Liquefied Natural Gas, Silver and Gold Can Be the Best Investments for 2020

December 2, 2019

Stephen Bonnyman, MBA, CFA, is Co-Head, North American Equity Research and Portfolio Manager of AGF Management Limited’s Canadian and global resources portfolios.

Working closely with the AGF research teams, Mr. Bonnyman focuses on identifying resource companies with solid balance sheets, advantaged cost structures, attractive valuations or unrecognized growth. Mr. Bonnyman is a member of the AGF Asset Allocation Committee — AAC — which is comprised of senior portfolio managers who are responsible for various regions and asset classes.

In this 2,879 word interview, exclusively available in the Wall Street Transcript, Mr. Bonnyman reveals his best bets for investors in real assets.

“AGF Global Real Asset Fund was constituted in the first quarter of this year looking for a solution for clients to provide an inflation hedge and a market hedge that didn’t require them to be active traders.

The real asset fund effectively is designed as a long-only public market portfolio to hedge against inflation and to be uncorrelated with the broader market.

We do that by focusing the investment universe on infrastructure, utilities, real estate, energy, materials and precious metals.

The fund has the capability of investing globally in equities, in debt, in physical precious metals, and it utilizes a derivatives overlay strategy to either enhance the yield or modify the risk characteristics of the securities within the portfolio.”

In the interview, Mr. Bonnyman reveals many of his top investment prospects:

“We have a bias toward production since, for the most part, what we’re trying to do is gain leverage to the gold price and reflect that into the portfolio. But we do own explorers.

As I had mentioned, where we see mispriced opportunities or where we see a catalyst in place, where a stock can make a material difference in its valuations over a couple of years, we will step in. In fact, one of our larger precious metals positions is a company called SilverCrest (NYSEAMERICAN:SILV) where they are approaching a production decision. It’s an extraordinary geological opportunity, and it’s been a great stock for us.”

Get the rest of Mr. Bonnyman’s exclusive 2,978 word interview, only in the Wall Street Transcript.