AGF Funds Inc. today announced the terms of agreement with the Ontario Securities Commission (OSC) regarding market timing issues.

AGF has agreed to compensate investors in certain international funds  targeted by a small number of market timers between August, 2000, and June, 2003.  The total amount of AGF’s compensation approved by the OSC as part of the settlement is $29.2 million, which will be taken as a charge against fiscal 2004 earnings. 

The average payment is expected to be approximately $25 on a $5,000 account for investors who held these funds between August, 2000, and June, 2003.

“We take our responsibilities to investors very seriously,” said Blake Goldring, president and chief executive officer.  “AGF took pre-emptive voluntary action in July, 2003, to put in place effective measures to protect against market timing by clients and we continually monitor and adapt our practices to protect long-term investors.”

In reviewing market timing, the OSC stated that this was an industry-wide matter and is not an on-going issue.  They also stated that they found no evidence of market timing by insiders at AGF.

AGF is one of Canada’s premier investment management companies with offices across Canada and subsidiaries around the world. With approximately $31 billion in total assets under management, AGF serves more than one million investors with offerings across the wealth continuum.

AGF’s products and services include a diversified family of over 50 mutual funds, Harmony tailored investment program, AGF Private Investment Management and AGF Trust GICs, loans and mortgages.

FAQ on OSC Agreement