AGF Elements Advantage^TM*

AGF Elements Advantage was available on eligible units purchased prior to June 22, 2009. Over a three-year period, the portfolios' average annualized rate of return will perform at or above the customized benchmark or investors will receive up to 90 basis points* in new units. (One basis point equals 1/100 of one percent.)

Consider these scenarios that could occur after a three-year period.

• The portfolio meets or beats its benchmark - the Elements Advantage is not paid.
• The portfolio underperforms its benchmark by 75 basis points - the investor receives 75 basis points in new units.
• The portfolio underperforms its benchmark by 110 basis points - the investor receives 90 basis points in new units.

To most accurately assess the performance of the Elements portfolios, AGF has built customized Elements Advantage benchmarks.

• Each Advantage benchmark is a weighted average of the benchmarks** of each underlying fund.
• As the portfolios are fine-tuned to capitalize on market trends, each benchmark will be adjusted to reflect the new fund weightings.

Average annualized portfolio returns and Advantage benchmark returns are measured and compared at the end of a three-year period from the day following the trade date.

• Each time an investor buys units of a portfolio, a new three-year period will begin for that purchase and be measured the same way.
• If a portfolio falls short of the benchmark over the period, AGF will reduce its management fee by up to 90 basis points. This will be distributed to the investor in the form of new units.
• If the Elements Advantage is triggered after the three-year period, it will be paid on the 3rd Friday of the following month. Units will automatically be reinvested on the third Friday of that month.
• Any units redeemed or switched out of a portfolio before the three-year period will not be entitled to the distribution.
• For information on what constitutes a redemption and switch please see the AGF Group of Funds Simplified Prospectus.

Track your Elements Advantage units through AGF.com. Log in to My Account to access the AGF Elements Advantage Performance and Advantage Payout reports.

*As of June 22, 2009, AGF Elements Advantage^TM will no longer be offered on the purchase of new units of AGF Elements (trust version) Portfolios. For units purchased prior to June 22, 2009, AGF Elements Advantage^TM remains available on units of the Elements (trust version) Portfolios, except the Elements Yield Portfolio and Series T and V of the Elements Balanced Portfolio and Elements Growth Portfolio. Eligible units must be held for the entire three year period to qualify. AGF Elements Advantage^TM is not available on any of the Elements (corporate class) Portfolio Classes.

**For a full listing of underlying benchmarks used for the Elements Advantage, please see the AGF Group of Funds Annual Information Form.