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AGF launches ETF-based US AlphaSector Class


AGF Investments has launched AGF US AlphaSector Class, an innovative exchange traded fund-based 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," says 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 US 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," says 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 minimising 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," says Present.

"Innovation has always been a driving force at AGF. With the launch of AGF US 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,” says Blake C Goldring, Chairman and Chief Executive Officer, AGF Management Limited.

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