XTF launches Canadian convertible ETF, to begin trading Tuesday

By Susanna Moon

Chicago, June 6 - XTF Capital Corp. said it created Canada's first convertible bond exchange-traded fund, the Canadian Convertible Liquid Universe ETF.

Criteria for inclusion in the convertible bond portfolio will be:

• Minimum market capitalization outstanding of C$50 million;

• Minimum trailing 30-day average daily volume traded of C$150,000;

• Publicly traded on a stock exchange in Canada;

• Not currently in default of payment of either interest or principal; and

• At least 31 days to maturity, either term or next call.

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, according to a press release.

The fund will begin trading on the Toronto Stock Exchange on Tuesday under the symbol "CXF" for its common units and "CXF.A" for its adviser units.

XTF Capital, a First Asset Co., is based in Toronto. First Asset is a Canadian wealth management company.

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