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AGF U.S. AlphaSector Class
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Get a new way of thinking working in your portfolio

Risk management is critical to achieving investor goals.

1 | Rethink Risk

  • Most investors base their perception of risk on the fluctuating value of their monthly statements. For many, risk is really about, "how much can I lose in a short period of time?"
  • Recovering from an extreme decline in portfolio value can take time and will require a significant market gain to break even again. For example, if you lost 50% in the market, you would have to gain 100% to recover, which at a 9% annual rate of return would take over eight years.

Market setbacks can cost investors and drive many to the sidelines

 Source: Morningstar Direct. Price Return start as of January 1, 2007 and Total Return results to June 30, 2014.

2 | Winning by not losing

The more you lose, the more you need to make up. Avoiding the worst down days is meaningfully more beneficial (in terms of returns) than the penalty that comes from missing the best up days.

Avoiding losses is our number one priority

Source: Morningstar Direct.
The illustration depicts the effect on performance of being out of the S&P 500 Index on the days of the Index’s worst performance. It is based on all of the trading days between April 1, 1994 to June 30, 2014. Past performance is no indication of future results and is not indicative of Fund results.

3 | How AGF U.S. AlphaSector Class can help

AGF U.S. AlphaSector Class was designed to meet the real needs of investors by employing risk-control strategies in down markets while still participating in up markets. The Fund:

  • is a portfolio of equally weighted U.S. sectors
  • can be allocated anywhere from 100% to 0% in equities
  • employs technical analysis and a proprietary quantitative model
  • focuses on absolute, rather than benchmark-relative return

AGF U.S. AlphaSector Class - Response Across the Market Cycle

For more on this Fund and other solutions that can help preserve on the downside please check out www.agf.com/rethinkrisk.



Supporting materials

An overview of the solution the Fund addresses and how it works to fully participate in U.S. equity market advancement and defend against market setbacks.
Market setbacks can be difficult to recover from. This piece looks at market risk from the investor's perspective and introduces how investors can win by losing less.
An introduction to F-Squared Investments - portfolio advisor to AGF U.S. AlphaSector Class and their investment approach. Included is a bio on Howard Present, President and CEO.
Learn more about AGF U.S. AlphaSector Class.
Test your knowledge about the 2007-2009 market downturn and learn how market setbacks impact your portfolio.
This piece provides an overview of the U.S. opportunity and AGF’s U.S. equity funds.

The information contained in this fund profile is designed to provide you with general information related to investment alternatives and strategies and is not intended to be comprehensive investment advice applicable to the circumstances of the individual. We strongly recommend you to consult with a financial advisor prior to making any investment decisions. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share and/or unit value and reinvestment of all dividends and/or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. The payment of distributions should not be confused with a fund's performance, rate of return or yield. If distributions paid by the fund are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by a fund, and income and dividends earned by a fund, are taxable in your hands in the year they are paid. 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. The performance of a Fund may have been different had events such as mergers, portfolio manager changes and investment objective changes not taken place.

Portfolio Managers / Advisors
President and CEO
F-Squared Investments
REASONS TO INVEST IN THIS FUND

The Fund is designed to participate in rising markets while placing an emphasis on minimizing drawdown and preserving capital during market declines. It can revert to 100% cash when signals are 'fully' bearish.

INVESTMENT PROCESS

By employing a proprietary quantitative model, the Fund has the flexibility to invest in any combination of the S&P 500 sectors and can introduce cash when remaining sector choices are down to three.

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Date as of 08-31-2014
Performance
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Portfolio Details
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Fund Overview
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Related & Regulatory Documents
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The Fund's MER shall not exceed 2.65% on an after-tax basis, effective August 19, 2013.

¿NOTE: The Top 10 Holdings, Sector Allocation and Asset Mix are as of July 31, 2014. For investment purposes, the Fund combines Telecommunication Services and Information Technology into one holding: Technology Select Sector SPDR. This holding is listed as Information Technology in the Sector Allocation table. In accordance with NI 81-102, performance for a mutual fund that has been available for less than one year cannot be published.

Please refer to AGF.com for distribution information. ˜MER as of March 31, 2014. ¹ The distribution is not guaranteed, may be adjusted from time to time at the discretion of the fund manager and may vary from payment to payment. Amount shown, if any, is the most recent distribution amount. ¤ Cash is not included. Note: numbers may not add up to 100% because of rounding.

›This person acts solely as a portfolio advisor to the Fund. A portfolio advisor provides the Fund with investment research and recommendations. They do not make investment decisions on behalf of the Fund.

The information contained in this fund profile is designed to provide you with general information related to investment alternatives and strategies and is not intended to be comprehensive investment advice applicable to the circumstances of the individual. We strongly recommend you to consult with a financial advisor prior to making any investment decisions. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share and/or unit value and reinvestment of all dividends and/or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. The payment of distributions should not be confused with a fund's performance, rate of return or yield. If distributions paid by the fund are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by a fund, and income and dividends earned by a fund, are taxable in your hands in the year they are paid. 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. The performance of a Fund may have been different had events such as mergers, portfolio manager changes and investment objective changes not taken place.

INVESTMENT PROCESS

Actively managed portfolio that manages risks and targets returns.

  • portfolio of equally weighted U.S. sectors
  • can be allocated anywhere from 100% to 0% in equities.
  • has the flexibility to invest in any combination of the S&P 500 10* sectors
  • sector weights are evenly held, including cash** when it's introduced
  • moves to significant cash weighting in bearish environments
  • employs technical analysis and a proprietary quantitative model
  • focuses on absolute, rather than benchmark-relative return

Investment Process

The model doesn't make market calls, it makes sector calls. Signals are evaluated monthly and sector weights are reset when the ratio of risk to reward heightens. The process is rooted entirely in technical analysis.

Sector momentum varies across the market cycle. A strategy to trim susceptible, over heating sectors can help capture gains and minimize downside.


** For investment purposes, the Fund combines Telecommunication Services and Information Technology into one sector - referred to as 'Technology.' Sectors selected in Scenario 2 and 3 are for illustrative purposes only.
**Cash (in the form of cash equivalents or short-term instruments) is introduced when remaining sector choices are down to three.

The information contained in this fund profile is designed to provide you with general information related to investment alternatives and strategies and is not intended to be comprehensive investment advice applicable to the circumstances of the individual. We strongly recommend you to consult with a financial advisor prior to making any investment decisions. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in share and/or unit value and reinvestment of all dividends and/or distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. The payment of distributions should not be confused with a fund's performance, rate of return or yield. If distributions paid by the fund are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by a fund, and income and dividends earned by a fund, are taxable in your hands in the year they are paid. 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. The performance of a Fund may have been different had events such as mergers, portfolio manager changes and investment objective changes not taken place.

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