Middlefield Announces Intent to Revise Names and Reduce ESG Limits on Two ETFs Via Investing.com
TORONTO, Nov. 28, 2024 (GLOBE NEWSWIRE) — Middlefield Limited (the Manager), the manager of the Middlefield Sustainable Global Dividend ETF (TSX:MDIV) and the Middlefield Sustainable Infrastructure Dividend ETF (TSX:MINF) (collectively, the Funds), announces its intention to de-emphasize environmental, sustainability, and governance (ESG) factors related to MINF and MDIV by revising the names, investment objectives and strategies of the Funds. There will be no change in the labels of the Bags. Although the Funds will continue to consider ESG criteria when selecting their portfolio issuers, they will no longer prioritize these factors over others such as valuation, growth projections, and the quality and track record of the management team. The Manager believes that these changes will expand the Fund’s overall investment environment, which may lead to better returns for investors.
| Tick Mark | Current Name | Revised Name |
| MDIV | Company Middlefield Sustainable Global Dividend ETF | Shares of Middlefield Global Dividend Growers ETF |
| The MINF | Middlefield Sustainable Infrastructure Dividend ETF share price | Shares of Middlefield Global Infrastructure Dividend ETF |
The manager notes that similar efforts to de-emphasize ESG factors have been made by many asset management companies, including BlackRock (NYSE: ), State Street (NYSE: ), JPMorgan, and Pimco. Recent research from Morningstar has shown that many funds are moving away from adding ESG directives to their investment practices. On March 7, 2024, Canadian Securities Administrators introduced three categories of ESG-Related Funds: ESG Purpose Funds, ESG Strategy Funds, and ESG-Based Consideration Funds. Each category has different expectations about emphasizing ESG factors in investment decisions. The Manager believes that the proposed changes will result in the Funds moving from the ESG Objective Funds category to the ESG Limited consideration category.
Special meetings of unitholders in the Funds will be held on or about January 30, 2025, at which time holders of record as of December 23, 2024 will be asked to approve the revision. Further details of the meeting, including proposed changes to investment objectives and strategies, will be provided in an information circular that will be distributed to unitholders in the Fund prior to the special meeting. If approved, the changes will be reflected in the Funds’ renewal Prospectus filing, which is expected to occur in late March 2025.
About Middlefield
Founded in 1979, Middlefield is a professional equity asset manager with offices in Toronto, Canada and London, England. Our investment team uses active management to select the best global companies in a variety of sectors and themes. Our product offerings include proven dividend-oriented strategies including real estate, healthcare, innovation, infrastructure, energy, diversified income and more. We offer these solutions through a variety of product types including ETFs, Mutual Funds, Dividend Funds, Closed-End Funds and Flow-through LPs.
For more information, please visit our website at www.middlefield.com or contact Nancy Tham in our Sales and Marketing Department at 1.888.890.1868.
This press release contains forward-looking information.. Any statements that express or involve discussions about forecasts, expectations, beliefs, plans, intentions, assumptions, objectives, assumptions or future events or performance (usually, but not always, using words or phrases like with “anticipate”, “anticipate”, “expects”, “plans”, “estimates” or “intends” (or negative or grammatical variations), or implying that certain actions, events or results “may”, “possible”, “possible” or “will be taken, occur or achieved) are not statements of historical fact and may be forward-looking statements. Statements that may constitute forward-looking statements relate to: the objectives and strategies of the changes and the potential benefits of such changes; and the holding of the meeting. Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those expressed in forward-looking statements including due to changes in the general economic and political environment, changes in applicable law, and the performance of each fund. Additional risks, uncertainties and other factors that may affect actual results are described under Risk Factors in the ETFs’ prospectus and other documents filed by the ETFs with Canadian securities regulatory authorities. The forward-looking information contained in this press release includes the current rating of ETFs, as of the date of this press release, with respect to the matters addressed herein. Investors and others should not assume that any forward-looking statement contained in this press release represents the ETF’s average as of any date other than the date of this press release.
Source: Middlefield Sustainable Global Dividend ETF
