Overcoming Uncertainty

Protecting future income and growth with a global perspective

What is income? It can mean a form of tax liability, a security asset class, a part of an investment return profile or simply cash flow from a variety of sources. Ultimately, income is what individuals need to afford the lifestyle they desire. To achieve this outcome, there are many investment factors that need to be considered. Probably the most critical factor to consider is yield. Yield can help improve an investment’s total return profile, cushion an investment portfolio in times of volatility or directly fund a retirement income plan. Finding yield, however, has been a challenge.

Countries and regions that have been economic partners for decades are no longer moving their rates in lock-step, or at the same pace, creating various rate dislocations in the market. Is this a concern or an opportunity? Active management of an investment portfolio’s yield sleeve has never been more important.

Source: Bloomberg as of November 30, 2018.

Finding and maintaining yield as part of an investment plan may not always be an easy thing to do, especially given the current market conditions we’re facing. Consider these three opportunities:

Bonds

In the face of constrained yields the need for strong core fixed income plus yield diversifiers are becoming increasingly important.

Equities

Increasing exposure to quality dividend paying equity solutions can help mitigate the risk of rising rates while providing greater sources of yield.

Alternative Sources

Alternative sources of income can come from a specialized sector, a different approach to dividend growth or broader exposure to global debt securities.

Why AGF?

AGF has always understood the importance and impact of the global markets to investors. In fact, it’s the reason the company was founded 60 years ago – to democratize access to foreign markets for Canadians.

Our team is on the ground in 9 countries, seeking out the global companies capable not just of surviving a market disruption, but capitalizing on it. We speak the languages of the nations we invest in, allowing us to decipher cultural nuances and identify new growth opportunities that could otherwise slip under a Canadian investor's radar.

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Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated.

The commentaries contained herein are provided as a general source of information based on information available as of November 30, 2018. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF Investments accepts no responsibility for investment decisions arising from the use or reliance on the information contained herein.

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