AGF Canadian Large Cap Dividend Fund
AGF INVES TMENTS
AGF Canadian Large Cap Dividend Fund The ability to pay dividends is a good indication of a company’s sound financial shape and management’s expectations for the future, particularly if the dividends are increasing. In addition, as dividends represent a portion of a stock’s total return they can be a way to ‘get paid to wait’ when the stock price is under pressure due to macro variables. They may also offer downside protection to an investor’s overall portfolio as traditionally, the downside of dividend-paying stocks tend to be less than their non-paying counterparts.
Dividend-paying stocks historically outperform
Dividend-payers yield and price show resilience
Companies that pay out sustainable dividends are not only signalling their financial strength and discipline, but also their future earnings prospects.
Broadly, the S&P/TSX Composite Total Return Index took until June 16, 2014 to match its pre-2008 high, but many large-cap dividend-paying stocks had already fully recovered and gone on to set greater highs.
Growth of $10,000 from January 1990 to February 2015 $80,000 $70,000 $60,000 $50,000
Pre-2008 Price High
Reached Again Feb. 27 Date Price
Current Dividend Yield
S&P/TSX Composite Total Return Index
Stock
S&P/TSX Composite Price Return Index
Royal Bank of Canada
$60.11
April 16, 2010
$79.07
3.84%
Toronto-Dominion Bank
$38.15
April 23, 2010
$54.80
3.80%
Bank of Nova Scotia
$54.20
Oct 01, 2010
$66.81
4.31%
TELUS Corp
$32.88
Feb 01, 2013
$44.44
3.76%
5-Year AVG GIC
$40,000 $30,000 $20,000 $10,000 $0 Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
All stocks shown were top 10 holdings as of February 28, 2015. Source: AGF Investment Operations, Morningstar.
Source: Morningstar Direct as of February 28, 2015. † For illustrative purposes only. You cannot invest in an index.
References to specific securities are presented to illustrate the application of our investment philosophy only and are not to be considered recommendations by AGF Investments. The specific securities identified do not represent all of the securities purchased, sold or recommended for the portfolio and it should not be assumed that investments in the securities identified were or will be profitable.
130
AGF INVES TMENTS
AGF Canadian Large Cap Dividend Fund has successfully navigated the ups and downs of equity market cycles and interest-rate environments for nearly 30 years. Its record shows the merit of a dividend-paying stock investment strategy and the value of investing with AGF and Connor, Clark & Lunn (CC&L), both leading investment managers in the Canadian dividend category. The Dividend Advantage – Growth of $10,000 from the Fund’s start date to February 28, 2015 (Classic Series)
Expanding the dividend universe
$140,000
FUND PERFORMANCE (as of February 28, 2015) $120,000
$100,000
$80,000
$60,000
$40,000
1 YR.
3 YR.
5 YR.
10YR.
PSD*
AGF Canadian Large-Cap Dividend Fund
$121,292
MF Series
16.4% 13.3%
9.4%
–
5.0%
Classic Series
16.9% 13.7%
9.9%
6.9%
8.9%
AGF Canadian Large Cap Dividend Fund may invest in up to 49% foreign content – enabling the Fund to reduce concentration risk and dependency on the prospects of Canadian large-cap dividend payers.
*PSD = Performance start date
FUND CODES (for advisor reference) FE
DSC
LL
F
776
676
246
-
C$ MF
967
669
257
826
Series T
4200 4300 4400
-
Series V
3002 3102 3202
-
C$ Classic
CC&L is responsible for determining the ongoing optimal asset mix and deciding how much foreign content is held. Actual stock picks for the foreign-content allocation are made by the AGF Global Equity Team. Within this allocation, individual foreign country market weights are decided by a proprietary country allocation framework and combined with bottom-up security selection to add value and manage risk.
$20,000
$0 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
11
12
13 14
Source: AGF Investment Operations, February 28, 2015. Performance Start Date for the MF Series is February 7, 2006. Performance Start Date for the Classic Series is December 31, 1985.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus carefully before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. The payment of distributions should not be confused with a fund’s performance, rate of return or yield. If distributions paid by the fund are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by a fund, and income and dividends earned by a fund are taxable in your hands in the year they are paid. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base falls below zero, you will have to pay capital gains tax on the amount below zero. Publication Date: March 31, 2015.
FUND895 03-15-E
For the latest holding information on the Fund, please visit AGF.com and speak to your financial advisor. If you appreciate the benefits of investing in funds with a dividend bias, you may also want to consider AGF Global Dividend Fund.
AGF Canadian Large Cap Dividend Fund The ability to pay dividends is a good indication of a company’s sound financial shape and management’s expectations for the future, particularly if the dividends are increasing. In addition, as dividends represent a portion of a stock’s total return they can be a way to ‘get paid to wait’ when the stock price is under pressure due to macro variables. They may also offer downside protection to an investor’s overall portfolio as traditionally, the downside of dividend-paying stocks tend to be less than their non-paying counterparts.
Dividend-paying stocks historically outperform
Dividend-payers yield and price show resilience
Companies that pay out sustainable dividends are not only signalling their financial strength and discipline, but also their future earnings prospects.
Broadly, the S&P/TSX Composite Total Return Index took until June 16, 2014 to match its pre-2008 high, but many large-cap dividend-paying stocks had already fully recovered and gone on to set greater highs.
Growth of $10,000 from January 1990 to February 2015 $80,000 $70,000 $60,000 $50,000
Pre-2008 Price High
Reached Again Feb. 27 Date Price
Current Dividend Yield
S&P/TSX Composite Total Return Index
Stock
S&P/TSX Composite Price Return Index
Royal Bank of Canada
$60.11
April 16, 2010
$79.07
3.84%
Toronto-Dominion Bank
$38.15
April 23, 2010
$54.80
3.80%
Bank of Nova Scotia
$54.20
Oct 01, 2010
$66.81
4.31%
TELUS Corp
$32.88
Feb 01, 2013
$44.44
3.76%
5-Year AVG GIC
$40,000 $30,000 $20,000 $10,000 $0 Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan Jan 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
All stocks shown were top 10 holdings as of February 28, 2015. Source: AGF Investment Operations, Morningstar.
Source: Morningstar Direct as of February 28, 2015. † For illustrative purposes only. You cannot invest in an index.
References to specific securities are presented to illustrate the application of our investment philosophy only and are not to be considered recommendations by AGF Investments. The specific securities identified do not represent all of the securities purchased, sold or recommended for the portfolio and it should not be assumed that investments in the securities identified were or will be profitable.
130
AGF INVES TMENTS
AGF Canadian Large Cap Dividend Fund has successfully navigated the ups and downs of equity market cycles and interest-rate environments for nearly 30 years. Its record shows the merit of a dividend-paying stock investment strategy and the value of investing with AGF and Connor, Clark & Lunn (CC&L), both leading investment managers in the Canadian dividend category. The Dividend Advantage – Growth of $10,000 from the Fund’s start date to February 28, 2015 (Classic Series)
Expanding the dividend universe
$140,000
FUND PERFORMANCE (as of February 28, 2015) $120,000
$100,000
$80,000
$60,000
$40,000
1 YR.
3 YR.
5 YR.
10YR.
PSD*
AGF Canadian Large-Cap Dividend Fund
$121,292
MF Series
16.4% 13.3%
9.4%
–
5.0%
Classic Series
16.9% 13.7%
9.9%
6.9%
8.9%
AGF Canadian Large Cap Dividend Fund may invest in up to 49% foreign content – enabling the Fund to reduce concentration risk and dependency on the prospects of Canadian large-cap dividend payers.
*PSD = Performance start date
FUND CODES (for advisor reference) FE
DSC
LL
F
776
676
246
-
C$ MF
967
669
257
826
Series T
4200 4300 4400
-
Series V
3002 3102 3202
-
C$ Classic
CC&L is responsible for determining the ongoing optimal asset mix and deciding how much foreign content is held. Actual stock picks for the foreign-content allocation are made by the AGF Global Equity Team. Within this allocation, individual foreign country market weights are decided by a proprietary country allocation framework and combined with bottom-up security selection to add value and manage risk.
$20,000
$0 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
11
12
13 14
Source: AGF Investment Operations, February 28, 2015. Performance Start Date for the MF Series is February 7, 2006. Performance Start Date for the Classic Series is December 31, 1985.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus carefully before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. The payment of distributions should not be confused with a fund’s performance, rate of return or yield. If distributions paid by the fund are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by a fund, and income and dividends earned by a fund are taxable in your hands in the year they are paid. Your adjusted cost base will be reduced by the amount of any returns of capital. If your adjusted cost base falls below zero, you will have to pay capital gains tax on the amount below zero. Publication Date: March 31, 2015.
FUND895 03-15-E
For the latest holding information on the Fund, please visit AGF.com and speak to your financial advisor. If you appreciate the benefits of investing in funds with a dividend bias, you may also want to consider AGF Global Dividend Fund.
