AGFiQ Canadian Equity Strategy

Approach
Quantitative, Fundamental Approach
Cap
Multi-Factor, All Cap
Benchmark
S&P/TSX Composite Total Return
Inception Date
October 1998
Documents

Key Reasons to Invest

    • Seeks to provide investors with long-term outperformance of the S&P/TSX Composite Benchmark
    • Achieves its investment objective through a disciplined, transparent repeatable investment process
    • Investment process identifies opportunities at both the sector and stock level

Strategy

The Strategy incorporates quantitative research and fundamental analysis in a systematic investment process that has three components: (1) Sector Allocation, (2) Stock Selection and (3) Portfolio Implementation. The investment team’s proprietary bottom-up sector allocation and stock selection models identify the most attractive investment opportunities and through the portfolio construction process, alpha is captured while the risk is managed.

Philosophy

At the Strategy’s foundation lies empirically based research and the combination of quantitative and fundamental investing.  We believe that investment success can be achieved through blending quantitative and fundamental analysis to capture alpha drivers at the sector level– Growth, Value, Quality and Risk (GVQ+RTM). We believe these fundamental alpha drivers differ between sectors.  We believe there is a strong opportunity in Canada for added value through sector diversification and allocation.

Process

The investment process is driven by bottom-up stock and sector models. The sector allocation model highlights the relative attractiveness of AGFiQ’s unique sectors, while the stock selection models identify the most attractive stocks for investment consideration. In both stock selection and sector allocation, a fundamental review is completed to verify the quantitative model and to identify any risks not captured by the AGFiQ team’s models.