TORONTO, June 29, 2020 – Hamilton Capital Partners Inc. (“Hamilton ETFs”) is pleased to announce the launch of four new ETFs (each a “Continuing Fund” and, collectively, the “Continuing Funds”) following the successful completion of the previously announced mergers shown in the table below (each a “Merger” and collectively the “Mergers”). The offering of each Continuing Funds’ initial units, which were contingent on the completion of the Mergers, has closed following the implementation and completion of the Mergers’ after the close of business of June 26, 2020 (the “Effective Date”). Class E units of the Continuing Funds will begin trading on Monday, June 29, 2020 on the Toronto Stock Exchange (“TSX”) under the ticker symbols shown below.
|TERMINATING FUND||CONTINUING FUND|
|Hamilton Global Bank ETF||HBG||–>||Hamilton Global Financials ETF||Seeks long-term returns from an actively managed equity portfolio of financial services companies located around the globe||HFG|
|Hamilton Global Financials Yield ETF||HFY|
|Hamilton U.S. Mid-Cap Financials ETF (USD)||HFMU.U||–>||Hamilton U.S. Mid/Small-Cap Financials ETF||Seeks long-term returns from an actively managed equity portfolio of, primarily, U.S.-based mid and small-cap financial services companies||HUM|
|Hamilton Canadian Bank Variable-Weight ETF||HCB||–>||Hamilton Canadian Bank Mean Reversion Index ETF||To track the performance of the Solactive Canadian Bank Mean Reversion Index||HCA|
|Hamilton Australian Financials Yield ETF||HFA||–>||Hamilton Australian Bank Equal-Weight Index ETF||To track the performance of the Solactive Australian Bank Equal-Weight Index||HBA|
“We are excited to complete this important step in the evolution of our financial sector ETFs,” said Rob Wessel, Managing Partner at Hamilton ETFs. “Our renewed line-up will have lower fees, greater diversification and investment flexibility for our actively managed ETFs, and an association with respected global index provider Solactive AG for our rules-based products, which we believe will benefit our investors and help them achieve their investment goals.”
Implementation of Mergers and Exchange Ratios
In relation to the Mergers, Hamilton ETFs also announced today the exchange ratios (each an “Exchange Ratio” and, collectively, the “Exchange Ratios”) for the aforementioned Mergers.
Pursuant to the Mergers, each holder of units of a terminating fund (each a “Terminating Fund” and collectively, the “Terminating Funds”) will automatically receive units of its corresponding Continuing Fund given the stated Exchange Ratio for each unit of the Terminating Fund held on the Effective Date. No fractional ETF units of a Continuing Fund or cash in lieu thereof will be issued or paid under a Merger.
|TERMINATING FUND||Class||CONTINUING FUND||Class||Exchange Ratio||Number of Continuing Fund Units Issued|
|Hamilton Global Bank ETF||E – ETF Units||Hamilton Global Financials ETF||E – ETF Units||0.95682894||786,977|
|Hamilton Global Financials Yield ETF||E – ETF Units||Hamilton Global Financials ETF||E – ETF Units||0.83182718||3,096,858|
|Hamilton U.S. Mid-Cap Financials ETF (USD)||E – ETF Units||Hamilton U.S. Mid/Small-Cap Financials ETF||E – ETF Units||0.99567067||1,891,867|
|Hamilton Canadian Bank Variable-Weight ETF||E – ETF Units||Hamilton Canadian Bank Mean Reversion Index ETF||E – ETF Units||0.74753015||860,277|
|Hamilton Australian Financials Yield ETF||E – ETF Units||Hamilton Australian Bank Equal-Weight Index ETF||E – ETF Units||0.80826580||3,880,320|
In connection with each Merger, units of each Terminating Fund were delisted from the Toronto Stock Exchange at the close of business on June 26, 2020. Securityholders of the Terminating Funds are not required to take any action in order to become securityholders of their corresponding Continuing Funds.
Complete details regarding the Mergers, including the tax basis of the Mergers and the matters considered at the special meetings, were outlined in the management information circular dated May 19, 2020 sent to securityholders of the Terminating Funds of record as of May 18, 2020, available on www.sedar.com.
Also today, Hamilton ETFs confirmed the final distributions to unitholders of the Terminating Funds for the 2020 tax year through June 26, 2020. This is an update to the estimated final distribution previously announced on June 16, 2020.
The Terminating Funds are required to distribute to unitholders any income or net realized capital gains accumulated year-to-date (“final distribution”). The final 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 the respective Continuing ETF. This final distribution was made payable to all unitholders of record on June 26, 2020. The nominal payment date applied to the final distribution is also June 26, 2020, though in actuality there will be no physical payment made as would be the case with cash distributions. In early 2021, the tax characteristics of all 2020 distributions will be reported to brokers via CDS Clearing and Depository Services Inc.
|TERMINATING FUND||Ticker||Confirmed Final Distribution per Unit||Estimated Final Distribution on June 16, 2020|
|Hamilton Global Bank ETF||HBG||$0.00||$0.00|
|Hamilton Global Financials Yield ETF||HFY||$0.00||$0.00|
|Hamilton U.S. Mid-Cap Financials ETF (USD)||HFMU.U||US$0.00834||US$0.00|
|Hamilton Canadian Bank Variable-Weight ETF||HCB||$0.00||$0.00|
|Hamilton Australian Financials Yield ETF||HFA||$0.00||$0.00|
About Hamilton Capital Partners Inc. (Hamilton ETFs)
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.
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.