AGF Global Select Equity ADR
Approach
Fundamental, bottom up.
Cap
All Cap
Benchmark
MSCI All Country World Index
Inception Date
August 2011
Key Reasons to Invest
1
The strategy offers concentrated exposure to global equities focusing on innovation to identify companies that exhibit product development and corporate leadership.
2
For investors looking to complement an existing global equity core portfolio and participate in the growth potential of global equities.
Overview
Strategy
A bottom-up growth investment style that looks for companies with above-average earnings and revenue growth relative to their historical earnings, the industry or overall market.
Philosophy
We believe that investing in the growth leaders of each market cycle offers investors the best opportunity to outperform over time. For this reason, we seek companies that reflect innovation and quality, while exhibiting a clearly defined strategy for achieving above average growth and the proven ability to implement and drive the strategy forward. Our approach leads to a concentrated, high conviction portfolio.
Investment Process
We employ a bottom-up stock selection process based on in-depth fundamental research. Our process begins with a global investment universe of over 5,000 securities
This universe is then narrowed to a list of 350+ companies through a variety of both qualitative and quantitative screens to identify companies in the universe that exhibit growth characteristics defined by our team. The quantitative screens narrow the investable universe by analyzing key factors such as revenue growth, earnings growth, positive earnings revisions and rising free cash flow. Growth measures are viewed from both an absolute and relative basis, as well as a historical perspective in conjunction with an examination of sustainability into the foreseeable future.
Proprietary research models and external databases are utilized to determine these characteristics for each company. The qualitative analysis continues to narrow the investable universe to 200+ companies through on-going, targeted research. This analysis identifies strong companies with leading product or service innovations, strong management and industry leaders in attractive markets. Company valuations are constantly monitored on both an absolute and relative basis compared to a peer group and the market, and valuation is also considered on a relative basis considering the long-term growth expectations. The rigorous bottom-up research process ensures each candidate for inclusion exhibits strong fundamentals.
The catalyst identification process further reduces the universe to 100+ companies, singling out potential purchase candidates. Factors scrutinized at this stage include market share trends, research and development (R&D), free cash flow generation and profitability. These factors are included in evaluating a company's ability to grow at above average rates. Innovation and the allocation of spending to R&D are closely monitored, as is the productivity of this spending.
Our resulting high-conviction portfolio consists of 25-40 companies that exhibit strong growth characteristics.
Investment Process
- 5,000 stocks
-
1. Quantitative Screens
- 350+ stocks
- Above average earnings and revenue growth
- Positive earnings revisions
- ROE
- Rising free cash flow
- Low debt/equity
-
2. Fundamental Analysis
- 200+ stocks
- Meeting management
- Identify secular trends
- New strategic initiatives
- New products or services
- Absolute and relative valuation metrics - P/E, P/S, P/B
-
3. Initial Candidates Result of Catalyst Identification
- 100+ stocks
- Research and development
- Potential market disruptors
- Culture
- Macro factors
- Partner developments
- 25 - 40 names
- High conviction
- Leaders
- Innovation
- Macroeconomic
- Thematic trends
Investment Team
Tony Genua has been Portfolio Manager of AGF's U.S. growth strategies since he joined the firm in 2005. Throughout his career in portfolio management, Tony has remained committed to his proven investment strategy that identifies leading growth companies in every cycle. Tony is also a member of the AGF Asset Allocation Committee (AAC), which is comprised 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.
Tony's portfolio management experience includes retail mutual fund investments, sub-advisory platforms and institutional portfolios. Tony's direct experience as a portfolio manager is complemented by the three years he spent as a market strategist on Wall Street.
Tony earned his BA in Economics from the University of Western Ontario.
Portfolio Manager under AGF Investments Inc. and AGF Investments America Inc.
Abhishek Ashok
M.A., MFE, CFA®
Richard Fisher
M.A. (Econ.)
Georgina Goldring
CFA®
Ling Han
M.Sc., MBA, CFA®
Grace Huang
MBA, CFA®
John Kratochwil
MBA, P.Eng.
Henry Kwok
MBA
Lazar Naiker
Pulkit Sabharwal
MBA
Wai Tong
MBA, P.Eng., CFA®
Wyeth Wright
CFA®
Sam Mitter
MBA
Auritro Kundu
MBA
Jonathan Lo
MBA
The AGF Equity Analyst Team consists of individuals from AGF Investments Inc. Personnel of AGF Investment Inc., an affiliated adviser located in Canada that is not registered with the SEC, provide research services to clients of AGF Investments America Inc through an Affiliate Resource Arrangements.
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.