TORONTO, Feb. 17, 2021 (GLOBE NEWSWIRE) — AGF Investments Inc. (AGFI) today announced management fee reductions for AGF Global Real Assets Class and AGF Global Real Asset Fund and proposed investment objective changes for AGF Diversified Income Class and AGF Diversified Income Fund.
These changes reflect AGFI’s commitment to continually review its line-up to ensure clients have access to products that are relevant, competitive and responsive to market trends.
Management Fee Reductions
Effective as of March 1, 2021, AGFI will reduce the management fees for certain series of AGF Global Real Assets Class and AGF Global Real Assets Fund as follows:
|Fund||Series||Management Fee Change|
|AGF Global Real Assets Class||Series F||1.50% changed to 1.00%|
|AGF Global Real Assets Fund||Series F||1.25% changed to 1.00%|
|AGF Global Real Assets Fund||Series W||1.10% (maximum) changed to 0.85% (maximum)|
Proposed Investment Objective Changes
Subject to securityholder approval, AGFI is proposing to change the investment objectives of AGF Diversified Income Class and AGF Diversified Income Fund.
At the special meetings of securityholders to be held on April 14, 2021, subject to extension or adjournment thereof, securityholders of each of AGF Diversified Income Class and AGF Diversified Income Fund will be asked to approve the following proposed changes in investment objectives:
|Fund||Current Investment Objective||Proposed Investment Objective|
|AGF Diversified Income Fund||The Fund’s investment objective is to achieve a high level of current income and long-term growth of capital by investing primarily in a diversified portfolio of income, dividend and distribution paying Canadian securities including common shares, income trusts and other types of equity and fixed income securities.||The Fund’s investment objective is to provide long-term growth of capital through a combination of capital appreciation and interest income by investing primarily in a diversified portfolio of equity and fixed income securities which fit the Fund’s concept of sustainable development.|
|AGF Diversified Income Class||The Fund’s investment objective is to achieve a high level of current income and long-term growth of capital by investing primarily in units of AGF Diversified Income Fund.||The Fund’s investment objective is to provide long-term growth of capital by investing primarily in units of AGF Global Sustainable Balanced Fund (formerly named AGF Diversified Income Fund).|
If approved, the proposed investment objectives are expected to be implemented on or about April 30, 2021. Notwithstanding the receipt of securityholder approval, AGFI may postpone implementing the investment objective change for a fund until a later date (which shall be no later than December 31, 2021) or may elect not to proceed with the change at all, if it considers such decision to be in the best interests of the securityholders of that fund.
If approved, upon adoption of the proposed investment objective changes (or as of the date indicated below), additional changes will be made to AGF Diversified Income Class and AGF Diversified Income Fund, as applicable, including the following:
- Name Change: AGF Diversified Income Class will change its name to “AGF Global Sustainable Balanced Class” and AGF Diversified Income Fund will change its name to “AGF Global Sustainable Balanced Fund”.
- Management Fee Reduction: Effective on or about May 1, 2021, the management fee for the MF Series of each fund will be reduced from 2.35% to 1.90%. The management fees for all other series of the funds will remain the same.
- Change in Distribution Frequency: The distribution frequency for AGF Diversified Income Fund will change from monthly to annually. The last monthly distribution for AGF Diversified Income Fund is expected to be on or about April 30, 2021. There will be no dividend policy change for AGF Diversified Income Class.
- Risk Rating Changes: As of February 17, 2021, the risk rating of the funds is anticipated to change from “low” to “low to medium” upon adoption of the proposed investment objective.
Additional information regarding the proposed change in investment objectives, including a discussion of certain Canadian federal income tax considerations, will be provided in the funds’ management information circular. In advance of the special meetings, a notice-and-access document will be mailed to securityholders of record as at February 12, 2021. The notice-and-access document will describe the various ways in which securityholders can obtain a copy of the management information circular.
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 over $39 billion in total assets under management, AGF serves more than 700,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances the fund will be able to obtain its net asset value at a constant amount or that the full amount of your investment in the fund will be returned to you.
Director, Corporate Communications
Why interest in ESG investing is set to explode – BNN
If there’s any silver lining to come out of the COVID-19 pandemic, it’s that an increasing number of investors are thinking more carefully about the impact their holdings are having on the world.
In 2020, inflows into Canadian-based environmental, social and governance (ESG) funds topped $3.2 billion, while total net assets in ESG funds topped $22 billion, a 37% increase over the year before. The company also found that 12.3% of global asset managers have put a greater importance on ESG considerations since the pandemic began.
While interest in ESG investing was on the rise before the COVID-19 pandemic, people are paying even more attention to everything from climate change to the treatment of employees to pressing social causes. Combined with a push from CEOs of major corporations to identify ESG risks within their own businesses, and with more regulations – in Europe, but soon elsewhere – around sustainable finance-related disclosure requirements, interest in ESG will likely continue well into the future, says Priti Shokeen, head of ESG Research and Engagement at TD Asset Management Inc.(TDAM).
“There’s an ever-growing awareness about systemic risks that we are facing as a society such as our rapidly changing climate and social inequalities, and an unwillingness to keep the status quo, whether that’s through our personal values or through our investments.” she says. “The industry also reached an inflection point over the last two- three years with maturing ESG strategies and funds showing that ESG does not take away from investment performance. The COVID-19 pandemic was the first true test of that and ESG showed potential for downside protection.”
Currently, assets under management (AUM) in Canadian-listed ESG-focused funds account for less than 1% of AUM in all Canadian funds – $22 billion compared to about $2 trillion, according to ISS – but that number could see a dramatic increase over the next several years.
For one thing, the market continues to evolve from its traditional do-no-harm focus, which mainly involved companies taking action against issues that could hurt their business, to one that’s more purpose focused, where doing something good – for communities, customers and the planet at large – drives business decisions.
With more people wanting to understand how companies they are investing in, are being responsible – that may be reducing their carbon footprint or offering staff at least minimum wage – businesses will need to be more transparent about their ESG risks, says Shokeen.
“Companies will be disclosing ESG risks more systematically, and that information will help people make better investment decisions,” she says.
It also helps that millennials are more ESG minded. Morgan Stanley found that while the interest in sustainable investing among all investors climbed to 85% in 2019 from 71% in 2015, it jumped to 95% in 2019 from 84% in 2015 among millennials. That’s important because this generation will inherit billions of dollars from their boomer parents over the next decade.
Given their interest in ESG, much of that money will go into ESG-related funds and to the advisors who embrace sustainable investing.
“There is a greater willingness among millennials and increasingly among high net worth investors to act through their spending and investing,” notes Shokeen. “Advisors need to educate themselves so they can talk knowledgeably about these products, especially given the proliferation of ESG.”
More options for investors
As interest in ESG increases, so too will the kinds of products investors can buy. While a number of ESG-focused mutual funds have been created over the years, the ESG ETF market is one area that many investors and advisors are now focused on. ETFs by their nature are low-cost, highly liquid and easy to buy, which is ideal for someone who wants to build any portfolio, but especially one that has a particular focus.
Over the last few years, a number of ESG ETFs have come to market globally with different approaches – some focus on gender parity among executives or technologies that advance renewable energy, others simply remove fossil fuels from existing funds. TDAM, which has long been implementing ESG practices into its various mutual funds, has recently launched three ETFs that incorporate a variety of ESG approaches into one investment vehicle.
The three funds – TD Morningstar ESG Canada Equity Index ETF (TMEC), TD Morningstar ESG U.S. Equity Index ETF (TMEU) and TD Morningstar ESG International Equity Index ETF (TMEI) – give investors exposure to companies with high ESG ratings across a broad number of factors, including alignment of management compensation with shareholder returns, health and safety issues, environmental impact and more. The funds, which follow indexes designed by Morningstar, using ESG ratings provided by Sustainalytics, a Morningstar Company, also stay away from tobacco, weapons and gambling operations, as well as those companies that have been embroiled in controversies, such as bribery, corruption and human rights violations.
“With these ETFs, investors can access best-in-class ESG companies and also closely track the broad parent index,” she says. “The main idea is to provide a low-cost solution, that provides market-like return while having positive ESG exposure and aligns with your values”
As more companies take ESG into account, and as a greater number of investors seek out more responsible products, there may come a point when ESG will be fully integrated into investing mindset, however, says Shokeen, “the levels of integration within companies, and investment process will provide room for differentiated ESG investment strategies.”
Until then, Shokeen thinks that over the next five to 10 years, ESG related disclosures will remain a focus and we’ll see an increasing push towards standardization, while responsible investing will go even more mainstream.
“At a simple level, this is common sense,” she says. “Companies that negatively impact their environment or people will get penalized, while the ones who take it seriously will get more attention from investors.”
The information contained herein has been provided by TD Asset Management Inc. and is for information purposes only. The information has been drawn from sources believed to be reliable. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. Certain statements in this document may contain forward-looking statements (“FLS”) that are predictive in nature and may include words such as “expects”, “anticipates”, “intends”, “believes”, “estimates” and similar forward-looking expressions or negative versions thereof. FLS are based on current expectations and projections about future general economic, political and relevant market factors, such as interest and foreign exchange rates, equity and capital markets, the general business environment, assuming no changes to tax or other laws or government regulation or catastrophic events. Expectations and projections about future events are inherently subject to risks and uncertainties, which may be unforeseeable and may be incorrect in the future. FLS are not guarantees of future performance. Actual events could differ materially from those expressed or implied in any FLS. A number of important factors including those factors set out above can contribute to these digressions. You should avoid placing any reliance on FLS. Commissions, management fees and expenses all may be associated with investments in ETFs. Please read the prospectus and ETF Facts before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. ETF units are bought and sold at market price on a stock exchange and brokerage commissions will reduce returns. TD ETFs are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank. Morningstar® Canada Sustainability Extended IndexSM, Morningstar® US Sustainability Extended IndexSM and Morningstar® Developed Markets ex-North America Sustainability Extended IndexSM are service marks of Morningstar, Inc. and have been licensed for use for certain purposes by TD Asset Management Inc. The TD Morningstar ESG Canada Equity Index ETF, TD Morningstar ESG International Equity Index ETF and TD Morningstar ESG U.S. Equity Index ETF (collectively, the “TD ESG ETFs”) are not sponsored, endorsed, sold or promoted by Morningstar, and Morningstar makes no representation regarding the advisability of investing in the TD ESG ETFs. ®©2020 Morningstar is a registered mark of Morningstar Research Inc. All rights reserved. All trademarks are the property of their respective owners. ®The TD logo and other trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
1 SIMFUND Canada, ©Institutional Shareholder Services Canada Inc. (Investor Economics, A Division of ISS Market Intelligence) 2021. All rights reserved.
2 Morgan Stanley. Sustainable Signals: Individual Investor Interest Driven by Impact, Conviction and Choice
The truth about Warren Buffett’s investment track record : Morning Brief – Yahoo Canada Finance
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Monday, March 1, 2021
Warren Buffett has had years of underperformance and a lot of bad stock picks
For more than half a century, he’s been responsible for the performance of Berkshire and its legendary stock portfolio, which have long track records of market-beating returns.
But here’s what every serious investor needs to know about Buffett: despite above-average performance, there have been many years Berkshire underperformed the market and there have been many individual stock trades that have lost mountains of money.
Long-term outperformance comes with many years of underperformance
Warren Buffett’s annual letter to Berkshire shareholders was released on Saturday, and as usual the first page compares the annual performance of Berkshire against that of the S&P 500 (^GSPC) since 1965.*
Berkshire shares have seen an average annual return of 20.0% compared to the S&P 500’s 10.2% gain during that period.
But as you can see from the individual data points, there are many years when the S&P outperformed Berkshire.
A good long-term investment strategy will not produce desired returns year in and year out. Rather, it’ll make progress toward some long-term goal over time as fat years more than offset lean years.
“Whatever today’s figures, Charlie Munger, my long-time partner, and I firmly believe that, over time, Berkshire’s capital gains from its investment holdings will be substantial,” Buffett wrote on Saturday.
Furthermore, it’s worth noting that neither Berkshire nor the S&P saw many years where they delivered an average return. Most years either saw massive gains or very disappointing performance. Average almost never happens in markets.
Great stock pickers pick a lot of losers
And just because Buffett may be one of the greatest stock pickers in history doesn’t mean all of his stock picks have been winners over time.
Just a quick glance at Berkshire’s current top 15 stock investments reveals plenty of positions that are held below cost (i.e. they’ve lost money).
To his credit, few people are more vocal about Buffett’s mistakes than Buffett himself.
In 2020, Berkshire booked a $9.8 billion write-down on those assets. One massive “mistake”he discussed in his annual letter was Precision Castparts (PCC), a once publicly-traded company that Berkshire acquired outright in 2016 in a $37 billion deal.
“I paid too much for the company,” Buffett wrote. “I believe I was right in concluding that PCC would, over time, earn good returns on the net tangible assets deployed in its operations. I was wrong, however, in judging the average amount of future earnings and, consequently, wrong in my calculation of the proper price to pay for the business.”
“PCC is far from my first error of that sort,” he added. “But it’s a big one.”
It’s not hard to find times Buffett lost money on a trade or missed out on a big opportunity. Just a year ago, Berkshire dumped airline stocks near their lows just before they roared back along with the other reopening trades.
But a successful investor shouldn’t be judged by his or her mistakes. Rather, they should be judged by the degree to which they are able to achieve their long-term goals.
This goes for all investors who will repeatedly buy too late, sell too early, and miss out on big opportunities that become obvious in hindsight.
So if you’re making a lot of mistakes but have a sound strategy and the discipline to stick to it during periods of underperformance, then maybe you too can be as imperfectly successful as Warren Buffett.
*Since 2019, Buffett has presented Berkshire’s performance as measured by market value. Prior to that, it was book value. Buffett made the change because he felt market value was going to better reflect the performance of the company. For our purposes, all you need to know is that both Berkshire’s book value and market value have smoked the S&P 500 over that half-century.
What to know today
9:45 a.m. ET: Markit US Manufacturing PMI, February final (58.5 expected, 58.5 in prior print)
10:00 a.m. ET: Construction spending month-over-month, January, (0.8% expected, 1.0% in December)
10:00 a.m. ET: ISM Manufacturing index, February (58.6 expected, 58.7 in January)
4:05 p.m. ET: Zoom Video Communications (ZM) is expected to report adjusted earnings of 79 cents per share on revenue of $811.04 million
4:05 p.m. ET: Novavax (NVAX) is expected to report an adjusted loss of $2.24 per share on revenue of $202.60 million
4:05 p.m. ET: Nio (NIO) is expected to report an adjusted loss of $3.77 per share on revenue of $16.38 billion
After market close: Clover Health Investments (CLOV) is expected to report an adjusted loss of 86 cents per share on revenue of $167.00 million
European stocks climb higher as bond markets stabilize [Yahoo Finance UK]
Yahoo Finance Highlights
Anthem Entertainment Attracts New Equity Investment | FYIMusicNews – FYI Music News
The Ontario Teachers’ Pension Plan Board has increased its equity investment in Canadian-based rights company Anthem Entertainment “in order to facilitate the business’s strategy for continued growth.” In addition, the company has announced completion of a new revolving credit facility of $400 million plus a $150 million incremental facility that allows it to expand the maximum amount allowed on its line of credit.
Anthem CEO Helen Murphy stated in a media release that “I am grateful to Ontario Teachers’ for their confidence in our strategy and for their continued support.”
Continuing, she added: “Over the past few years, we have successfully expanded through a strong combination of organic growth and acquisitions, enabling us to further diversify our service offerings and repertoire base, making us more attractive to artists, songwriters, composers, and content producers.
Again, from the announcement: “We believe that with this additional equity investment and our new credit facility we are well positioned to make the most of the opportunities across our music publishing, recorded music, production music, and film and television services businesses. We are also thankful to the banks in our syndicate, many of whom have been long time supporters of Anthem Entertainment throughout our 17-year history.”
In September 2019, Anthem acquired 50% of Nashville based Wrensong led by music row leader Ree Guyer. The deal also included a co-venture with Wrensong Publishing Corp. that includes a catalogue of over twenty #1 country hits, including Old Dominion’s Make It Sweet, No Such Thing As A Broken Heart, Hotel Key, #1 hits by Dierks Bentley, The Band Perry, Blake Shelton, Carrie Underwood, and Jason Aldean.
In October of the same year, Anthem has acquired a catalogue of songs from Boardwalk Music Group, which were co-written by songwriter Eric Frederic (Ricky Reed). The catalogue includes some of the world’s biggest hits by artists such as Halsey, Leon Bridges, Lizzo, and Meghan Trainor. The LA-based publishing and artist development company was founded by songwriter and creative executive Evan “Kidd” Bogart, the son of Neil Bogart of Casablanca Records fame.
Then in November 2019, Anthem acquired a catalogue of songs from songwriter and producer Doc McKinney. Key assets included The Weeknd’s Wicked Games, Starboy, Die For You, and Pray For Me.
In February 2020, Gord Bamford extended his worldwide publishing deal with the Anthem Entertainment. Anthem also acquired Bamford’s masters from Cache Entertainment including all albums from 2001’s God’s Green Earth, to Diamonds In A Whisky Glass (due out later this year). Bamford is the two-time winner of the CMA Global Country Artist Award, with 25 Top 10 singles in Canada including the No. 1 hits When Your Lips Are So Close and Dive Bar.
Founded in 2004 as Ole, the Ontario Teachers Pension Fund has been a key investor in the Canadian rights management company. It expanded its position in acquiring company co-founder Robert Ott’s position in the company in 2018 and now holds a controlling interest in the privately held firm.
In 2015, the company acquired all the rights to the Anthem Entertainment brand, including Anthem Film & Television Productions, and the recorded music catalogue highlighted by recordings by Rush as well as Max Webster, Big Wreck, Ian Thornley, Steven Page, The Tea Party, and Max Webster. The company rebranded itself as Anthem Entertainment in 2019
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