XTF Capital Corp. Launches Canada's First Convertible Bond ETF - Canadian Convertible Liquid Universe ETF
TORONTO, June 6, 2011 - XTF Capital Corp, a First Asset Company is pleased to announce the launch of Canada's first Convertible Bond ETF - Canadian Convertible Liquid Universe ETF (the "Convertible Bond XTF"). This will mark the fifth exchange-traded fund launched by XTF Capital this month. The Convertible Bond XTF will begin trading on the Toronto Stock Exchange ("TSX") on Tuesday, June 7, 2011 under the symbol CXF (for its Common Units) and CXF.A (for its Advisor Units).
A UNIQUE ETF FROM LARGEST MANAGER OF CONVERTIBLE BONDS
The Convertible Bond XTF is unique to Canada, said Barry Gordon, President and CEO of XTF Capital Corp. and First Asset. Our deep experience with convertible bonds puts XTF Capital Corp. in a position to properly assess the eligible universe and make the subtle decisions for inclusion or exclusion from the portfolio. Mr Gordon also noted that convertible bonds are not uniform in structure and have many different call and conversion features. He added that the Convertible Bond XTF follows a rules-based methodology of portfolio construction, but the Manager must have an override to include or exclude particular bonds in order to capture special situations.
The investment objectives of the Convertible Bond XTF, as further described in the prospectus, are to provide holders with (i) quarterly cash distributions, and (ii) the opportunity for capital appreciation by investing on a capitalization weighted basis in a portfolio (the "Convertible Bond Portfolio") of Convertible Bonds of Canadian issuers. Inclusion of a Convertible Bond in the Convertible Bond Portfolio is based upon the following criteria: (i) minimum market capitalization outstanding of $50 million; (ii) minimum trailing 30 day average daily volume traded of $150 thousand; (iii) publicly traded on a stock exchange in Canada; (iv) not currently in default of payment of either interest or principal; and (v) at least 31 days to maturity (either term or next call).
XTF CAPITAL - A FIRST ASSET COMPANY
XTF Capital's mission is to create the next dimension of exchange-traded funds, and deliver superior risk-adjusted solutions to Canadian investors. First Asset is a Canadian wealth management company that manages and administers approximately $2.6 billion in assets as of May 31, 2011, including approximately $650 million in Convertible Bonds. First Asset offers a diverse range of investment products including exchange-listed investment funds and mutual funds covering a variety of domestic and global mandates.
For further information, please contact Rob MacNiven, Investor Relations, XTF Capital at 1-855-983-3837 or visit www.xtf.ca.
This communication is intended for informational purposes only. Commissions, management fees and expenses all may be associated with investments in exchange-traded funds. Please read the prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated.