This is the interest that has been earned, but not yet received. It is normally applicable to bonds or debentures.
Is structured as a corporation that issues different classes of shares. In the group, the classes of shares are in the form of a number of mutual funds. The ultimate benefit of the group's unique class structure is that rebalancing your portfolio does not attract immediate tax implications when switching between the classes or shares.
Converting from one class of shares to another within the group does not trigger capital gains. Capital gains are only realized when you leave the group or when a capital gains dividend is paid. By deferring capital gains in this fashion, you can benefit from the additional compounding of investment income. Capital gains dividends, which may be paid from time to time, may reduce the tax deferral benefits.
Annual turnover rate (or Portfolio turnover rate) refers to whether or not a mutual fund uses a "buy and hold" strategy. It indicates how often a mutual fund buys or sells securities. An annual turnover rate of 100% is the same as the portfolio manager buying and selling all of the securities in the portfolio once during the year. There is not necessarily a relationship between the turnover rate and fund performance for the year.
Annualized Yield is the annual distribution divided by the dividend received on a security expressed as a percentage of the current market price.
An annuity is a contract that provides monthly income payments in return for your investment of a principal sum of money. Annuities are offered primarily through life insurance companies. Annuities are not offered by AGF.
This is the planned percentage distribution of your investment assets into categories such as reserves, fixed income and equities. The percentage split between stocks, bonds and cash is indicated on the AGF Performance update.
Non-redeemable units of a fund that have been offered to a financial institution as collateral for a loan. Some assignees (lender) allow switches, others do not. AGF can assign a specific dollar amount, share amount or a complete fund. Assignments are not permitted on registered or locked-in plans.
The percent profit your portfolio is making on a yearly basis. If the report period is shorter or longer than a year, the average annual return is converted to an annual rate.
The average time to maturity of securities (i.e. bonds) held by a mutual fund. Changes in interest rates have greater impact on funds with longer average maturity
A beta is a mathematical indicator that ties price movements of individual funds to the movements of a financial market benchmark, such as the TSX 300 Index. If a fund's beta equals 1, the unit price of that fund will fluctuate in step with the market. If a fund's beta is less than 1, that fund's unit price will tend to fluctuate less than the market. Finally, if the fund's beta is greater than 1, the fund's price will fluctuate more than the market.
A committee elected by the shareholders of a corporation, empowered to act on their behalf in the management of corporate affairs. Directors are normally elected each year at the annual meeting.
With a focus on individual securities, this style relies on a detailed analysis of companies and their securities. The goal is to find investments that represent good value - which means an attractive current price and income stream.
The book value is calculated by subtracting total liabilities from total assets. It is also called equity or shareholders equity. In a mutual fund account this equals purchases plus reinvested distributions minus any withdrawals or fees. Book value per share is calculated by dividing the total book value by the number of shares outstanding.
A federal crown corporation set up to protect deposited money in financial institutions in case of their failure. Mutual funds are not protected by the CDIC. AGF Trust GICs are protected under the CDIC.
Formerly known as Revenue Canada. Their role is to promote and enforce compliance with Canada's tax regulations and provide communications etc. Their Web site is www.cra-arc.gc.ca and their TIPs line is 1-800-959-8281.
Capital gain results when a capital property is disposed of at a sale price greater than its cost. A capital loss is the opposite, where capital property is disposed of at a sale price less than it's cost. Capital gains are currently taxed at 50% of the taxpayer's marginal rate and must be reported in the year in which they are incurred. Capital losses are used to offset any capital gains.
A mutual fund or investment that no longer permits new units to be purchased after a specified date. For example, AGF Canadian Asset Allocation Service (948/218) was capped on September 25, 1998.
A document in which a corporation's board of directors states who is authorized to act on behalf of the corporation. This is required for any corporate non-registered investment plan at AGF. If the account-holder of a non-registered plan is an organization or a club then a document is required indicating who has signing authority for that account in order to transact.
Annual income (interest or dividends) divided by the current price of the mutual fund. The current yield is not the annual yield (compounded) rather it is a month-by-month yield.
A bond unsecured by any pledge of property. It is supported by the general credit of the issuing corporation.
A per-share payment designated by a company's board of directors to be distributed among shareholders. For preferred shares, it is generally a fixed amount. Dividends for tax purposes are grossed up to 125% and the dividend tax credit is applied 13.33%.
A sales charge levied when mutual fund units are redeemed, as opposed to the front-end load, which is levied when mutual funds are purchased. AGF's current DSC Schedule & Policy is outlined in the AGF Simplified Prospectus. The amount of the load or charge the annuitant pays upon redemption declines each year on the anniversary date of the purchase, and after a certain number of years there is no charge to redeem.
Is the amount that an account holder may withdraw each calendar year without deferred sales charges being applied. It does not carry-forward (cumulate) into the next calendar year. In order to have 10% DSC free you must have the account's distribution option as 'reinvest'. DSC free is offered on a per fund basis. Information on DSC free is available in the AGF Simplified Prospectus.
An effective yield is a bond's yield when interest payments have been reinvested. It is a compounded yield and the net interest rate an investor receives (or a borrower pays) after the premium of a cap or floor is added to or subtracted from the contractual rate of interest.
An account holder has two options for payment from their AGF account upon withdrawal. One is a cheque mailed to the address on file for that account holder (or signature guaranteed request to be sent to another address), the second is to have the proceeds sent EFT to their bank account. In order to request the second option, the account holder needs to provide AGF with banking information (usually a pre-printed void cheque in which the address matched the address AGF has on file- otherwise a signature guarantee will be required). EFT usually takes three to five business days to be released into the bank account.
This is the commission negotiated between the dealer representative and the investor. It is charged to the investor at the time of the purchase. Therefore, the purchase is net of the commission paid to the dealer representative and the redemption is without a load or commission charge. The front-end commission is 0-6% for all funds, with the exception of money market which is 0-2%.
Growth investors use this style to purchase stocks from companies that they believe demonstrate above average earnings and sales growth. It is considered a more aggressive investment approach than value investing.
