TORONTO – Mulvihill Capital Management Inc., trustee and manager of the Mulvihill ETFs, a division of Mulvihill, announced that Mulvihill Canadian Bank Enhanced Yield ETF has closed its initial public offering of units and will begin trading today, February 28, 2022, on the Toronto Stock Exchange under the ticker symbol “CBNK”.
The investment objectives of CBNK are to provide the holders of Units with long-term capital appreciation through exposure to a portfolio consisting principally of the common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, and The Toronto-Dominion Bank and monthly cash distributions. CBNK is considered to be an “alternative mutual fund” under National Instrument 81-102 Investment Funds and will employ modest leverage of approximately 25% of its net asset value.
To generate additional income above the dividends earned on the equity securities included in its portfolio, CBNK will write covered call options and/or cash-covered put options on a portion of the securities in its portfolio.
Mulvihill is a Canadian investment manager specializing in enhanced yield equity strategies. The firm was founded in 1995, making it one of the oldest and most experienced managers of option-related strategies in Canada. The current team of six portfolio managers at Mulvihill have over 140 years of industry experience. The firm services retail, high net worth and institutional clients through mutual funds, ETFs, and separately managed accounts.