/NOT FOR DISSEMINATION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION TO THE
UNITED STATES OF AMERICA./
TORONTO, Feb. 10, 2015 /CNW/ - First Asset Investment
Management Inc. is pleased to announce the launch of First Asset
Energy Giants Covered Call ETF (TMX: NXF). NXF invests on an
equal weight basis in a portfolio of equity securities of the 15
largest non-Canadian oil and gas exploration and production
companies measured by $USD market capitalization with common stock
or ADRs listed on a Canadian or U.S. stock exchange, and employs a
covered call option writing program on approximately, and not more
than, 25% of the securities of each portfolio issuer. NXF is
designed to provide investors with quarterly cash distributions,
the opportunity for capital appreciation and lower overall
volatility of returns on the portfolio than would be experienced by
owning a portfolio of securities of such issuers
directly. NXF's portfolio will be rebalanced to equal
weight at the end of each calendar quarter. Units of
NXF are available in currency hedged and unhedged versions.
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"NXF represents
another example of how First Asset is trying to meet the real world
needs of Canadian investors. We excluded Canadian energy
producers to avoid replicating exposure that most Canadians already
have, and combined equal weighted exposure to the portfolio of
energy giants with our 25% covered call writing strategy. The
result is a way to invest in large cap energy companies with the
benefits of writing covered call options on a portion of the
portfolio – a balance of market participation with option premiums.
We believe it represents another smart solution for Canadian
advisors to help achieve their clients'
objectives.
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Barry Gordon,
President and CEO, First Asset Investment Management
Inc.
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Call Options - An attractive risk adjusted
approach
Large capitalization energy producers are expected
to be attractive long-term investments, but may exhibit significant
price volatility for the foreseeable future. Accordingly, the
Manager believes that an investment strategy which incorporates
equal weighting combined with selling call options is a balanced
approach that will offer the potential to capitalize on the sector
volatility while retaining the upside on a significant portion of
the portfolio.
A similar methodology has been successfully applied by First
Asset to a portfolio of the 25 largest North American technology
companies. First Asset Tech Giants Covered Call ETF
(TMX:TXF, launched in October 2011)
has achieved compound annual total returns of 13.87% since
inception to Jan 30, 2015, and has an
attractive distribution yield of 6.05% as at December 31, 2014.
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First Asset Tech
Giants Covered Call ETF (TXF)
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1
year
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2
year
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3
year
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Since
Inception
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Performance
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10.43%
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17.61%
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14.32%
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13.87%
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The indicated rates
of return are the historical annual compounded total returns,
including changes in unit value and do not take into account sales,
redemption or optional charges or income taxes payable by a
security holder that would have reduced returns. Exchange
traded funds are not guaranteed, their values change frequently and
past performance may not be repeated. As the underlying
portfolio holdings of TXF and NXF are not the same, their
performance will differ. The distribution yield of TXF is
calculated on the Fund's actual distributions paid to investors
over the past 12 months based on NAV. All distributions are
paid in cash.
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First Asset Giants
ETFs
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TSX Ticker
Symbols
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Common
Units
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Advisor
Units
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First Asset Tech
Giants Covered Call ETF
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TXF
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TXF.A
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New: First Asset Energy Giants
Covered Call ETF
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NXF
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NXF.A
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Unhedged
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NXF.B
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NXF.D
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First Asset Energy Giants Covered Call ETF has closed the
initial offering of its currency hedged and unhedged common class
units and currency hedged and unhedged advisor units and these
units will begin trading on the Toronto Stock Exchange ("TSX")
today.
First Asset - Smart SolutionsTM
First Asset
is an independent investment firm, focused on providing smart, low
cost solutions that address the real-world investment needs of
Canadians - capital appreciation, income generation and risk
mitigation. Rooted in strong fundamentals, First Asset's smart
solutions strive to deliver better risk-adjusted returns than the
broad market while helping investors achieve their personal
financial goals.
First Asset's comprehensive suite of 37 ETFs allow advisors to
construct smart, well diversified and good risk adjusted client
portfolios.
This communication is intended for informational purposes only.
This offering is made only by prospectus. The prospectus
contains important detailed information about the First Asset ETF
and its units. A copy of the prospectus may be obtained from your
investment advisor, First Asset or at www.sedar.com. Investors
should read the prospectus before making an investment decision.
Commissions, trailing fees, management fees and expenses all may be
associated with investments in the First Asset ETF. The First Asset
ETF is managed by First Asset Investment Management Inc.
SOURCE First Asset