10:53:57 EST Wed 29 Nov 2023
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Harvest Premium Yield begins trading on TSX

2023-09-28 09:22 ET - News Release

Mr. Michael Kovacs of Harvest Portfolios Group reports


Harvest Portfolios Group Inc. has completed the initial offering of Class A units of Harvest Premium Yield Treasury ETF (exchange-traded fund) pursuant to a prospectus dated Sept. 22, 2023, filed with the securities regulatory authorities in all of the Canadian provinces and territories. The Class A units of the ETF will commence trading on the Toronto Stock Exchange today under the following ticker symbol: HPYT.

The ETF will target a monthly distribution of 15 cents per Class A unit and the first distribution of 15 cents will be paid on or about Nov. 9, 2023, to unitholders of record on Oct. 31, 2023, with an ex dividend date of Oct. 30, 2023. This target distribution rate represents an approximate current annualized yield of 15 per cent based on the opening market price of $12 per Class A unit.

HPYT provides investors with exposure to the U.S. treasury fixed-income market while incorporating a covered call option strategy to generate high levels of monthly income. This ETF aims to combine the safety and strength of investing indirectly in U.S. treasuries with the higher income potential and tax efficiency of covered calls.

"HPYT is a unique fixed-income addition to our lineup. Rooted in U.S. treasury bond ETFs, HPYT provides solid underlying quality, and with our option writing expertise, the ability to generate high levels of income with tax efficiency," said Michael Kovacs, president and chief executive officer of Harvest. "As the largest manager of active covered call strategies in Canada, we take that expertise to a new level with HPYT."

Investment objective

Harvest Premium Yield Treasury ETF will seek to provide high monthly cash distributions to unitholders by investing, on a non-levered basis, in a portfolio of exchange-traded mutual funds, selected by the manager, that provide exposure primarily to longer-dated U.S. treasury bonds and are listed on a regulated stock exchange in North America. Harvest Premium Yield Treasury ETF will generally write covered call options on up to 100 per cent of the portfolio securities. The level of covered call option writing may vary based on market volatility and other factors.

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