How do you determine the right mix of funds for your portfolio?

Portfolio construction and asset allocation decisions are often overlooked components of investment management that, when optimized, can aid in delivering more efficient portfolio returns and volatility profiles; ultimately working to better meet the intended objectives. Investment selection is an important first step, however, understanding how certain investments interact with one another and the added benefit of each at the portfolio level are crucial considerations. Diversification remains key.

Active management requires:

• A disciplined approach to determine optimal asset allocations
• Sound portfolio construction and risk management
• A process that delivers repeatable results
• Active monitoring of the portfolio
• Rebalancing when required to maintain optimal positioning


AGF Asset Allocation Committee

At AGF, our Asset Allocation Committee consists of senior investment professionals who provide insight and perspective on global fixed income and equity markets including currency management to determine the asset allocation decisions for AGF’s fundamental multi-asset strategies.

Each member provides their outlook for their respective asset class, including both return drivers and risks to their forecasts. These outlooks are combined to arrive at a final asset allocation view, which are then distilled into managed portfolios through an asset allocation framework with the objective of providing diversification and capturing opportunities from around the world.

Three Layers of Active Management = Better Risk-Adjusted Returns

3 Step Process

1. Forecast

  • Full Committee formally meets quarterly
  • Detailed review of capital markets and economic environment
  • Incorporate qualitative views from AGF managers and analysts
  • Forecasts established

2. Construct

  • Forecasts incorporated into a reverse-optimization process
  • Target asset mix determined
  • Asset mix reflected in fund selection
  • Adherence to investment policy statement

3. Monitor

  • Ongoing monitoring of capital markets and portfolio
  • Analysis of underlying funds
  • Monitor asset class signals
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