Evolve Files Preliminary Prospectus for Canada's First Actively Managed U.S. Marijuana ETF
TORONTO, March 29, 2019 /CNW/ - Evolve Funds Group Inc. ("Evolve") is pleased to announce that it has filed a preliminary prospectus with the Canadian securities regulators for Canada's first actively managed U.S. marijuana industry focused ETF. The U.S. Marijuana ETF ("USMJ") is designed to provide investors with long-term capital appreciation by actively investing in a diversified mix of equity securities of public issuers that are involved in the U.S. marijuana industry where state and local laws regulate and permit such activities. Evolve will act as portfolio manager for USMJ.
USMJ follows the success of Evolve's actively managed, Evolve Marijuana ETF ("SEED") which is Canada's top performing TSX-listed equity ETF over the past 1 year, ending February 28, 2019. SEED is Canada's top performer out of 504 equity ETFs listed on the TSX.1 Evolve is the portfolio manager of SEED, which has returned 48.48% over this period, more than doubling the performance of the North American Marijuana Index during the same period, as seen in the chart below.
Annual Total Returns2 (as at February 28, 2019)
Ticker |
Evolve ETF & Index |
1 Year |
Since Inception Date (February 12, 2018) |
SEED |
Evolve Marijuana ETF |
48.48% |
40.63% |
NAMMAR |
North American Marijuana Index |
22.56% |
15.89% |
Source: Bloomberg.
1 As ranked by the Bloomberg Canadian TSX-listed equity category, as at February 28, 2019.
2 The rates of return shown in the table are used only to illustrate the effect of the compound growth rate and are not intended to reflect future values of the ETF or returns on investment in the ETF. Total return performance calculations reflect performance from February 28, 2018 to February 28, 2019 on a trailing basis and are subject to change daily.
"The U.S. marijuana market is poised to become the largest in the world as recreational and medical cannabis becomes legal at state levels," said Elliot Johnson, Chief Investment Officer at Evolve ETFs and Portfolio Manager for SEED. "The US growth opportunity in cannabis is similar to the ground floor in Canada over a year ago. As we have seen over the past year with SEED, active management is more appropriate than tracking an index when investing in a developing sector driven by news and filled with entrepreneurial new businesses. We are excited to bring the same approach to the rapidly developing marijuana market in the United States."
USMJ may invest in equity securities of companies listed domestically and globally, and other companies, with business activities in the U.S. recreational and/or medical marijuana industry.
"As a leader in thematic ETFs, we are very pleased with the performance of a number of our ETFs, including marijuana (SEED) and cyber security (CYBR)," said Raj Lala, President and CEO at Evolve. "Our portfolio management team has been able to generate phenomenal performance for investors, making SEED the top performing ETF on the TSX over the past year."
Evolve will employ an investment process that combines quantitative techniques, fundamental analysis and risk management to the portfolio. USMJ will be denominated in Canadian dollars. USMJ will incorporate a dynamic foreign-exchange hedging strategy to hedge back to the Canadian dollar, at the discretion of Evolve.
About Evolve Funds Group Inc.
With assets under management of over $430 million, Evolve is Canada's fastest growing ETF provider since launching its first suite of ETFs on September 20, 2017. As a leader in thematic ETFs, Evolve specializes in bringing innovative ETFs to Canadian investors. Evolve's suite of ETFs provide investors with access to: (i) long term investment themes; (ii) index-based income strategies; and (iii) some of the world's leading investment managers. Established by a team of industry veterans with a proven track record of success, we create investment products that make a difference. For more information, please visit www.evolveetfs.com.
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A preliminary prospectus containing important information relating to securities of the ETF has been filed with the securities commissions or similar authorities in all provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. A copy of the preliminary prospectus is available on SEDAR (www.sedar.com). There will not be any sale or acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
Commissions, management fees, expenses and applicable sales taxes all may be associated with an investment in the exchange traded funds managed by Evolve Funds Group Inc. (the "ETFs"). The indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated. The prospectus contains important detailed information about the ETFs. Please read the prospectus before investing.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "anticipate", "believe", "intend" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolve undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.
SOURCE Evolve ETFs
Evolve ETFs, [email protected], t. 416.214.4884, tf. 1.844.370.4884; MEDIA CONTACT: Keith Crone, [email protected], t. 416.572.2111
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