The AGF Global Sustainable Growth Equity Strategy utilizes a rigorous investment process to identify reasonably priced growth securities with long-term capital appreciation potential. The AGF Global Sustainable Growth Equity Strategy then focuses on specific investment opportunities within four key themes where innovative solutions are being applied to critical environmental issues. This offers investors exposure to high-growth environmental themes and catalysts. The catalyst is usually a technology or product that offers a definable environmental advantage that has not been reflected in the share price.
The Strategy's investment process
Martin Grosskopf explains his investment philosophy and the global themes he is currently focused on.
The trends behind sustainable investing
Martin Grosskopf discusses the trend behind fossil fuel divestment as investors diversify away from carbon risk and become more engaged with companies that are providing solutions to dramatically reduce emissions.
The investment process is based on a fundamental bottom-up approach. Four environmental mega themes are used to establish the investment universe. Within this universe, the team seeks out opportunities that either provide exposure to high-growth environmental themes or ‘catalysts’, or that have been identified within the undervalued segments of a particular industry’s value chain. Typically, the catalyst is technology or product-related and is a definable environmental advantage, or the catalyst is expected to have an impact within 18 months. Idea generation efforts are focused on two areas: fundamental strength and free cash flow.
Fundamental strength is examined from the perspective of proprietary long-term competitive advantages, which can take one of several forms:
Once a list of candidates is identified, the team conducts a comprehensive assessment of the security’s future performance potential. This process includes discussions with company management, to develop a deeper understanding of its business strategy and the stability of its business model. Using internal and third party research, the portfolio manager assesses security valuation by determining the underlying financial quality, profitability, balance sheet strength, earnings quality and cash flow.
Our portfolio construction process is driven by our bottom-up security selection process. Our portfolios represent the portfolio manager’s best ideas and reflect conviction on a security and sector level.
AGF Global Sustainable Growth Equity Strategy offers investors access to four macro themes, within which market-relevant subthemes are identified.
|ENERGY & POWER TECHNOLOGIES||WASTE MANAGEMENT & POLLUTION CONTROL||WATER & WASTEWATER SOLUTIONS||ENVIRONMENTAL HEALTH & SAFETY|
*Does not provide investment advice or recommendations.