First Asset Global Financial Sector ETF began trading on Monday on the Toronto Stock Exchange under the symbol FSF.
The investment objective of the exchange-traded fund (ETF) is to seek long-term total returns consisting of long-term capital appreciation and regular dividend income from an actively managed portfolio composed primarily of securities of issuers in the global financial services sector across developed and emerging markets.
Signature Global Asset Management, a division of Toronto-based CI Investments Inc., is the portfolio manager of the fund. Signature’s John Hadwen, vice president and portfolio manager, is responsible for stock selection for the fund.
Says Hadwen in a statement announcing the fund’s launch: “The global financial services sector is an attractive investment opportunity. Regulatory requirements and impacts have hampered returns over the last number of years. However, with capital requirements seemingly addressed, we anticipate higher valuations and superior dividend growth in the banks compared to other global sectors. As well, consumer finance, brokerage and wealth management sectors are presenting appealing valuations, helping propel the sector forward.”
Hadwen specializes in the global financial services sector and is responsible for stock selection in the sector for Signature Funds, overseeing approximately $5 billion in assets under management. He holds an Honours BA and the Chartered Financial Analyst designation.
“FSF is an actively managed ETF that delivers to investors the benefits of ETFs, including tax efficiency, liquidity, and low cost, while also offering them the expertise and analytical strength provided by Signature’s award winning asset management team,” adds Barry Gordon, president & CEO of Toronto-based First Asset Investment Management Inc.
Prior to converting into an ETF, the fund was a closed-end fund called First Asset Hamilton Capital European Bank Fund. As previously announced by First Asset, the conversion was approved at a special meeting of unitholders held on March 15.
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