AGF Global Sustainable Equity Fund
Approach
Fundamental, bottom up approach.
Cap
Mid-Large Cap
Benchmark
MSCI World Net Index
Inception Date
November 3, 2017
Key Reasons to Invest
1
Exposure to thematic opportunities that are arising from the ongoing transition to a sustainable economy.
2
Focused on companies that meet the sustainability issues facing the world using a disciplined thematic investment framework.
3
For investors interested in responsible investing and global diversification.
Overview
Strategy
A disciplined, fundamental bottom-up approach to responsible and sustainable investing from an experienced sustainable investment team. The Fund is focused on companies categorized within four major themes: energy transition, circular economy & pollution abatement, water services & climate adaption and food & health.
Philosophy
We believe that a transition to a more sustainable economy is underway and is gaining velocity. Drivers include policy and regulation, changing corporate objectives, societal pressure, and technological advances. Our view is that investing in the thematic opportunities related to this transition forms a compelling and enduring strategy to deliver both positive impact and the opportunity for superior returns.
Process
Our investment process is based on the concept of Economic Value Added (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
Four macro themes:
- Energy & Power Technologies
- Waste Management & Pollution Control
- Water & Waste Water Solutions
- Health & Well-Being
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1. Screening
- Growth characteristics and balance sheet fundamentals
- Theme assessment to indicate relative attractiveness
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2. Fundamental Analysis
- Stage Appropriate Company Analysis
- Value Chain Assessment
- ESG Criteria Assessment
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3. Portfolio Construction
- Exposure and conitnual monitoring
- Stock weights scaled to conviction levels and company stage
Investment Team
Resources
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 global equities may be significantly affected by political or economic conditions and regulatory requirements in a particular country. International markets can involve risks of currency fluctuation, political and economic instability, different accounting standards and foreign taxation. Emerging or frontier markets involve exposure to economic structures that are generally less diverse and mature. The less developed the market, the riskier the security. Such securities may be less liquid and more volatile. Sustainable Investing Risk, there are significant differences in interpretations of what it means for a company to have positive exposure to sustainable investment themes. The Fund may forgo opportunities to gain exposure to certain attractive companies in certain industries and sectors, such as fossil fuel producers, and may have a reduced weighting in other sectors, due to their lack of positive exposure to sustainable investment themes. Because of these themes, the Fund may underperform the market as a whole if such investments underperform the market. In addition, sustainable investing considerations may be linked to long-term rather than short-term returns.
Additional risks of the Fund include but are not limited to: Portfolio Management Risk, Foreign Currency Risk, Equity-Linked Investment Risk, Depository Receipts Risk, Exchange-Traded Funds and Other Investment Companies Risk, Hedging Risk, Liquidity Risk, Repurchase and Reverse Repurchase Agreements Risk, Credit Risk, U.S. Gov Securities Risk, Large Shareholder Risk, Limited Operating History Risk.
*The MSCI Emerging Markets Index captures large and mid cap representation across 24 Emerging Markets (EM) countries
Distributor: Foreside Fund Services, LLC
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