Evolve Plans to Launch Canadian Aggregate Bond Enhanced Yield Fund

TORONTO, Sept. 17, 2024 /CNW/ - Evolve Funds Group Inc. ("Evolve" or the "Manager") is pleased to announce that it has filed a preliminary prospectus with the Canadian securities regulators for plans to bring the Evolve Canadian Aggregate Bond Enhanced Yield Fund ("AGG" or the "Fund") to Canadian investors.

"Canadian investors have a significant home bias when investing in fixed income" says Raj Lala, President and CEO at Evolve. "We are pleased to be launching Canada's first Canadian Aggregate Bond Fund with covered calls. With short-term fixed income rates beginning to decline, many investors are looking for alternative sources of yield. AGG offers exposure to the Canadian bond market with the added benefit of tax-efficient, enhanced income." 

AGG seeks to provide investors with attractive monthly income and long-term capital appreciation by investing primarily in fixed income ETFs or fixed income securities primarily issued in Canada. To enhance yield, as well as to mitigate risk and reduce volatility, AGG will employ a covered call option writing program at the discretion of the Manager. The level of covered call option writing may vary based on market volatility and other factors.

The Manager believes that option writing may have the potential to enhance yield and is an effective way to help lower the level of volatility for an investor and potentially improve returns. All other things being equal, higher volatility in the price of a security results in higher Option Premiums in respect of such security. The Manager believes that the underlying ETFs to be held in AGG's portfolio are suited for a covered call writing strategy.

The TSX ticker symbol of the Fund is AGG.

About Evolve Funds Group Inc.

With over $7 billion in assets under management, Evolve is one of Canada's fastest growing ETF providers since launching its first ETF in September 2017. Evolve specializes in bringing innovative ETFs to Canadian investors. Evolve's suite of ETFs provide investors with access to: (i) index-based income strategies; (ii) long term investment themes; and (iii) some of the world's leading investment managers. Established by a team of industry veterans with a proven track record of success, Evolve creates 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.

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

CONTACT INFORMATION: Evolve ETFs, [email protected], t.416.214.4884, tf. 1.844.370.4884; MEDIA CONTACT: Keith Crone, [email protected], 416.966.8716