Mulvihill Canadian Bank Enhanced Yield ETF

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Quick Facts+

Inception Date: 02-25-2022

Management Fee: 0.65%

Fund Overview

Overview

Mulvihill Canadian Bank Enhanced Yield ETF “CBNK” provides exposure to the "Big Six" Canadian Banks. Modest leverage of 25% enhances the dividend yields of the underlying stocks and provides additional return potential. Option writing strategies are utilized to enhance portfolio income. The funds pays monthly distributions with a 7% yield target per annum, making CBNK the highest yielding Canadian Bank ETF.

 

Objectives

Mulvihill Canadian Bank Enhanced Yield ETF seeks to provide the Unitholders with long-term capital appreciation through exposure to a portfolio consisting principally of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, The Toronto-Dominion Bank and National Bank of Canada and pay monthly cash distributions.

 

Name Ticker Current NAV Current Yield Recent
Distributions
Most Recent
Distribution Date
Distributions
Since Inception
Mulvihill Canadian Bank Enhanced Yield ETF CBNK $7.78 8.93% $0.06 2022-07-07 $0.23

Top Holdings Top 8 Holdings as of March 31, 2022

Holding Name % of Fund
Bank of Montreal 16.7%
Royal Bank of Canada 16.3%
The Bank of Nova Scotia 16.2%
The Toronto-Dominion Bank 15.8%
National Bank of Canada 15.6%
Canadian Imperial Bank of Commerce 15.4%
Premium Income Corp 3.0%
Cash and Short Term 1.0%
Sector Allocations

Historic Net Asset Value Per Unit

 

Date:   NAV Per
Unit
2022-06-23    $7.78 
2022-06-22    $8.07 
2022-06-21    $8.22 
2022-06-20    $8.22 
2022-06-17    $8.04 
2022-06-16    $8.05 
2022-06-15    $8.33 
2022-06-14    $8.27 
2022-06-13    $8.35 
2022-06-10    $8.55 
2022-06-09    $8.75 
2022-06-08    $8.89 
2022-06-07    $8.98 
2022-06-06    $8.97 
2022-06-03    $8.96 
2022-06-02    $9.04 
2022-06-01    $8.97 
2022-05-31    $8.98 
2022-05-30    $8.98 
2022-05-27    $8.98 
2022-05-26    $8.84 
2022-05-25    $8.79 
2022-05-24    $8.70 
2022-05-20    $8.56 
2022-05-19    $8.56 
2022-05-18    $8.59 
2022-05-17    $8.76 
2022-05-16    $8.60 
2022-05-13    $8.54 
2022-05-12    $8.44 
2022-05-11    $8.50 
2022-05-10    $8.52 
2022-05-09    $8.59 
2022-05-06    $8.71 
2022-05-05    $8.76 
2022-05-04    $8.92 
2022-05-03    $8.84 
2022-05-02    $8.70 
2022-04-29    $8.72 
2022-04-28    $8.84 
2022-04-27    $8.74 
2022-04-26    $8.86 
2022-04-25    $9.02 
2022-04-22    $9.09 
2022-04-21    $9.33 
2022-04-20    $9.36 
2022-04-19    $9.28 
2022-04-18    $9.18 
2022-04-14    $9.19 
2022-04-13    $9.16 
2022-04-12    $9.20 
2022-04-11    $9.33 
2022-04-08    $9.34 
2022-04-07    $9.27 
2022-04-06    $9.39 
2022-04-05    $9.54 
2022-04-04    $9.55 
2022-04-01    $9.47 
2022-03-31    $9.51 
2022-03-30    $9.71 
2022-03-29    $9.76 
2022-03-28    $9.83 
2022-03-25    $9.86 
2022-03-24    $9.80 
2022-03-23    $9.80 
2022-03-22    $10.11 
2022-03-21    $10.07 
2022-03-18    $10.03 
2022-03-17    $9.99 
2022-03-16    $9.94 
2022-03-15    $9.80 
2022-03-14    $9.80 
2022-03-11    $9.72 
2022-03-10    $9.74 
2022-03-09    $9.76 
2022-03-08    $9.55 
2022-03-07    $9.60 
2022-03-04    $9.79 
2022-03-03    $9.85 
2022-03-02    $9.88 
2022-03-01    $9.72 
2022-02-28    $9.90 
2022-02-25    $10.00 

Distributions & Tax

Mulvihill Canadian Bank Enhanced Yield ETF pays monthly distributions targeting a 7% yield per annum.

Distributions are not fixed but are reviewed and set monthly at the discretion of the Fund.

 

Most Recent Distributions

Name Ticker Current Yield* Recent
Distributions
Most Recent
Distribution Date
Distributions
Since Inception
Mulvihill Canadian Bank Enhanced Yield ETF CBNK 8.93% $0.06 2022-07-07 $0.23

 

 

 

Tax and Distribution Summary Year Selection:  

 

  Regular Distribution Special Distribution Total Distribution Capital Gains
per Unit
Div. Income per Unit Return of Capital Interest and Other Income Foreign Dividend Income Witholding Taxes Paid
July 2022 0.058333 0.000000 0.058333 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
June 2022 0.058333 0.000000 0.058333 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
May 2022 0.058333 0.000000 0.058333 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
April 2022 0.058333 0.000000 0.058333 0.000000 0.000000 0.000000 0.000000 0.000000 0.000000
Total for 2022     $0.233332 $0.000000 $0.000000 $0.000000 $0.000000 $0.000000 $0.000000
Percent (%)       0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Distributions
to Date
    $0.233332            

 

Portfolio Manager Updates

 

There are no portfolio manager updates available for this fund.

Fund Features

Objectives

Mulvihill Canadian Bank Enhanced Yield ETF seeks to provide the Unitholders with long-term capital appreciation through exposure to a portfolio consisting principally of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, The Toronto-Dominion Bank and National Bank of Canada and pay monthly cash distributions.

 

Investment Strategy

The fund will invest, primarily in the common shares of the "Big Six" Canadian Banks. The fund will use modest leverage of 25% to enhance the dividend yields of the underlying stocks and provides additional return potential. Option writing strategies are utilized to enhance portfolio income. The fund will, from time to time employ various investment strategies (described below), including the use of derivative instruments to generate income, reduce portfolio volatility and protect capital. The fund seeks to pay monthly distributions, targeting a 7% yield per annum, with additional capital growth potential beyond such yield target.

The fund may (a) from time to time in response to market conditions write covered call options on individual securities to seek to receive premium income, reduce overall portfolio volatility and enhance the portfolio’s total return, (b) from time to time in response to market conditions write cash-covered put options in respect of individual securities that the fund is permitted to hold and in respect of market indices, in order to receive premium income, reduce overall portfolio volatility and reduce the net cost of acquiring the securities subject to put options, (c) purchase call options in respect of securities in which the fund is permitted to invest, (d) purchase put options on individual securities in its portfolio, indexed put options and unleveraged inverse exchange traded funds that provide exposure to such securities, (e) use derivatives, including but not limited to options, forward contracts, futures contracts and swaps for both hedging and non-hedging purposes to generate income, hedge against losses from changes in the prices of the fund’s investments and market declines (f) hold cash or cash equivalents for strategic reasons or to provide cover for the writing of cash covered put options in respect of securities in which the fund is permitted to invest. Options may be either exchange traded or over-the-counter options.

 

Distributions

The Fund expects to make distributions monthly that may consist of net income, net realized capital gains and/or return of capital, if any.

 

Eligibility

RRSPs, DPSPs, RRIFs, RESPs and TFSAs

 

Management Fees

The Fund pays a management fee of 0.65% of net asset value annually to Mulvihill Capital Management for acting as the Manager and the Investment Manager.

 

MER

The Management Expense Ratio (“MER”) is the sum of all operating expenses, including management and service fees but excluding portfolio transaction costs, expressed as a percentage of average net asset value.

 

Inception Date

02/25/2022

 

Manager

Mulvihill Capital Management Inc.

 

Documentation

Date:      Type:      Description
June 03, 2022 Press Release CBNK: Declares Monthly Fund Distribution
May 04, 2022 Press Release CBNK: Declares Monthly Distribution
April 04, 2022 Press Release CBNK: Declares Monthly Distribution
March 24, 2022 Press Release Declares Monthly Fudn Distribution (updated payable date)
March 23, 2022 Press Release Declares Monthly Fund Distribution
March 02, 2022 IRC Report IRC Report for Mulvihill Canadian Bank Enhanced Yield ETF
February 28, 2022 Press Release Mulvihill launches Mulvihill Canadian Bank Enhanced Yield ETF
February 14, 2022 Fund Fact ETF Facts - Units (English)
February 14, 2022 Fund Fact ETF Facts - Units (French)
February 14, 2022 Prospectus Final Prospectus (English)
February 14, 2022 Prospectus Final Prospectus (French)

Administration & Governance

Introduction

Mulvihill Capital Managent Inc. serves as the Manager and the Investment Manager of the Fund.

 

Manager

The Manager is responsible for providing or arranging for the provision of administrative services to the Fund including but not limited to:

  • authorizing the payment of operating expenses incurred on behalf of the Fund,
  • preparing financial statements and other accounting information,
  • ensuring that unitholders are provided with annual and semi-annual reports and other reports as required by applicable law;
  • ensuring the Fund complies with regulatory requirements;
  • calculating and arranging for the payment of distributions;
  • negotiating any contractual agreements with third-party providers of services to the Fund, including auditors, printers, registrar and transfer agent
  • Overseeing and paying quarterly and annual redemptions;
  • Maintaining the website and ongoing communication with investors.

The Management fee payable to the Manager includes any amount payable to the Investment Manager.

 

Investment Manager

The Investment Manager is responsible for making all investment decisions and managing the call option writing program in accordance with the investment objectives, strategies and restrictions of the Fund. Fees for the provision of investment management services are included in the management fee.

The Investment Manager has an asset mix committee consisting of senior members of the firm. The investment process for the Fund begins at the asset mix committee. Members of this committee meet monthly to examine macro-economic variables and relationships among dominant economic factors. This process culminates in an outlook for the various capital markets around the world and provides the Fundamental basis for Mulvihill’s long-term market outlook. These views are integrated into the investment decision making process at the portfolio management level. The asset mix committee of Mulvihill oversees investment decisions made by the portfolio managers of the Fund.

 

Independent Review Committee

The Fund has established an Independent Review Committee (“IRC”) in accordance with National Instrument 81-107 – Independent Review Committee for Investment Funds (“NI 81-107”) which is comprised of three members who are independent of the Manager. The mandate of the IRC is to review and provide its decisions to the Manager regarding any conflict of interest matters relating to its management of the Fund that the Manager has identified and brought to the committee.

A conflict of interest matter is a situation where a reasonable person would consider the Manager or an entity related to it to have an interest that may conflict with the Manager’s ability to act in good faith and in the best interests of the Funds and Securityholders. Click here for the IRC Report to Securityholders.

Click here to review members of the IRC.

 

Advisory Board

The Fund has established an Advisory Board to assist the Fund in the provision of services by the Manager and the Investment Manager and to provide oversight of these activities. The Advisory Board consists of five members, three of whom are independent of the Manager and Investment Manager. The three independent members of the Advisory Board are also members of the Independent Review Committee. The Advisory Board includes an audit committee whose mandate is to review the annual and semi-annual financial statements and discuss any issues with the auditors.

 

Trustee and Custodian

Trustee: Mulvihill Capital Management Inc.
Custodian: RBC Investor & Treasury Services

 

Registrar and Transfer Agent

TSX Trust

 

Legal Counsel

Osler Hoskin & Harcourt LLP

 

Auditors

Deloitte & Touche LLP

Financial & Regulatory

 

The Fund has adopted the proxy voting guidelines with respect to the voting of proxies received by it relating to voting securities held by the Fund. The proxy guidelines establish standing policies and procedures for dealing with routine matters, as well as circumstances where deviations may occur from such standing policies. Click here for proxy guidelines.

The Fund has retained ISS Governance Services to administer and implement the proxy guidelines for the Fund. Click here to review the proxy voting record.