TORONTO, ONTARIO--(Marketwired - Oct. 22, 2013) -
NOT FOR DISSEMINATION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE UNITED STATES OF AMERICA.
Building on the success of its top performing exchange traded funds(1) (ETFs) powered by Morningstar Canadian equity indices, First Asset Investment Management Inc. (First Asset), an independent Canadian investment management company, is pleased to announce the launch of two new equity ETFs replicating Morningstar U.S. equity indices, which will commence trading today on the Toronto Stock Exchange (TSX): First Asset Morningstar US Momentum Index ETF (TSX:YXM) and First Asset Morningstar US Value Index ETF (TSX:XXM).
XXM and YXM replicate indexes that apply Morningstar CPMS rules-based methodologies that are similar to those used in both First Asset Morningstar Canada Value Index ETF (TSX:FXM), which has a 28.8% 1-year return (21.3% S.I.), and First Asset Morningstar Canada Momentum Index ETF (TSX:WXM), which has a 17.9% 1 year return (15.9% S.I.)(2).
Starting today, Canadian investors will be able to tap into the breadth, depth and diversification potential of the U.S. market with these offerings that have been designed to replicate, to the extent possible, the performance of the Morningstar® US Momentum Target 50 Index™ and Morningstar® US Value Target 50 Index™, as applicable, net of expenses.
YXM has been designed to provide diversified exposure to the top 50 U.S.-based equities that demonstrate, among other things, positive momentum in earnings and price. XXM provides diversified exposure to the top 50 U.S.-based equities that are, among other things, considered to be "good value" based on characteristics like low price-to-earnings and low price-to-cash flow ratios.
These ETFs will be denominated in Canadian dollars but will be offered in hedged and un-hedged versions to provide investors with the flexibility to choose whether they want exposure to the U.S. currency. These ETFs will also offer Advisor Class units in both hedged and un-hedged versions.
"As a result of the success of our First Asset Morningstar Canada Value and Canada Momentum Index ETFs launched last year, investors have been asking us to deliver U.S. equivalents that leverage the same proven methodologies and strategies," said Barry Gordon, President and CEO of First Asset. "At First Asset, we are committed to developing solutions that aim to deliver superior risk-adjusted returns, and we are pleased to add these U.S. Equity ETFs to our product portfolio."
"We are delighted to expand our relationship with First Asset by licensing the Morningstar US Momentum and US Value Indexes for exchange-traded funds," said Sanjay Arya, head of Morningstar Indexes. "These indexes incorporate the highly regarded investment research of Morningstar CPMS, an equity research platform that has served investment professionals for almost 30 years."
In addition to the launch of YXM and XXM, First Asset is pleased to announce that un-hedged Common and Advisor Class units of First Asset Morningstar US Divided Target 50 Index ETF (UXM) will also commence trading today on the TSX under ticker symbols UXM.B and UXM.D, respectively. UXM seeks to replicate the performance of the Morningstar® US Dividend Target 50 Index. This Index applies Morningstar's CPMS methodology to screen for the top 50 dividend-paying, U.S.-based equities that have, among other things, above-average returns on equity and high cash flows relative to debt.
Today's announcement comes as part of a long line of product innovations from First Asset, which has a track record of market "firsts" in Canada: the first convertible bond ETF, the first Canadian ETFs that track Morningstar indexes, the first Quebec-based ETF, the first ETFs to employ a barbell bond strategy, and the first broad Provincial bond ETF.
U.S. Equity ETFs launched today:
|Name of ETF
||TSX TICKER SYMBOL
|First Asset Morningstar US Momentum Index ETF
||YXM (Hedged Common units)
YXM.A (Hedged Advisor Class units)
YXM.B (Unhedged Common units)
YXM.D (Unhedged Advisor Class units)
|First Asset Morningstar US Value Index ETF
||XXM (Hedged Common units)
XXM.A (Hedged Advisor Class units)
XXM.B (Unhedged Common units)
XXM.D (Unhedged Advisor Class units)
New units of First Asset Morningstar US Dividend Target 50 Index ETF launched today:
||TSX TICKER SYMBOL
|Unhedged Common units
|Unhedged Advisor Class units
UXM (in respect of the Unhedged Common units and Unhedged Advisor Class units only), XXM and YXM have closed the initial offerings of their units and the units will begin trading on the Toronto Stock Exchange when it opens this morning.
For more information about these ETFs, please visit www.firstasset.com.
About First Asset
Founded in 1996, First Asset is a Canadian, independent investment management company that manages and administers in excess of $2.6 billion in assets. First Asset offers a diverse range of investment products including ETFs, mutual funds and other exchange listed investment funds, covering a variety of domestic and global mandates. www.firstasset.com.
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offers an extensive line of products and services for individuals, financial advisors, and institutions. Morningstar provides data on approximately 433,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on nearly 10 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its registered investment advisor subsidiaries and has approximately $166 billion in assets under advisement and management as of June 30, 2013. The company has operations in 27 countries.
This communication is intended for informational purposes only. The ETFs are offered by prospectus. The prospectus contains important detailed information about the ETFs and their units. Copies of the prospectus may be obtained from your investment advisor, First Asset or at www.sedar.com. Investors should read the prospectus before making an investment decision. Commissions, trailing fees, management fees and expenses all may be associated with investments in the ETFs.
(1) Top performing ETFs - Source: Morningstar.ca. The performance ranking is solely based on 1 year total return performance for FXM and WXM as at September 30, 2013 in the Canadian Equity category for ETFs and mutual funds. The Canadian Equity category has 31 funds in the ETF group, and 448 funds in the mutual fund group at September 30, 2013. The Funds' performance is subject to change every month.
(2) Performance is as at September 30, 2013. Inception Date for FXM and WXM is February 15, 2012. Source: Morningstar®
The indicated rates of return are the historical annual compound total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or operational charges or income taxes payable by any security holder that would have reduced returns. The ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Performance is calculated net of all fees. The performance information shown is for Common units of the ETFs, and may not be indicative of the performance of other series of the same ETF. Variations in performance data among various series of the same ETF is due to differences in fees and expenses attributed to each series. The ETFs are managed by First Asset Investment Management Inc.
Morningstar and the Morningstar logo are registered trademarks of Morningstar, Inc. and have been licensed for use for certain purposes by First Asset Investment Management Inc. These ETFs are not sponsored, endorsed, sold or promoted by Morningstar or any of its affiliates (collectively, "Morningstar"), and Morningstar makes no representation regarding the advisability of investing in the ETFs.
First Asset is an independent Canadian investment management company focused on delivering superior risk-adjusted investment returns to Canadian investors and their investment advisors. Founded in 1996, First Asset is a leading manager of ETFs, mutual funds, and closed end funds in Canada.