (expected to be October 25, 2019). HFA is required to distribute to unitholders any net realized capital gains accumulated year-to-date and has elected to do so on a non-cash basis.
As of September 30, 2019, the estimated non-cash capital gains to be distributed to unitholders in HFA for the 2019 tax year through October 25 is shown in the table below. A press release confirming the final capital gains distribution rate will be disseminated on or soon after the effective date of the merger. The final capital gains distribution 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 is anticipated to be 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||Estimated Capital Gain per Unit||Estimated Capital Gains as a % of NAV (2)||Frequency|
|Hamilton Australian Financials Yield ETF||HFA||$0.2215||1.26%||Annual|
- Calculated using the October 15, 2019 net asset value per unit, which is available at hamiltonetfs.com.
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.