TORONTO, Jan. 5, 2015 /CNW/ - In today's low yield environment, investors are looking to diversify beyond traditional bond portfolios to meet their fixed income needs. At AGF, we understand this need and have launched AGF Global Convertible Bond Fund, a hybrid investment solution that complements fixed-income holdings, while giving investors the opportunity to participate in rising equity markets.
"Today, investors are struggling to achieve acceptable bond returns and need alternative fixed-income solutions to diversify their portfolios to defend against a rise in rates," said Kevin McCreadie, President and Chief Investment Officer, AGF Investments Inc. "AGF Global Convertible Bond Fund offers the safety and diversification benefits of bonds with less exposure to interest-rate risk, while participating in equity market returns."
Convertible bonds are a hybrid debt instrument that can be converted to a specified number of shares in the issuing company at a set conversion price. They provide enhanced return potential versus conventional bonds, offer downside protection and are also less interest-rate sensitive than other traditional fixed-income instruments.
The low correlation to other bond types provides excellent diversification benefits for investors looking to complement their bond allocations.
The Fund is managed by David Stonehouse, Vice-President and Portfolio Manager, Acuity Investment Management Inc. He has nearly two decades of experience managing fixed income and is supported by the broader AGF Fixed Income Team.
A Nielsen Investor survey commissioned by AGF last year found that 56% of Canadians are concerned about the effect rising rates may have on their investment portfolio. To address this concern, AGF continues to work with financial advisors across Canada to provide them with the resources and products they need to help reshape the way investors think about risk.
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 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 over $35 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.
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