AGF Global Dividend Equity Strategy

Approach
A fundamental, combined investment approach.
Cap
Large cap
Benchmark
MSCI All Country World Index
Inception Date
August 2007
Documents

Key Reasons to Invest

    • The Strategy invests in high-quality, dividend-paying companies and maintains strong risk controls at the country, sector and company level which has contributed to lower volatility and better downside protection relative to the peer universe.
    • For investors seeking the benefits of global market diversification and capital appreciation
    • The strategy focuses on risk-adjusted returns and downside protection

Strategy

The AGF Global Dividend Strategy seeks to capture returns from asset pricing inefficiencies at the company and at the country level. The Strategy focuses on Economic Value Added (EVA) with a fundamental, combined fundamental and quantitative core investment approach to drive long-term returns while controlling risk.

Philosophy

We believe a combined focus on corporate economic profit (EVA) growth and country allocation drives long-term returns while controlling risk. We further believe that a focus on dividend yield and dividend growth can add incremental performance. We seek companies that can generate returns in excess of their cost of capital, thereby creating shareholder value. We emphasize countries with attractive value, growth/sentiment and risk profiles.

Process

Our process is based on the concept of EVA (economic value added), which focuses on finding companies that over time, will exhibit characteristics such as strong/growing cash flow generation, sales, margins and/or asset utilization.

Our process is underpinned by fundamental stock selection and aided by our disciplined country allocation framework. The global universe contains 47 countries. Political and liquidity screens eliminate a number of countries. The resulting country universe, representing approximately 90% of MSCI All Country World Index by market capitalization, is then scored and ranked for valuations, growth/sentiment, risk and dividend yield. A minimum market cap screen of US$1.5 billion is applied in the security screening process. The remaining universe is then ranked based on historical and prospective valuation, growth and sentiment characteristics. Companies in the top six deciles in this analysis are included in the next screening.

Subsequent EVA analysis reduces the universe to the ‘watchlist’. Selected names are reviewed using in- depth fundamental analysis to uncover companies with strong businesses and management, unrecognized growth potential, attractive valuations, dividend yield and/or dividend growth prospects.

The portfolio manager imposes disciplined controls at the country, sector, company and portfolio level. The Portfolio typically maintains a dividend yield in excess of the MSCI All Country World Index.

Global Dividend Process

Fund Managers

Stephen Way, CFA

Senior Vice-President and Portfolio Manager
AGF Investments Inc.

Title and Position

Stephen Way leads AGF’s global equity team in Toronto, while maintaining portfolio management responsibilities for their global equity and emerging markets mandates. As the architect of the EVA-based (Economic Value Added) investment process used for these industry-leading mandates, he is supported by a team that uses their collective industry experience and globally diversified cultural backgrounds to locate opportunities unrecognized by the market. Stephen is also a member of the AGF Asset Allocation Committee (AAC), which consists of senior portfolio managers who are responsible for various regions and asset classes. The AAC meets regularly to discuss, analyze and assess the macro-economic environment and capital markets in order to determine optimal asset allocation recommendations.

Stephen holds a B.A. in Administrative and Commercial Studies from the University of Western Ontario. He is a CFA® charterholder and a member of the Toronto CFA Society.

Approach or Quote

Stephen’s industry experience began when he joined AGF in 1987. In 1991, he established AGF’s wholly owned subsidiary AGF International Advisors Company Limited in Dublin, Ireland and ran the operations as Managing Director until 1994.

Registered as a Portfolio Manager under AGF Investments Inc. and AGF Investment America Inc. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

Years with AGF

30

Years in the industry

30

TEAM EXPERIENCE MATTERS

200+

Years of experience

10

Different home countries

13

Languages spoken

20+

Years - Stephen Way, the longest-tenured global equity manager in Canada

Analyst Name

MBA, JD, CHA
Portfolio Management