AGF International Advisors Company Ltd. (AGFIA) believes that investing in undervalued companies with strong franchise value will give clients the greatest opportunity to outperform the market over the long term. The team unearths undervalued companies by applying their proprietary 30/30/30 screen.
The European Value Equity investment process employs a fundamental, bottom-up approach:
Quantitative Screens & Research: Quantitative screens for capitalization and liquidity are applied to the European investment universe. The proprietary 30/30/30 value screen identifies attractive companies for monitoring. Companies with strong franchise value are also identified for the Monitoring List through ongoing research.
In-depth Company Research: Analysts conduct company visits and assess the company's balance sheets to evaluate a company's financial stability, competitive position, management quality, and commitment to creating shareholder value. A detailed research report will be produced for all stock recommendations and presented for team discussion and debate.
Portfolio Construction: Solid companies with attractive franchise value are identified as potential candidates for the portfolio. These companies satisfy the 30/30/30 discipline (normally within two years) as well as AGFIA's bottom-up fundamental analysis.