Growth & High Income

A Smart Balance

Growth Opportunities and High Monthly Cash Distributions from Canada’s First Balanced Covered Call ETF.

3

Balanced Growth + Tax Efficient Income with Covered Calls

These portfolios deliver growth and income through equity income and fixed income ETF holdings. Blending the traditional balanced portfolio with a covered call writing strategy to offer high monthly cash distributions while delivering growth.

HBIG | Harvest Balanced Income & Growth ETF

Harvest Balanced
Income & Growth ETF

LAST DISTRIBUTION

$0.16

Cash, Per Unit

Harvest Balanced Income
& Growth Enhanced ETF

LAST DISTRIBUTION

$0.20

Cash, Per Unit

Balanced Growth + Tax Efficient Income with Covered Calls

In Canada, there was $979 billion in balanced mutual funds at the end of October 2024.
(Source: IFIC)

Canadian investors in search of a balanced ETF with monthly and high cashflows from a covered call strategy, now has HBIG.

Components of the Smart Balanced ETF

60% Equity Income ETFs

Harvest Equity Income ETFs invest in companies that are well-established, with strong balance sheets and consistent earnings growth.

40% Fixed Income

Harvest Fixed Income ETFs cover the entire maturity spectrum with short, intermediate, and long duration options.

Harvest Covered Call Strategy

Harvest ETFs market leading call option strategy generates monthly cashflows from a portfolio of equity and fixed income securities.

Canada’s Only Balanced ETF Primarily Focused on Covered Calls

%

8 Equity Income ETFs

  • EExposure to Harvest Equity Income ETFs
  • ECore equity income + growth – Up to 33% covered call writing
Tickers ETF Names Weight
HTA Harvest Tech Achievers Growth & Income ETF 11.9%
HHL Harvest Healthcare Leaders Income ETF 11.7%
HUTL Harvest Equal Weight Global Utilities Income ETF 8.8%
HLIF Harvest Canadian Equity Income Leaders ETF 8.6%
HGR Harvest Global REIT Leaders Income ETF 8.4%
HUBL Harvest US Bank Leaders Plus Income ETF 4.9%
HIND Harvest Industrial Leaders Income ETF 4.9%
HPF Harvest Energy Leaders Plus Income ETF 2.6%

%

5 Fixed Income ETFs

  • EOffers exposure to Harvest fixed income ETFs
  • EOn select ETFs, Harvest will employ up to 100% covered call writing
Tickers ETF Names Weight
Covered Call:
HPYM Harvest Premium Yield 7-10 Year Treasury ETF 14.2%
HPYT Harvest Premium Yield Treasury ETF 10.6%
No Covered Call:
ZPS BMO Short Provincial Bond Index ETF 4.9%
XSB iShares Core Canadian Short Term Bond Index ETF 4.9%
TBIL Harvest Canadian T-Bill ETF 3.2%
Cash and other assets and liabilities 0.2%

As at November 29, 2024

Michael Kovacs

President & CEO

Harvest ETFs

Balanced ETFs Q&A

Why did you choose to launch a balanced ETF?

Most current balanced funds in the Canadian market provide income at levels below inflation rates and have distribution frequencies that are mostly quarterly and annually. The Harvest Balanced Income & Growth ETF aims to produce and deliver high monthly income while providing access to a 60/40 balanced portfolio for steady growth.

How will HBIG deliver value to its Unitholders?

HBIG will provide unitholders with monthly cash distributions and the opportunity for capital appreciation by investing, on a non-levered basis, in a portfolio of exchange traded funds that are listed on a recognized North American stock exchange.

This ETF provides exposure towards large capitalization equity securities, investment grade bonds or money market instruments issued by corporations or governments and will include ETFs that engage in covered call strategies. HBIG will invest up to 75% of its net assets ETFs that make use of covered calls.

What is the Harvest Balanced Income & Growth Enhanced ETF? How does it differ from HBIG?

Some investors are seeking more income and potentially higher returns. For these investors, we launched the Harvest Balanced Income & Growth Enhanced ETF ( HBIE). This ETF aims to provide higher levels of income and returns using a 25% leverage on a portfolio that replicates HBIG.

These ETFs trade on the TSX with ticker symbols HBIG for Harvest Balanced Income & Growth ETF and HBIE for Harvest Balanced Income & Growth Enhanced ETF.

Why Harvest ETFs?

Harvest ETFs has stood out for over 15 years since its founding for its covered call writing. The philosophy of wealth creation and preservation through investment in leading businesses, long-term growth industries, or secular trends guides the composition of all Harvest ETFs. Our Balanced Income ETFs aim to deliver steady monthly income with capital appreciation with lower volatility.

The Smart Balance

The Harvest Balanced Income & Growth ETF seek to provide unitholders with high monthly cash distributions and the opportunity for capital appreciation. It invests, on a non-levered basis, in a portfolio of ETFs that are listed on a recognized North American stock exchange that provide exposure towards large capitalization equity securities, investment grade bonds, or money market instruments issued by corporations or governments. Moreover, it includes ETFs that are engaged in covered call strategies.

HBIG | Harvest Balanced Income & Growth ETF

Harvest Balanced
Income & Growth ETF

Harvest Balanced Income
& Growth Enhanced ETF

  • Simple and efficient way to invest in a 60/40 portfolio
  • High monthly cash flows from covered calls in a balanced portfolio
  • Diversified portfolio of high quality large-cap equities and investment grade bonds with covered calls
  • Tactical asset allocation
  • Steady monthly cash distribution

Key Facts

As at 2024/12/09

TICKER

HBIG

TSX
CURRENCY

CAD-Hedged

Underlying ETFs
NAV

$24.76

Updated Daily
MKT PRICE CLOSE

$24.74

Updated Daily
HOLDINGS

13

Underlying ETFs
MGMT STYLE

Active

With Covered Calls Underlying ETFs
CASH DISTRIBUTION

Monthly

Frequency
LAST DISTRIBUTION

$0.1600

Cash, Per unit
FIRST DISTRIBUTION

April 30

2024
INCEPTION DATE

April 15

2024

Key Facts

As at 2024/12/09

TICKER

HBIE

TSX
CURRENCY

CAD-Hedged

Underlying ETFs
NAV

$24.85

Updated Daily
MKT PRICE CLOSE

$24.96

Updated Daily
HOLDINGS

13

Underlying ETFs
MGMT STYLE

Active

With Covered Calls Underlying ETFs
CASH DISTRIBUTION

Monthly

Frequency
LAST DISTRIBUTION

$0.2000

Cash, Per unit
FIRST DISTRIBUTION

April 30

2024
INCEPTION DATE

April 15

2024

Key Facts

As at 2024/12/09

TICKER

HBIG

TSX
CURRENCY

CAD-Hedged

Underlying ETFs
NAV

$24.76

Updated Daily
MKT PRICE CLOSE

$24.74

Updated Daily
HOLDINGS

13

Underlying ETFs

MGMT STYLE

Active

With Covered Calls
Underlying ETFs
CASH DISTRIBUTION

Monthly

Frequency
LAST DISTRIBUTION

$0.1600

Cash, Per unit
FIRST DISTRIBUTION

April 30

2024
INCEPTION DATE

April 15

2024

Key Facts

As at 2024/12/09

TICKER

HBIE

TSX
CURRENCY

CAD-Hedged

Underlying ETFs
NAV

$24.85

Updated Daily
MKT PRICE CLOSE

$24.96

Updated Daily
HOLDINGS

13

Underlying ETFs

MGMT STYLE

Active

With Covered Calls
Underlying ETFs
CASH DISTRIBUTION

Monthly

Frequency
LAST DISTRIBUTION

$0.2000

Cash, Per unit
FIRST DISTRIBUTION

April 30

2024
INCEPTION DATE

April 15

2024

Meet the Manager

Paul MacDonald

Paul MacDonald, CFA

Paul MacDonald is the Chief Investment Officer (CIO) at Harvest ETFs and the lead manager for HBIG and HBIE. Paul brings over 20 years of experience in the investment business, with 15 years as a Portfolio Manager. Paul covers select Healthcare companies globally and is the lead Portfolio Manager on the Harvest Healthcare Leaders Income ETF, one of Canada’s largest Healthcare ETFs. Paul also covers select Real Estate companies and plays a key role in formulating Harvest’s overall investment strategy.

Disclaimer

Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds (managed by Harvest Portfolios Group Inc.). Please read the relevant prospectus before investing. The Funds are not guaranteed, their values change frequently and past performance may not be repeated.

Distributions are paid to you in cash unless you request, pursuant to your participation in a distribution reinvestment plan, that they be reinvested into the Class of units that you own of the Fund. If the Fund earns less than the amounts distributed, the difference is a return of capital. Tax, investment and all other decisions should be made with guidance from a qualified professional.

Certain statements included in this communication constitute forward-looking statements (“FLS”, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Funds. The FLS are not historical facts but reflect the Harvest’s and the portfolio manager of the Funds current expectations regarding future results or events. These FLS are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Harvest and the portfolio manager of the Funds believe that the assumptions inherent in the FLS are reasonable, FLS are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Funds, Harvest and the portfolio manager of the Funds undertake no obligation to update publicly or otherwise revise any FLS or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.