AGF Global Select Fund invests in the most innovative companies of any size, anywhere in the world. The end result is a ‘select’ portfolio of what Tony considers the best opportunities to capture superior growth.
Innovation is a necessity to survive and thrive in today’s new economy. Here are some of the current trends Tony is following to help identify tomorrow’s leaders
|Technology||Cloud, Mobility, Social Media, Big Data, Collaborative Consumption, 3D Printing|
|Health Care||Life Sciences/Genomics, Electronic Medical Records|
|Renaissance of U.S. Manufacturing||Transportation, Durables|
|Renewable Energy/Clean Technology||Solar, Wind, Energy Efficiency|
|U.S. Energy Self-Sufficiency||Chemical, Refiners|
AGF Global Select Fund’s top three overweights compared to its benchmark* are sectors known for innovation – Health Care, Information Technology and Consumer Discretionary.
To grow market share, companies in these sectors must engage in extensive R&D and have the fundamentals to keep rewarding shareholders. Tony’s active management and growth style continuously reassesses companies to keep portfolio selections at the forefront of evolving developments and opportunities.
|TOP 3 SECTORS HELD||FUND WEIGHT||COMPARABLE MSCI AC WORLD WEIGHT||ACTIVE SHARE DIFFERENCE|
*As of July 31, 2014
Active share is the proportion of a mutual fund’s holdings that differs from the benchmark. This difference could be the percentage weighting of individual securities, sector representation and, in the case of global funds, regional and country-specific weightings and/or exclusions. Active share can be a useful tool for identifying funds that are truly actively managed versus funds that mimic the benchmark. Different stages of a market cycle can favour active managers.
Global opportunities abound but identifying the strongest prospects for growth takes extensive research and expertise. Tony Genua, Senior Vice-President and Portfolio Manager of AGF Global Select Fund has more than 30 years of experience and his high conviction approach results in a portfolio that looks very different from the benchmark and other global funds.
As a bottom-up growth style manager, Tony uses quantitative screens to identify potential investment candidates and then overlays a qualitative analysis that includes in-depth fundamental research and meetings with management.
There needs to be a catalyst for a company to be added to the portfolio. Developments at the company level, within the industry and macro factors can all act as a catalyst.
Determining how much to hold of a particular company is influenced by macro factors as well as its growth potential. In constructing the portfolio, top-down country allocation is of least concern.
Tony’s approach of looking anew at each holding every day helps manage risk and keeps the portfolio responsive to evolving trends and developments.
This global equity fund provides investors with the potential for capital appreciation and global diversification by investing in shares of companies around the world with superior growth potential.
The portfolio manager uses a bottom-up earnings growth momentum investment style, looking at a company's revenue, earnings, profitability, earnings quality, growth potential, as well as industry and country strength.
|DATE||$ CLOSE||PREV. $ CLOSE||$ CHANGE||YTD % CHANGE|
|AS OF JAN 20, 2017||14.01||13.96||+0.05||+4.0|
|FUND||1 MO.||3 MO.||6 MO.||YTD||1 YR.||2 YR.||3 YR.||5 YR.||10 YR.||PSD^|
|Diamondback Energy Inc.||5.4%|
|T-Mobile US Inc.||5.2%|
|Raymond James Financial Inc.||5.1%|
|TD Ameritrade Holding Corp.||4.7%|
|Ted Baker PLC||4.2%|
|LG Display Co. Ltd.||4.1%|
|Cash & Cash Equivalents||2.9%|
|INVESTED FEBRUARY 29, 1996|
|Fund type:||Global equity|
|Fund start date:||February 15, 1996|
|Performance start date:||February 21, 1996|
|Total net assets:||$37.5 million|
Please refer to AGF.com for distribution information.
˜MER as of September 30, 2016. 1The 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.
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.
Tony typically spends 80% of his time on bottom-up stock selection and the remaining 20% on macro analysis and sector evaluation.
Tony uses a bottom-up stock selection process based on in-depth fundamental research. The process begins with a definition of an investment universe. The steps described below ultimately narrow this universe to a high-conviction portfolio.
The universe is narrowed through a variety of qualitative and quantitative screens that are used to identify growth companies.
The quantitative screens narrow the investable universe by analyzing fundamental factors including revenue growth, earnings growth and positive earnings revisions. Growth is viewed from a historical perspective in conjunction with an examination of its sustainability into the future.
To further narrow the investable universe and determine the optimal growth candidates, ongoing, targeted research identifies companies with leading product or service innovations, strong management and industry leadership in attractive markets.
In-depth analysis and due diligence is performed on each company. The rigorous bottom-up research ensures each candidate for portfolio inclusion exhibits strong fundamentals and confirms that these companies exhibit the potential for sustained growth as well as continued innovation in their products and services. Valuation is constantly monitored on an absolute basis, on a relative basis to industry peers and the market, relative to its long-term history.
The catalyst identification further reduces the universe, singling out potential purchase candidates. A number of factors are scrutinized at this stage including market share trends, research and development (R&D) and profitability are included in the list of considerations for evaluating a company's ability to grow at above-average rates. Innovation and the allocation of spending to R&D are closely monitored, as is the productivity of this spending. Valuations relative to peers, such as price to earnings and free-cash-flow generation, are key considerations.
The resulting portfolio consists of companies that exhibit strong growth characteristics. The typical range for position weights is 1-8%.