AGF pulls back curtain on new liquid-alt funds

AGF pulls back curtain on new liquid-alt funds

AGF pulls back curtain on new liquid-alt funds

AGF has expanded its alternative investment lineup with the launch of three new liquid-alt products for investors in Canada.

“We believe alternative investments are fundamental building blocks for well-constructed portfolios, helping investors diversify their sources of risk and returns, contributing to lower volatility and opportunities for better long-term risk-adjusted returns,” said Florence Narine, senior vice-president and head of Product, AGF Investments.

“Leveraging the unique strengths of AGFiQ, AGF’s quantitative investment team, these offerings build on AGF’s long history of managing long/short, market-neutral and derivative-based strategies in liquid investment vehicles in the U.S.,” she said.

The new funds will be advised by Mark Stacey, senior vice-president, co-chief investment officer, and head of AGFiQ Portfolio Management; Bill DeRoche, chief investment officer, AGF US, and head of AGFiQ Alternative Strategies; and Jeff Kay, vice-president and portfolio manager, AGFiQ Quantitative Investing.

The first new offering, AGFiQ US Market Neutral Anti-Beta CAD-Hedged ETF, trades on the TSX with the ticker symbol QBTL. With a unique long/short structure, it offers an effective hedge against U.S. equity-market volatility.

QBTL seeks performance results that correspond to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Thematic Market Neutral Anti-Beta Index (CAD-Hedged).

Meanwhile, the AGFiQ US Long/Short Dividend Income CAD-Hedged ETF, which trades on the TSX with the ticker symbol QUDV, offers income and growth potential with lower interest-rate and credit risk levels than a corporate bond fund. A strategy that’s focused on high dividend income with a secondary goal of capital appreciation, the strategy is designed to limit drawdowns when equity markets fall and give up some potential gains from rising markets.

QUDV seeks performance results that reflect the price and yield performance, before fees and expenses, of the Indxx Hedged Dividend Income Currency-Hedged CAD Index. Canadian investors may also choose to avail of AGFiQ US Long/Short Dividend Income CAD-Hedged Fund, a mutual-fund version of QUDV.

QBTL and QUDV come with the same management fee of 0.55%. The AGFiQ US Long/Short Dividend Income CAD-Hedged Fund, meanwhile, has a fee of 0.55% for Series F and Series FV units, and 1.55% for MF Series, Series T, and Series V units.

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