First Asset U.S. & Canada Lifeco Income ETF (the "Fund") investment objectives are to provide unitholders with (i) quarterly cash distributions; (ii) the opportunity for capital appreciation; and (iii) lower overall volatility of portfolio returns than would be experienced by owning a portfolio of publicly-traded common equity securities of the ten largest U.S. and Canadian life insurance companies by market capitalization directly.
The Manager believes that the portfolio securities of the Fund are attractive long term investments, but that they may exhibit significant price volatility for the foreseeable future. Accordingly, the Manager believes that an investment strategy which incorporates selling call options to capitalize on this volatility while retaining all the upside on a significant portion of the Fund's portfolio is an attractive risk adjusted way to own a portfolio of such securities.
The indicated rates of return are the historical annual compounded total returns, including changes in unit value and do not take into account sales, redemption or optional charges or income taxes payable by a security holder that would have reduced returns. The Fund was originally launched as a TSX-listed closed-end fund on August 22, 2013, and automatically converted into a TSX-listed exchange traded fund on September 3, 2014, with no change to its investment objectives or management fees. Performance shown is since inception of the closed-end fund.
1 The Current Dividend Yield represents the gross yield on the ETF`s underlying portfolio of securities. It is not the yield or the distribution investors will receive by virtue of an investment in the ETF.