AGF Launches Two New U.S.-Listed AGFiQ ETFs to Expand Presence in U.S. Marketplace
BOSTON, May 23, 2019 (GLOBE NEWSWIRE) -- AGF Management Limited (AGF) announced today, through AGF Investments LLC (formerly FFCM LLC) the launch of AGFiQ Global Infrastructure ETF (GLIF) and AGFiQ Dynamic Hedged U.S. Equity ETF (USHG), which begin trading on the NYSE Arca, Inc. effective May 23, 2019.
These two new U.S.-listed ETFs provide AGF with the opportunity to leverage their capabilities and bring to the U.S. marketplace additional innovative strategies through their quantitative and factor-based investment platform – AGFiQ.
“The launch of these new products reinforces AGF’s commitment to bringing new alternative solutions to investors in the U.S.,” said Bill Carey, Chief Executive Officer, AGF Investments LLC. “At the same time, it supports the further growth of AGF’s footprint in the U.S., leveraging the organizational strength, research acumen, investment capabilities and marketing and product development.”
The new ETFs were developed to bring opportunities for diversification through alternative asset classes and also risk-managed solutions through the use of alternative investment strategies.
The AGFiQ Global Infrastructure ETF uses a multi-factor investment process to seek long-term capital appreciation by investing primarily in global equity securities in the infrastructure industry.
“As an active, multifactor ETF, AGFiQ Global Infrastructure or GLIF provides potential diversification and risk reduction benefits for investors, said Florence Narine, Senior Vice-President, Head of Product, AGF Investments Inc. “Listed infrastructure securities typically offer higher dividend yields than equities or bonds and can be used as a hedge against inflation or to mitigate rising rates.”
Accessing U.S. Equities
The AGFiQ Dynamic Hedged U.S. Equity ETF provides exposure to a diversified portfolio of U.S. equities, while seeking to provide long-term capital appreciation with lower volatility using embedded downside risk management which seeks to protect capital.
“As a risk-managed holding, AGFiQ Dynamic Hedged U.S. Equity ETF or USHG offers exposure to the long-term growth potential of U.S. equities using a multi-factor approach designed in an effort to have lower volatility and better risk-adjusted returns relative to the market through its use of a dynamic hedging model,” added Narine.
Name and Ticker Investment Objective Management Fee Net Expenses -------------------------------------- ------------------------------------------- -------------- ------------ AGFiQ Global Infrastructure ETF (GLIF) The Fund seeks to provide long-term capital 0.45% 0.45% appreciation. -------------------------------------- ------------------------------------------- -------------- ------------ AGFiQ Dynamic Hedged U.S. Equity ETF The Fund seeks to provide long-term capital (USHG) appreciation and maintain lower than market 0.45% 0.55% volatility. -------------------------------------- ------------------------------------------- -------------- ------------
Introducing AGF Investments LLC
AGF also announced that effective May 6, FFCM LLC’s name officially changed to AGF Investments LLC.
Last May, AGF successfully completed its acquisition of 100% of FFCM to further strengthen its quantitative and factor-based investment platform, AGFiQ and growing presence in the U.S. marketplace.
This new name brings consistency and clarity to AGF’s roster of individual and regional subsidiaries.
AGFiQ is the quantitative investment platform for AGF powered by an intellectually diverse, multi-disciplined team that combines the complementary strengths of investment professionals across AGF and its affiliates.
ABOUT AGF MANAGEMENT LIMITED
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations. AGF has investment operations and client servicing teams on the ground in North America, Europe and Asia. With nearly C$40.0 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.
Media ContactAmanda Marchment Director, Corporate Communications 416-865-4160 firstname.lastname@example.org
Before investing you should carefully consider the Fund’s investment objective, risks, charges, and expenses. This and other information is in the prospectus which can be obtained by visiting www.AGF.com. Please read the prospectuses carefully before you invest.
A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. Exposure to an asset class represented by an index is available through investable instruments based on that index. We make no assurance that investment products based on an index will accurately track index performance or provide positive investment returns.
Risks: There is no guarantee that the Fund will achieve its objective. Investing involves risk, including possible loss of principal. For further risk information, please read the prospectus.
USHG Risks: The Fund’s hedging strategies against declines in security prices, financial markets, exchange rates and interest rates may not be successful, and even if they are successful, the Fund’s exposure to a certain risk may not be fully hedged at all times and the Fund may still lose money on a hedged position. The risks of investing in securities of ETFs typically reflect the risks of the types of instruments in which the underlying ETF invests. To the extent the Fund invests significantly in the AGFiQ U.S. Market Neutral Anti-Beta Fund, which is also managed by the Adviser (the “Market Neutral ETF”), it will be subject to the following risks applicable to investing in the Market Neutral ETF: There is a risk that during a “bull” market, when most equity securities and long only ETFs are increasing in value, the Market Neutral ETF’s short positions will likely cause the Market Neutral ETF to underperform the overall U.S. equity market and such ETFs. These securities may be more volatile than a broad cross-section of securities, and momentum may be an indicator that a security’s price is peaking. The value of an investment in the Market Neutral ETF may fall, sometimes sharply, and you could lose money by investing in the fund. The Market Neutral ETF may utilize derivatives and as a result, the Market Neutral ETF could lose more that the amount it invests. When utilizing short selling the amount the Market Neutral ETF could lose on a short sale is potentially unlimited because there is no limit on the price a shorted security might attain.
GLIF Risks: The Fund’s investments in infrastructure-related securities will expose the Fund to potential adverse economic, regulatory, political, legal and other changes affecting such investments. Rising interest rates could lead to higher financing costs and reduced earnings for infrastructure companies. Investments in foreign securities involve risks that differ from investments in securities of U.S. issuers because of unique political, economic and market conditions. Investments in securities of issuers located in emerging market economies (including frontier market economies) are generally riskier than investments in securities of issuers from more developed economies. Investing in securities that trade in and receive revenues in foreign currencies creates risk because foreign currencies may decline relative to the U.S. dollar, resulting in a potential loss to the Fund.
Shares are not individually redeemable and can be redeemed only in Creation Units. The market price of shares can be at, below or above the NAV. Brokerage commissions will reduce returns. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00PM Eastern time (when NAV is normally determined), and do not represent the returns you would receive if you traded shares at other times. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Some performance results reflect expense subsidies and waivers in effect during certain periods. Absent these waivers, results would have been less favorable. The owners of Shares may purchase or redeem Shares from the Fund in Creation Units only, and the purchase and sale price of individual Shares trading on an Exchange may be below, at, or above the most recently calculated NAV for such shares.
The Fund’s investment adviser, AGF Investments LLC (‘‘Adviser’’), has contractually agreed to waive the fees and reimburse expenses of the Fund until May 15, 2022, so that the total annual operating expenses (excluding interest, taxes, brokerage commissions and other expenses that are capitalized in accordance with generally accepted accounting principles, dividend, interest and brokerage expenses for short positions, acquired fund fees and expenses, and extraordinary expenses) (‘‘Operating Expenses’’) of the Fund are limited to 0.45% of average net assets. In addition, for USHG the Adviser has contractually agreed to reduce its management fees in an amount equal to any acquired fund fees and expenses incurred by the Fund from its investments in a fund advised by the Adviser. These undertakings can only be changed with the approval of the Board. The Fund has agreed that it will repay the Adviser for fees and expenses waived or reimbursed for a period of 36 months following such waiver or reimbursement, provided that repayment does not cause the Operating Expenses to exceed the lower of 0.45% of the Fund’s average net assets and the expense cap in place at the time of the Adviser’s waiver or reimbursement.
AGFiQ is a collaboration of investment professionals from Highstreet Asset Management Inc. (a Canadian registered portfolio manager) and AGF Investments, LLC (formerly FFCM LLC, a U.S. registered adviser). This collaboration makes-up the quantitative investment team. Distributor: Foreside Fund Services, LLC.