CALGARY, Alberta--(BUSINESS WIRE)--
TriVest Wealth Counsel Ltd. announced today the launch of the Canadian High Yield Energy Index (www.CHYE.ca), the first index that tracks the yield and value available in the Canadian energy income sector.
CHYE creates a benchmark for monitoring Canada’s high yield energy sector on an aggregate basis. The index is comprised of TSX listed companies involved in the E&P, Oilfield Services, Energy Infrastructure, and Mid-Stream sectors that currently pay a dividend exceeding 4% per annum. It is a total-return Index that is calculated on a daily basis by Structured Solutions, AG, a leading global index provider based in Frankfurt, Germany.
The Index is rebalanced on a quarterly basis with no company composing greater than 10% of the index, and a minimum free float market capitalization per company of at least $500 million. It includes leading companies such as Crescent Point Energy (CPG.TO), Canadian Oil Sands (COS.TO), and Pembina Pipeline (PPL.TO).
The index is available in real-time via Structured Solutions as well as being provided to third-party providers such as Bloomberg and Reuters.
Martin Pelletier, Portfolio Manager at TriVest Wealth Counsel, said, “Ever since the Federal Government’s decision to tax income trusts back in October 2006 many have simply forgotten about the positive investment merits of the sector. These oil and gas trusts did not go away, instead they have adapted and currently offer some very attractive dividend yields. The sector is also expanding with the larger junior producers targeting to grow into a high-yield dividend structure.”
Until its launch, no industry standard existed for gauging the aggregate performance of the high yielding energy sector, nor did a straightforward means of hedging exist. The index provides a solution for investors to:
1) Benchmark one’s holdings in the Canadian energy income sector, whether against their actively managed mutual fund(s) or individual stock portfolio.
2) Track the overall performance of the sector and its investment merits.
3) Passively invest in the sector that currently is yielding approximately 6% per annum.
Craig Stanford, Portfolio Manager at TriVest Wealth Counsel, added “One of the biggest problems for the individual or institutional investor is in selecting which company in the sector to invest in, which one will have a sustainable dividend given the volatility of the commodity sector. Investing in a low cost high yield energy index provides increased safety through diversification and minimizes stock specific risk while still achieving the goal of a high yield.”
The index also has a strong track record on a back-dated basis to March 18, 2013. It has outperformed the S&P TSX Capped Energy Index over the past five years by 6.8% per annum, generating a 3.5% annualized rate of return (compared to -3.3% annualised loss for the S&P TSX Capped Energy Index).
Interestingly, the CHYE has also outperformed the S&P TSX Composite Index by 1.1% per annum over the same period. Please note that the CHYE’s historical track record is not indicative of future performance.
TriVest Wealth Counsel Ltd. (www.trivestwealth.com) is a Calgary-based private client and institutional investment management firm specializing in discretionary risk-managed balanced portfolios as well as specialty offerings including an oil & gas hedge fund.
The constituents of the index are: Crescent Point Energy Corp. (CPG.TO), Canadian Oil Sands Ltd. (COS.TO), Pembina Pipeline Corp. (PPL.TO), Husky Energy Inc. (HSE.TO), ARC Resources Ltd. (ARX.TO), Inter-Pipeline Fund (TSX:IPL), Penn West Petroleum (PWT.TO), Baytex Energy Corp. (BTE.TO), Vermilion Energy Inc. (VET.TO), AltaGas Ltd. (ALA.TO), Gibson Energy Inc. (GEI.TO), Enerplus Corp. (ERF.TO), Pengrowth Energy Corp. (PGF.TO), Bonavista Energy Corp. (BNP.TO), Veresen Inc. (VSN.TO), Mullen Group Ltd. (MTL.TO), Petrobakken Energy Ltd. (PBN.TO), Bonterra Energy Corp. (BNE.TO), Freehold Royalties Ltd. (FRU.TO), Trinidad Drilling Limited (TDG.TO), Savanna Energy Services Corp. (SVY.TO), Valener Inc. (VNR.TO), Twin Butte Energy Ltd. (TBE.TO), Canyon Services Group Inc. (FRC.TO), and Petrominerales Ltd. (PMG.TO).
Investors can discover more about the CHYE at the Index’s website, www.CHYE.ca. Also please reference the Important Disclaimer at the bottom of the website or at http://www.chye.ca/#!disclaimer/c132t.
- Investment & Company Information
- Energy Infrastructure
Martin Pelletier, 403-536-6444