First Asset launches actively managed European banking ETF

Morningstar Canada 30 July, 2014 | 1:58AM
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First Asset Hamilton Capital European Bank, an actively managed exchange-traded fund that invests in the European banking sector, opened for trading today on the Toronto Stock Exchange.

The portfolio manager is Hamilton Capital Partners, a Toronto investment boutique that specializes in financial-services equities. According to HCP, European banks are heavily discounted, trade well below 2007 levels and "present an attractive, multi-year cyclical opportunity."

Sponsored by First Asset Investment Management Inc., the fund's universe of potential picks includes stocks of all capitalization levels. The portfolio will generally hold a fairly concentrated portfolio of 25 to 35 names, and starts off at the low end of that range.

The management fee for the common units (FHB/TSX) is 0.85%. Also offered are advisor-class units (FHB.A/TSX), which pay trailing commissions totalling 0.75% annually to brokers and charge a correspondingly higher management fee of 1.60%.

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