Harmony, one of the first managed asset programs in Canada, is a sophisticated and flexible program, designed for discerning investors looking for more. With Harmony, investors receive:
Harmony’s portfolio managers are comprised of industry-recognized leaders in pension and institutional money management as well as boutique asset class specialists from around the world.
AGF Investments selected an independent third party, Wilshire Funds Management, a business unit of Wilshire Associates (Wilshire®)1, to provide advisory services and ongoing due diligence for the Harmony program. They were chosen for their reputation in the institutional space and managed asset arena. Wilshire recommends sophisticated techniques used in many large institutional pension and endowment funds to allocate assets and manage volatility within defined parameters. Their expertise is available to Canadian investors exclusively through AGF.
Choose from seven distinct one-ticket Portfolios or customize your own from multi-manager Pools of investments.
Quarterly asset class reviews are conducted to construct portfolios to maximize long-term returns with lower risk by leveraging Wilshire’s decades of experience working with institutional clients. In addition, Pools and Portfolios are periodically rebalanced so they remain on target to achieve your clients’ long-term goals.
To take advantage of shorter-term market changes, Wilshire will recommend more frequent and opportunistic changes to asset class weightings, using exchange-traded funds (ETFs) in major asset classes for their cost efficiency and liquidity. While still keeping an eye on long-term performance expectations, additional steps are taken to exploit evolving shifts in asset class opportunities with a focus on downside protection.
Your financial goals change over time. With this feature, your advisor helps with evaluating and adjusting the allocations of your portfolios to ensure that they remain consistent with your investment objectives. Get comprehensive updates on any changes, or set up your own rebalancing schedule with your advisor.
Balancing tax efficiency potential with flexibility can be crucial when investing outside of a registered account. The Harmony Corporate Class2 structure is well suited for investors in non-registered plans because it provides investors with:
* A Canadian taxable dividend may also be declared in order to offset certain taxes payable by HTAG.
Harmony Portfolios can provide regular and reliable cash flow for investors seeking income, including tax-efficient return of capital. Series T and Series V3 provide targeted annual payouts that offer the potential for stable longer-term cash flow. Investors also have the potential to reduce their tax liability and defer taxes while growing their savings for the future.
Despite market volatility and record low interest rates, payouts have remained consistent on Series T and V Harmony Portfolios.
|Harmony Portfolio||Corporate Class||Series T||Series V|
|Harmony Yield Portfolio|
|Harmony Balanced Growth Portfolio|
|Harmony Growth Portfolio|
|Harmony Growth Plus Portfolio|
|Harmony Maximum Growth Portfolio|
1 Wilshire Associates is a leading global investment technology, consulting and management firm that provides its Wilshire Funds Management advisory services to AGF Investments Inc. Past performance does not guarantee future return, and processes used may not achieve the desired results. Wilshire is not affiliated with AGF Management Limited or any of its affiliates. Wilshire Fund Management, a business unit of Wilshire Associates Incorporated, uses mathematical, statistical, and quantitative investment processes to allocate assets, select managers and construct portfolios and funds in ways that seek to outperform their specific benchmarks.
2 While the articles of Harmony Tax Advantage Group Limited provide authority to make distributions out of capital and Harmony Tax Advantage Group Limited intends both to calculate capital in the manner contemplated by the corporate statute for corporations that are not mutual fund corporations and only to declare distributions out of capital if there is sufficient capital attributable to a series, no definitive case law exists to confirm that a mutual fund corporation may make distributions of capital and how it is to be calculated. Further, no advance income tax ruling has been requested or obtained from Canada Revenue Agency, nor is AGF aware of any published advance income tax ruling or the possibility of obtaining such a ruling, regarding the characterization of such distributions or the calculation of capital for such purposes.
3 The targeted annual distribution is based on the Fund’s or Portfolio’s previous year-end net asset value and is subject to change. Monthly distributions on Series T and Series V shares may generally be a return of capital so long as there is sufficient capital attributable to the relevant series. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base falls below zero, you will have to pay capital gains tax on the amount below zero.