TORONTO, April 26, 2018 (GLOBE NEWSWIRE) -- AGF Investments Inc. (AGF) today announced a series of changes to streamline their product line-up, including mergers, terminations, fund name changes, expansion of gold label series, management fee reductions, and the introduction of an administration fee.
“We continually review our line-up to ensure we have the best representation of our strengths, while providing our clients with the choice and diversity needed to adapt to the evolving investment landscape,” said Florence Narine, Senior Vice-President, Head of Product, AGF.
Mergers
AGF is proposing merging the following funds on or about August 3, 2018, subject to obtaining securityholder and regulatory approval, as applicable:
- AGF Traditional Income Fund will be merging into AGF Strategic Income Fund (formerly AGF Canadian Asset Allocation Fund)
- AGF Monthly High Income Fund will be merging into AGF Elements Yield Portfolio
AGF Traditional Income Fund and AGF Strategic Income Fund (formerly AGF Canadian Asset Allocation Fund) aim to provide investors with a diversified portfolio of equities and fixed income and have similar objectives of providing capital growth and income. As well, the funds are both categorized as Canadian balanced funds and have identical risk ratings.
AGF Monthly High Income Fund and AGF Elements Yield Portfolio aim to provide investors a diversified portfolio of both equities and fixed income, with complementary objectives of providing a high level of current income (targeted 5% distribution).
“The changes we are announcing today reflect our strategy to not only simplify our product set, but to ensure that we have the right products in place to focus our efforts on those strategies where we can deliver value-added and differentiated opportunities, in particular within yield, global and our quantitative platforms,” said Kevin McCreadie, President and Chief Investment Officer, AGF.
Securityholder meetings of the merging funds will be held on or about June 14, 2018. The AGF Monthly High Income Fund and AGF Elements Yield Portfolio merger is also subject to regulatory approval. All costs and expenses associated with the mergers will be borne by AGF. More detailed information will be sent to investors of the merging funds (including details of the expected investor meetings) in advance of the 2018 securityholder meetings.
Fund Terminations
AGF is announcing today its intention to terminate the following funds:
- AGF U.S. Risk Managed Fund (Series S only) effective on or about May 14, 2018.
- AGF EAFE Equity Fund, effective on or about July 3, 2018.
The decision to terminate these funds was driven by the combination of a small number of securityholders, relatively low assets and the cost associated with maintaining such small products. Further, AGF offers investors other products within its line-up with similar investment objectives and exposures. Units of the funds are no longer available for purchase.
Fund Name Changes
Effective today, AGF is changing the names of the following five funds:
| Current Fund Name | New Fund Name |
| AGF Dividend Income Fund | AGFiQ Dividend Income Fund |
| AGF U.S. Sector Class | AGFiQ U.S. Sector Class |
| AGF Global Balanced Fund | AGF Global Strategic Balanced Fund |
| AGF Canadian Asset Allocation Fund | AGF Strategic Income Fund |
| AGF Canadian Stock Fund | AGF Canadian Growth Equity Fund |
AGFiQ Dividend Income Fund and AGFiQ U.S. Sector Class have been renamed to reinforce their management under the AGFiQ brand.
AGF Global Strategic Balanced Fund and AGF Strategic Income Fund have been renamed to better reflect the funds’ investment objectives and strategies, while AGF Canadian Growth Equity Fund’s new name better reflects the alignment of the fund to the existing corporate class option.
Expansion of Gold Label Series
AGF is also announcing the qualification and launch of 15 high-net-worth series (Q/W) on or about May 7, 2018.
| Fund Name | Series Q | Series W |
| AGF Strategic Income Fund | √ | √ |
| AGF Canadian Large Cap Dividend Class | √ | |
| AGF Canadian Large Cap Dividend Fund | √ | |
| AGF Diversified Income Class | √ | |
| AGF Diversified Income Fund | √ | |
| AGFiQ Dividend Income Fund | √ | |
| AGF Emerging Markets Balanced Fund | √ | √ |
| AGF Emerging Markets Bond Fund | √ | |
| AGF Emerging Markets Class | √ | |
| AGF Emerging Markets Fund | √ | |
| AGF Global Select Fund | √ | √ |
| AGF U.S. Small-Mid Cap Fund | √ |
Management Fee Reductions
Effective today, Series Q and W management fees for AGFiQ U.S. Sector Class are reduced:
| Series Q | Series W | |
| AGFiQ U.S. Sector Class current | 1.10 | 1.10 |
| AGFiQ U.S. Sector Class revised | 0.90 | 0.90 |
Introduction of Fixed Administration Fee
AGF is also announcing today its intention to introduce a fixed registrar and transfer agency administration fee, effective October 1st, 2018 (subject to securityholder approval). In exchange, AGF will pay certain operating expenses relating to registrar and transfer agency services directly. The funds will continue to pay for all other operating expenses.
The administration fee applies to all AGF Group of Funds MF Series, Series D, Series F, Series I, Series J, Series T, Series V, and Classic Series securities. As well, this change applies to all Harmony Pools and Portfolios’ Embedded Series, Wrap Series, Series T, Series V and Series F securities.
A meeting to obtain securityholder approval for this proposal will be held on or about June 14, 2018.
ABOUT AGF MANAGEMENT LIMITED
Founded in 1957, AGF Management Limited (AGF) is a diversified global asset management firm with retail, institutional, alternative and high-net-worth businesses. As an independent firm, AGF brings a disciplined approach to delivering excellence in investment management and providing an exceptional client experience. AGF’s suite of diverse 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 $37 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.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements about AGF and its funds. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as ‘expects,’ ‘estimates,’ ‘anticipates,’ ‘intends,’ ‘plans,’ ‘believes’ or negative versions thereof and similar expressions, or future or conditional verbs such as ‘may,’ ‘will,’ ‘should,’ ‘would’ and ‘could.’ In addition, any statement that may be made concerning possible future action on our part, is also a forward-looking statement. Forward-looking statements are based on certain factors and assumptions, including, but not limited to obtaining securityholder and regulatory approvals. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about our operations, economic factors and the financial services industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by us. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Other than specifically required by applicable laws, we are under no obligation (and expressly disclaim any such obligation) to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise.
Media Contact
Amanda Marchment
Director, Corporate Communications
416-865-4160
amanda.marchment@agf.com