Evolve Plans to Launch Low-Cost Enhanced Yield Bond ETF on October 4, 2023
TORONTO, Sept. 28, 2023 /CNW/ - Evolve Funds Group Inc. ("Evolve" or the "Manager") is pleased to announce that it has filed a final prospectus for the Evolve Enhanced Yield Bond Fund ("BOND" or the "Fund"). BOND is expected to begin trading on Wednesday, October 4, 2023, on the Toronto Stock Exchange ("TSX"), subject to TSX approval.
Evolve has waived the management fee payable on the units of BOND from the date of the prospectus until March 31, 2024. BOND will provide investors with a low-cost fixed income solution that will seek to deliver attractive monthly income and long-term capital appreciation by utilizing an active covered call strategy.
"Market conditions over the past year have been particularly challenging for yield strategies, leading many investors to seek new solutions," said Raj Lala, President and CEO at Evolve. "We are pleased to introduce BOND to investors that are looking to earn higher yield in their fixed income portfolios. This fund is a great complement to our existing suite of covered call ETFs, by providing enhanced income, tax efficient yield and helping cushion downside risk."
BOND will invest primarily in fixed income ETFs. To enhance yield, as well as mitigate risk and reduce volatility, BOND 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 potential to enhance yield and is an effective way to help lower the level of volatility for an investor and potentially improve returns.
The TSX ticker symbol for the Hedged Units (CAD$) of the Fund is "BOND".
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 is a leader in thematic ETFs and 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, Evolve creates investment products that make a difference. For more information, please visit www.evolveetfs.com.
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Commissions, trailing commissions, management fees and expenses all may be associated with exchange traded funds (ETFs) and mutual funds. Please read the prospectus before investing. There are risks involved with investing in ETFs and mutual funds. Please read the prospectus for a complete description of risks relevant to the ETF and mutual fund. Investors may incur customary brokerage commissions in buying or selling ETF and mutual fund units. Investors should monitor their holdings, as frequently as daily, to ensure that they remain consistent with their investment strategies.
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
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