Private Credit in a Portfolio
Use this calculator to see how adding an allocation to private credit in a typical balanced portfolio (60% equities, 40% fixed income and cash) can change the overall return profile and potentially result in improved risk-adjusted returns.
Purchase Exemptions and Minimum Investment Requirements
The AGF SAF Private Credit Trust (the “Trust”) is generally available to Canadian residents who can meet certain eligibility requirements under one of the following exemptions from the prospectus requirements in order to invest.
- Accredited Investor Exemption: This exemption is available only to “accredited investors” as defined in National Instrument 45-106 – Prospectus Exemption. The minimum initial purchase amount is $10,000.00 (as established by the Manager) under this exemption.
- Minimum Amount Exemption: This exemption is available to investors who are not individuals and who are not residents of Alberta, and the minimum initial purchase amount is $150,000.00.
Eligible investors may invest using the Offering Memorandum exemption (where available) but must do so using the services of a registered dealer or investment advisor. Access to the information in this website must be obtained through the dealer or advisor. Investors should contact their investment dealer or financial advisor for more information regarding these exemptions and their requirements.
If you are an accredited investor and/or can comfortably invest the minimum dollar amount specified, you must confirm that you meet one or more the below criteria to access this site and learn more about the Trust. Registered dealers and investment advisors may also accept and access this site.
Accredited Investors who may access this site are defined in NI 45-106 – s. 2.3 and include:
- a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer
- an individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets, having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000
- an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5,000,000
- an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year
- an individual who, either alone or with a spouse, has net assets of at least $5,000,000
- a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements
- a person acting on behalf of a fully managed account managed by that person, if that person is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction
- a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility advisor, or an advisor registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded
- a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors
- a trust established by an accredited investor for the benefit of the accredited investor’s family members of which a majority of the trustees are accredited investors and all of the beneficiaries are the accredited investor’s spouse, a former spouse of the accredited investor or a parent, grandparent, brother, sister, child or grandchild of that accredited investor, of that accredited investor’s spouse or of that accredited investor’s former spouse.
For Accredited Investors and Investment Advisors Only. This calculator is hypothetical and for illustrative purposes only. Actual portfolio results may differ and are subject to inherent limitations and risks. The hypothetical initial portfolio presented and hypothetical performance are not indicative of actual or future results. One cannot invest directly in an index.
This portfolio allocation tool is provided to you by AGF Investments Inc. (“AGFI”) for informational purposes only on the understanding that, as an accredited investor or investment professional, you will understand and accept its inherent limitations, you will not rely on it in making or recommending any investment decision with respect to any securities that may be issued and does not constitute an offer to sell, or a solicitation of an offer to buy, securities in any fund.
While AGFI makes effort to ensure that the contents herein have been obtained or derived from sources believed by AGFI to be reliable, it cannot guarantee the accuracy of any such information and does not represent that such information is accurate or complete. The information presented herein is current only as of the particular dates specified for such information and is subject to change without notice.
Source: Morningstar Research Inc. and Prequin. Data used for the calculation of the hypothetical Initial Portfolio and Private Equity Allocation shown above is updated on a quarterly basis and is based on the monthly historical index return data from January 1, 2010 to June 30, 2023 (the “Period”). ©2023 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.
The hypothetical initial portfolio is based on the following asset class allocations, each represented by historical index performance for the period: 0% private credit allocation, 20% high yield bonds (Bloomberg Global High Yield Total Return Index USD), 20% investment grade bonds (Bloomberg Global Aggregate Total Return Index USD), 60% global equities (MSCI All Country World Gross Return Index USD).
The private credit allocation added to the initial portfolio is based on the PVT Debt Prequin Index. The allocations to bonds and equities are adjusted on a proportional basis relative to increases and decreases to the private equity 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 private credit allocation relative to proportions of fixed income and equities. 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.
Bloomberg Index Services Limited. BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”). Bloomberg or Bloomberg’s licensors own all proprietary rights in the Bloomberg Indices. Bloomberg does not approve or endorses this material, or guarantee the accuracy or completeness of any information herein, or make 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 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).
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