Allocation strategy offers risk controls for down markets, participation in up markets
TORONTO, Aug. 19, 2013 /CNW/ - AGF Investments Inc. today introduced AGF U.S. AlphaSector Class, an innovative solution for Canadian advisors seeking to manage their clients' portfolio risk in volatile markets. The fund offers a different approach to risk by managing the impact of down markets.
"Canadian investors are conservative by nature and market volatility often leaves them on the sidelines," said Gordon Forrester, Executive Vice-President, Product and Marketing and Head of Retail, AGF Investments Inc. "This fund addresses a Canadian market need with a unique solution that considers risk from a client's perspective. We are pleased to introduce this innovative investment strategy to Canada."
Advised by Boston-based F-Squared Investments, AGF's U.S. AlphaSector Class is constructed exclusively from nine exchange traded funds (ETFs) reflecting the 10 sectors of the S&P 500 in addition to one short-term treasury ETF. "Our AlphaSector strategy is 'client centric' not 'benchmark centric," said Howard Present, President and Chief Executive Officer, F-Squared Investments. "This partnership with AGF provides Canadian investors with a defensive complement to more volatile equity investments."
The fund offers a way for investors to participate in rising markets and preserve capital while minimizing drawdown risk through an innovative allocation strategy that identifies volatility at a sector level. Indicated sectors are then omitted from the portfolio and the assets are allocated equally to the remaining sectors. When three or fewer sectors are represented, the portfolio will begin building a position in cash equivalents. "Our strategy allows us to focus on healthy sectors and eliminate our exposure to declining sectors. Our ability to go to 100% cash if our indicators dictate allows us to be truly defensive during downward trending markets," added Present.
"Innovation has always been a driving force at AGF. With the launch of AGF U.S. AlphaSector Class we further our mission of helping investors succeed by providing a unique way to build wealth while still shielding against severe and extended market declines." said Blake C. Goldring, Chairman and Chief Executive Officer, AGF Management Limited.
For more information about AGF U.S. AlphaSector Class please visit www.agf.com/alphasector.
ABOUT AGF MANAGEMENT LIMITED
AGF Management Limited is one of Canada's premier independent investment management firms with offices across Canada and subsidiaries around the world. AGF's products include a diversified family of award-winning mutual funds, mutual fund wrap programs and pooled funds. AGF also manages assets on behalf of institutional investors including pension plans, foundations and endowments as well as for private clients. With approximately $37 billion in total assets under management, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
ABOUT F-SQUARED INVESTMENTS
F-Squared is a quantitatively based boutique investment firm based in Newton Newton/Wellesley Massachusetts. F-Squared Investments was founded in 2006 by investment industry veterans whose goal was not merely to succeed against conventional industry standards, but to deliver ground-breaking solutions that meet the real needs of investors. The firm's innovative business model delivers scalable, transparent investment strategies and customizable capabilities. As of June 30, 2013 assets under management and those under model manager agreements exceed $14 billion.
SOURCE: AGF
Media contact:
Liana Krmpotic
Corporate Communications
416-865-4154
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