AGF Emerging Markets Equity Fund

Fundamental, bottom up approach.
All cap
MSCI Emerging Markets Index
Inception Date
January 3, 2020

Key Reasons to Invest


For investors seeking exposure to a broad universe of high quality companies in emerging market countries.


Emerging Market fundamentals are improving at both the company and country level.


The asset class currently has attractive valuations and a large discount to the developed markets.



The objective of the AGF Emerging Markets Equity Strategy is to outperform the MSCI Emerging Markets Index. The strategy is actively managed, all cap, style neutral, and utilizes bottom-up security selection combined with a disciplined Country Allocation Framework to select the stocks within the portfolio.


The AGF Emerging Markets Equity Strategy focuses on Economic Value Added (EVA). We believe this will drive long-term returns while controlling risk, and that companies generating returns in excess of their cost of capital create shareholder value. Our long-term investment horizon approach strives to take advantage of what we believe are short-sighted markets. We believe that markets are short-sighted and the differences between winners and losers become differentiated over time. We analyze existing holdings with a view towards the long term. The result of our investment process reveals emerging market stocks with strong profitability, resulting in sustainable earnings growth prospects not recognized by the market and selling at attractive valuations which drive our disciplined and diversified portfolio construction process


Our investment process is based on the concept of EVA, 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, with an awareness of the macroeconomic conditions through country analysis. Our emerging markets universe includes the MSCI Emerging Markets Index* and Hong Kong, for a total of 27 countries.

The country universe is scored and ranked for valuations, growth/sentiment, and risk. A minimum market cap of US$500 million is applied in the security screening process. The remaining universe is then ranked based on historical and prospective valuation, growth, and sentiment characteristics.

We apply an EVA screen to the resulting universe to uncover companies that have the ability to generate a return on investment that exceeds the company's cost of capital. From there, selected names are reviewed using in-depth fundamental analysis to uncover companies with strong businesses and management, unrecognized growth potential, and attractive valuations. The portfolio manager imposes disciplined controls at the country, sector, company, and portfolio level.

Investment Process

  • 27 countries, 2,000 companies
  • 1. Country Allocation Framework

    Screen: Liquidity; Political Risk
    Rank: Valuation, Growth/Sentiment, Risk

  • 2. Initial Analysis and Filter

    Screen: Liquidity (minimum market cap of US$500M)
    Rank: Attractive Valuation; Growth/Sentiment
    Universe: 900-1,000 companies

  • 3. EVA Analysis
    Ability to generate future economic profits driven by historical value and/or business transformation
    Universe: 200-250 companies
  • 4. Fundamental Research
    • Sound management and fair value
    • Distinct competitive advantage
    • Historical financial analysis
    • ESG analysis
    • Identifying company-specific catalysts
  • 5. Portfolio Construction

    Disciplined and DiversifiedCountry: Minimum level of exposure to key markets
    Sector: 8 of 11 GICS sectors

  • 50 - 80 names


Before investing you should carefully consider each Fund's investment objectives, risks, charges and expenses. This and other information is in the Fund's prospectus. Click here for prospectus or call 1-833-AGF-FUND (833-243-3863).

RISKS: Investing involves risk including loss of principal. Equity securities are volatile and can decline significantly in response to broad market and economic conditions. Investments in foreign securities involve risks that differ from investments in securities of U.S. issuers because of unique political, economic and market conditions. Foreign markets, especially those in less developed economies, are generally more illiquid than U.S. markets. Liquidity risk exists when investments are difficult to purchase or sell. This can reduce the Fund’s return because the Fund or an entity in which it invests may be unable to transact at advantageous times or prices. The less developed the market, the riskier the security. Such securities may be less liquid and more volatile. 
Additional risks of the Fund include but are not limited to: Portfolio Management Risk, Foreign Currency Risk, Frontier Market Risk, Equity-Linked Investment Risk, Depository Receipts Risk, Exchange-Traded Funds and Other Investment Companies Risk, Repurchase and Reverse Repurchase Agreements Risk, Credit Risk, U.S. Gov Securities Risk, Large Shareholder Risk, Limited Operating History Risk, Non-Diversification Risk.

The MSCI Emerging Markets Index captures large and mid cap representation across 24 Emerging Markets (EM) countries.

Distributor: Foreside Fund Services, LLC 

This website should not be considered a solicitation to buy or an offer to sell shares of any investment in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction. Nothing on this website is intended to be investment, tax, financial or legal advice.

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