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First Asset launches Energy Giants Covered Call ETF


First Asset Investment Management has launched the First Asset Energy Giants Covered Call exchange traded fund(NXF).  

NXF invests on an equal weight basis in a portfolio of equity securities of the 15 largest non-Canadian oil and gas exploration and production companies measured by USD market capitalisation with common stock or ADRs listed on a Canadian or US stock exchange, and employs a covered call option writing program on approximately, and not more than, 25% of the securities of each portfolio issuer. NXF is designed to provide investors with quarterly cash distributions, the opportunity for capital appreciation and lower overall volatility of returns on the portfolio than would be experienced by owning a portfolio of securities of such issuers directly.   NXF's portfolio will be rebalanced to equal weight at the end of each calendar quarter. Units of NXF are available in currency hedged and unhedged versions.

"NXF represents another example of how First Asset is trying to meet the real world needs of Canadian investors,” says Barry Gordon, President and CEO, First Asset Investment Management Inc. “We excluded Canadian energy producers to avoid replicating exposure that most Canadians already have, and combined equal weighted exposure to the portfolio of energy giants with our 25% covered call writing strategy.  The result is a way to invest in large cap energy companies with the benefits of writing covered call options on a portion of the portfolio – a balance of market participation with option premiums. We believe it represents another smart solution for Canadian advisors to help achieve their clients' objectives.”

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