Pro-Financial Asset Management Inc. is rolling out its latest product, Pro FTSE NA Dividend Index Fund, the Oakville, Ont.-based company said Friday.

The fund will track an index, custom designed and developed by FTSE Group, that applies a screening methodology to focus the index on securities with the highest forecasted dividend yields. Based on the FTSE Custom North American Dividend Index, the new fund is designed to provide monthly income to investors through a portfolio of North American dividend paying securities.

The composition of the fund will include 35 constituents of the FTSE RAFI Canada Index and 15 constituents of the FTSE RAFI US 1000 index, with each security equally weighted on the annual rebalance date. A monthly distribution will be paid as dividend income and return of capital. To minimize currency risk, the fund will hedge its U.S. dollar exposure.

Other highlights of the fund include:
> 5% targeted annual yield at launch
> 70% Canadian dividend securities, 30% U.S. dividend securities at rebalance
> Distributions will commence Jan. 31, 2011

“We have enjoyed great success in our partnership with FTSE Group, and we are very proud to launch a new fund based on a custom built index,” says Pro founder and CEO Stuart McKinnon.

“The Pro FTSE NA Dividend Index Fund selects the 50 highest forecast dividend yielding companies from the Canadian and U.S. FTSE RAFI indices. This unique methodology is designed to generate a high level of income, and provide investors with some protection from market bubbles by underweighting overpriced stocks and placing greater emphasis on undervalued companies.”

IE