Alternative Investing Strategies

In a recent study, advisors expect to allocate approximately 9% of their portfolios to alternative strategies.* Use this calculator to see how adding an alternative strategy to a typical balanced portfolio (60% equities, 40% fixed income and cash) has the potential to change the overall return profile and lower volatility.

 

      *Source: AIMA & Scotiabank - Handbook to Launching Alternative Mutual Funds in Canada, December 2018.


For illustrative purposes only; the hypothetical initial portfolio presented and hypothetical performance are not indicative of actual or future results. One cannot invest directly in an index.

Source: Morningstar Research Inc. Data used for the calculation of the hypothetical Initial Portfolio and Hedge Allocation shown above is updated on a quarterly basis and is based on the monthly historical index return data from February 1, 2002 to June 30, 2020 (the “Period”). ©2020 Morningstar. All Rights Reserved. The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar, (2) may include, or be derived from, account information provided by your financial advisor which cannot be verified by Morningstar, (3) may not be copied or redistributed, (4) do not constitute investment advice offered by Morningstar, (5) are provided solely for informational purposes and therefore are not an offer to buy or sell a security, and (6) are not warranted to be correct, complete or accurate. Except as otherwise required by law, Morningstar shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use. This report is supplemental sales literature. If applicable it must be preceded or accompanied by a prospectus, or equivalent, and disclosure statement.

The hypothetical initial portfolio is based on the following asset class allocations, each represented by historical index performance or yield for the Period: 0% Hedge Allocation, 5% cash (3-month Government of Canada Treasury Bill yield), 25% Canadian bonds (Bloomberg Barclays Aggregate Canada Bond Index), 10% Global Bonds (Bloomberg Barclays Aggregate Global Bond Index), 30% Canadian equities (S&P/TSX Composite Index TR (CAD)). 20% US Equities (S&P 500 Index) and 10% global equities (MSCI World ex-Canada Index (Gross Total Return Index (CAD)).

The Alternative Allocation adds an allocation to equity hedge funds to the Initial Portfolio. The equity hedge fund allocation is based Dow Jones U.S. Thematic Market Neutral Anti-Beta (CAD-Hedged) Index (CAD). The allocations to cash, bonds, Canadian equities, and global equities in the Hedge Allocation are adjusted on a proportional basis relative to increases and decreases to the hedge fund allocation. All hypothetical returns are annualized since inception.

Hypothetical Performance:

The information presented from the Portfolio Allocation Tool are hypothetical in nature and presented for information purposes only.  The tool demonstrates hypothetical performance results from increasing the weight of a hedge allocation relative to proportions of fixed income (Canadian bond, global bond), equity (Canadian equity, US equity, global equity), and cash.  AGF Investments Inc. (“AGF”) does not guarantee the tool to be correct, complete or accurate.  Actual performance results may vary significantly and the information presented should not be considered as investment advice nor as an offer to engage in any security transactions.  We strongly recommend consulting with a professional advisor prior to making investment decisions.

Hypothetical performance information carries inherit risks and limitations and should not be considered as an indication or guarantee of future performance.  Hypothetical performance does not consider the impact of financial and event risks and which cannot be captured in a simulated portfolio allocation.  As there are no transactions involved in the portfolio allocation tool, certain risks related to the market and the liquidity of securities cannot be captured that will impact actual performance.  There may be other risks involved that are not mentioned here which could cause the hypothetical performance to be overstated.  Commissions, trailing commissions, management fees and expenses all may be associated with investing in an actual investment portfolio and has not been reflected in the portfolio allocation tool.  Actual performance results may differ significantly from the results demonstrated in the portfolio allocation tool.

The Dow Jones U.S. Thematic Market Neutral Anti-Beta Index (CAD-Hedged) is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI"), and has been licensed for use. Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"). The Dow Jones U.S. Thematic Market Neutral Anti-Beta Index (CAD-Hedged) is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P and their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the Dow Jones U.S. Thematic Market Neutral Anti-Beta Index (CAD-Hedged).

Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, “Barclays”), used under license. Bloomberg or Bloomberg’s licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays approves or endorses this material, or guarantees the accuracy or completeness of any information herein, or makes any warranty, express or implied, as to the results to be obtained therefrom and, to the maximum extent allowed by law, neither shall have any liability or responsibility for injury or damages arising in connection therewith.

The INDXX Hedged Dividend Income Currency-Hedged CAD Index is a product of Indxx, LLC and has been licensed for use. The ETF and its units are not sponsored, endorsed, sold or promoted by Indxx, LLC. Indxx, LLC makes no representation or warranty, express or implied, to the unitholders of the ETF or any member of the public regarding the advisability of investing in securities generally or in the ETF particularly, or the ability of any data supplied by Indxx, LLC to track general stock market performance. Indxx, LLC's only relationship to the ETF is the licensing of certain trademarks and trade names of Indxx, LLC and of the data supplied by Indxx, LLC which is determined, composed and calculated by Indxx, LLC without regard to the ETF or its units. Indxx, LLC has no obligation to take the needs of the manager, portfolio manager, sub-advisor or the unitholders of the ETF into consideration in determining, composing or calculating the data supplied by Indxx, LLC. Indxx, LLC is not responsible for and has not participated in the determination of the prices of the units of the ETF or the timing of the issuance or sale of such units. Indxx, LLC has no obligation or liability in connection with the administration, marketing or trading of the ETF or its units.

The MSCI information referenced may only be used for your internal use, may not be reproduced or disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information.  Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. (www.msci.com).

The information contained in this report has been obtained from sources believed reliable, however the accuracy and/or completeness of the information provided herein is not guaranteed by AGF, nor does AGF assume any responsibility or liability whatsoever. 

Continuing Education

An Introduction to Liquid Alternatives

(For advisors only)

AGF Alternatives

Our expertise and partnerships across the spectrum of alternative strategies allows investors access to and benefit from allocations to alternatives investments as part of a disciplined investment approach.

Learn more
Our website uses cookies to help you get the best experience. Please Accept or click Edit to control your settings.