Evolve Funds Group Inc. (“Evolve ” or the “Manager “) is pleased to announce that Evolve Canadian Utilities Enhanced Yield Index Fund (“UTES ” or the “Fund “) has closed its initial offering of units and will begin trading on the Toronto Stock Exchange (“TSX “) today under the ticker symbol: UTES .
UTES seeks to replicate, to the extent reasonably possible before fees and expenses, up to a 1.25 times multiple of the performance of the Solactive Canada Utility Index, or any successor thereto (the “Index”), while mitigating downside risk. The Evolve Fund invests primarily in the equity constituents of the Index. To enhance yield, as well as to mitigate risk and reduce volatility, the Evolve Fund will employ a covered call option writing program at the discretion of the Manager.
“With over $7 billion in assets, we are excited to announce another addition to our growing lineup of covered call funds,” says Raj Lala, President and CEO at Evolve ETFs. “Utilities are a staple in Canadian portfolios, offering stable dividends, low volatility, and long-term growth potential. In today’s market environment, characterized by economic uncertainty, market volatility, and declining interest rates, we believe utilities can be a valuable addition to client portfolios. UTES will employ our actively managed covered call strategy and modest 25% leverage to provide investors with enhanced, tax-efficient income.”