TORONTO, Sept. 3, 2019 /CNW/ - Hamilton Capital Partners Inc. ("Hamilton ETFs") and Purpose Investments Inc. ("Purpose") are pleased to announce that they have entered into a purchase and sale agreement (the "Purchase Agreement"), whereby Hamilton ETFs will acquire the management contract of Purpose Global Financials Income Fund (TSX: PFG).
Subject to obtaining all required securityholder and regulatory approvals, as well as the satisfaction of all other conditions precedent set out in the Purchase Agreement, Hamilton ETFs will acquire the right to manage PFG and will merge PFG into Hamilton Australian Financials Yield ETF (TSX: HFA) (the "Merger"). PFG currently has approximately $11.3 million in assets under management. Should all approvals be obtained and conditions satisfied, it is expected that the Merger will be effective on or about October 25, 2019 (the "Effective Date").
"We are very excited about the opportunities presented to us by this transaction, particularly because of the benefits it offers investors", said Rob Wessel, Managing Partner at Hamilton ETFs. "Upon completion of the proposed merger into Hamilton Capital Australian Financials Yield ETF, investors will gain exposure to a world class financial services sector with high dividends and a history of long-term outperformance vs. the Canadian financials. HFA has a current yield of 6.3%, making it well suited, in our opinion, for investors seeking monthly dividends and portfolio diversification from a group of companies operating in one of the world's most successful economies."
In accordance with applicable legal requirements, unitholders of PFG will be required to approve the Merger. Such unitholders will receive a Notice of Meeting and a Management Information Circular (the "Meeting Materials") in accordance with applicable securities laws. The required securityholder approval will be sought at a special meeting to be held on or about October 17, 2019 for unitholders of record as of September 16, 2019. Further details of the special meeting and the proposal will be described in the Meeting Materials. Such Meeting Materials will also be made available at www.sedar.com and www.purposeinvest.com.
Should the Merger proceed, it is also expected that units of PFG will be delisted from the TSX on or about two business days prior to the Effective Date (the "De-Listing Date"), subject to the approval of the Toronto Stock Exchange and in accordance with any conditions of such approval. Unitholders of PFG will be able to trade their ETF units on the TSX up to the close of business on the De-Listing Date. If the Merger does not receive all necessary approvals: the transaction and Merger will not proceed; Hamilton will not acquire the management contract of PFG; and, in accordance with all applicable legal requirements, PFG will be terminated as soon as reasonably practicable.
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.
About Purpose Investments
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]
SOURCE Hamilton Capital Partners Inc.
For further information: Patrick Sommerville, Partner, Business Development, 416-941-9250, [email protected]