Top-down macro view, bottom-up security selection
60% MSCI (Developed) World Energy TR Index
40% MSCI (Developed) World Materials TR Index
Strategy Inception Date
The Macro Environment for Commodities (August 31, 2011)
Watch Bob Lyon, CFA, Portfolio Manager, AGF Investments America Inc. discuss the current macro environment for commodities and his positive outlook going forward.
Natural Resources - Beyond the Super Cycle (July 06, 2011)
Watch Bob Lyon discuss the supply/demand fundamentals within the resources sector and the key drivers that make investing in resource equities a compelling, long-term opportunity for investors.
|Watch Video Length: 4:06||Watch Video Length: 7:09|
We believe successful investing in the commodities market is achieved by combining a global analysis of the macroeconomic environment, together with a disciplined fundamental stock selection process, to uncover the world's best natural resource opportunities.
Our investment process is a continuous cycle that analyzes the macroeconomic environment in order to determine the outlook for the major individual commodities. Within this framework, individual stocks are then selected for the portfolio using in-depth fundamental research.
Fundamental Research: The bottom-up element of the investment cycle strives to create a portfolio that is comprised of the companies with the best combination of three key attributes: asset quality, management quality, and stock valuation.
- Narrowing the Eligible Universe
A preliminary liquidity and country filter takes an initial 4,000+ universe of resource equities down to approximately 1,000 companies. A continual fundamental assessment process looking for asset quality and strong management capability further narrows the field to approximately 400 names. This process is largely based upon direct meetings with management, drawing upon decades of experience in the resource business.
- In-depth Fundamental Research
Fundamental research provides a formal thesis for potential portfolio candidates. The in-depth research includes a detailed review of a) the management team, b) the quality and growth potential of the assets and reserves, c) competitive positioning, d) the company financials, and e) the company's valuation.
On-going Portfolio Review: The team continuously strives to create a portfolio that combines the optimal sector profile with the best quality companies. The portfolio is typically comprised of 70% large and mid-cap companies, along with 30% smaller, early-stage growth companies.