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AGF Fixed Income Plus Fund

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Using more tools in the fixed-income toolkit

Not all fixed-income investments are created equally when it comes managing through different interest-rate scenarios. For those seeking income who are also concerned about the impact of rising rates on total return, there is AGF Fixed Income Plus Fund – an actively managed solution with a full toolkit of diversified investments whose portfolio can be adjusted for opportunities and challenges at hand. 

1. Why AGF Fixed Income Plus Fund

  • Flexibility – Due to its scope, the Fund can be highly responsive to interest-rate and market changes
  • Scope – Option to invest in high-yield bonds, convertible debentures and emerging-market debt offers investors increased yield and total return potential in the current low-yield environment
  • Complementary – Tends to be less interest-rate sensitive relative to its peers due to the inclusion of alternative fixed-income instruments

2. Using more from the fixed-income toolkit

The Fund’s key differential is to hold investment-grade bonds for yield and capital preservation, while supplementing with alternative fixed-income categories for higher-income streams, less interest-rate sensitivity and diversification.

Many fixed-income managers look to diversify through the traditional tools of duration, term structure, credit quality and category allocation. Longer-term bonds can offer higher yields, their prices are more susceptible to interest-rate changes.

Other fixed-income categories such as high-yield bonds and convertible debentures can help manoeuvre portfolios through different market scenarios.

AGF FIXED INCOME PLUS FUND DIVERSIFICATION OPPORTUNITIES

Investment-Grade Bonds
(70 - 100%)

  • Issuer can vary but typically corporate issues offer higher yields than most government bonds

High-Yield Bonds (0 - 25%)

  • Relatively higher yields than investment-grade bonds
  • Performance driven more by credit and less by interest rates
  • Generally, low correlation with DEX Universe Bond Index

Convertible Debentures
(0 - 25%)

  • Strong downside protection vs. stocks
  • Good upside potential vs. bonds
  • Price can participate in equity market advancement

Emerging Market Bonds, Municipal Bonds and Income Trusts (0 - 10% each)

  • Higher yields
  • Diversification benefits
  • Low correlation dampens volatility

Cash & Cash Equivalents
(0 - 20%)

  • Gives Fund the flexibility to respond and invest in diverse opportunities
  • Provides defence in an adverse interest rate or credit environment


Featured Materials

David’s rigorous and disciplined investment process is a combination of a top-down fundamental approach to duration and fixed-income category allocation (where underweight and overweight allocations are decided) and a bottom-up process to assess credit selection.
To successfully manage a fixed-income portfolio through various interest-rate cycles and macro environments requires a toolkit beyond traditional fixed-income options.
In today’s low-rate environment, many income-oriented investors are looking for higher income – but many of those same investors also rank preservation of capital as an important consideration. AGF Fixed Income Plus Fund is designed for these investors. Its core investment-grade holdings are complemented by additional fixed-income investments that can help increase yield and capital appreciation potential without assuming an equal increase in risk.
Fixed-income investors have enjoyed an unprecedented bull market in bonds over the last 30 years, with falling interest rates adding significant price appreciation on top of bonds’ coupon income. However, times are changing and interest rates won’t be low forever. Now is the time to retool your portfolio for the eventuality of rising rates.

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.

AGF Inflation Plus Bond Fund and AGF Canadian Bond Fund merged into AGF Fixed Income Plus Fund on May 20, 2016.

REASONS TO INVEST IN THIS FUND

The Fund seeks steady income by investing primarily in high-quality Canadian Government and corporate fixed-income securities. This Fund may also invest in high-yield bonds, convertible debentures and emerging market debt.

INVESTMENT PROCESS

The Fund's fixed-income strategy emphasizes quality while focusing on managing term and duration relative to the benchmark. Its core fixed-income style involves a managed duration approach supplemented by high-quality investment-grade credits with attractive yield spreads.

Portfolio Managers / Advisors
Vice-President and Portfolio Manager
AGF Investments Inc.
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Date as of 08-31-2016

Performance

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Portfolio Details

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Fund Overview

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Risk Management

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Related & Regulatory Documents

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¿Effective April 1, 2016, AGF reduced the MF Series management fee from 2.00% to 1.50%.

Please refer to AGF.com for distribution information.

˜MER as of March 31, 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. *TTM = Trailing 12-month.

AGF Inflation Plus Bond Fund and AGF Canadian Bond Fund merged into AGF Fixed Income Plus Fund on May 20, 2016.

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

The Fund’s fixed-income strategy emphasizes quality while focusing on managing term and duration.

David’s rigorous and disciplined investment process is a combination of a top-down fundamental approach to duration and fixed-income category allocation (where underweight and overweight allocations are decided) and a bottom-up process to assess credit selection.

Hands-on management and continuous monitoring enables him to take advantage of unfolding opportunities and reduce risks

The AGF Fixed Income Plus Fund Difference

  • Its core bond portfolio is designed to be conservative.
  • In addition to the core holdings, the manager can add high-yield bonds, Emerging Market bonds, municipal bonds and convertible debentures:
    • Higher yield-bearing investments can add between 0.5 - 1% further upside potential, assuming a 10 - 15% allocation to alternative asset classes.
    • Use of convertible debentures differentiates the Fund from most other fixed-income funds and provides additional capital appreciation potential
  • Research expertise in identifying corporate debt and idea generation is supplemented by the AGF North American Research team.

fund907

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.

AGF Inflation Plus Bond Fund and AGF Canadian Bond Fund merged into AGF Fixed Income Plus Fund on May 20, 2016.

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