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AGF Announces Series of Product Changes to Refine and Enhance Its Line-up

December 11, 2017 • Announcements

Announcement includes management fee reductions, portfolio manager change, and risk rating changes

AGF Investments Inc. (AGF) today announced a series of product changes to refine and enhance their product line-up.

“At AGF, we continuously review our line-up to ensure our offerings are competitive, while addressing the product needs of our clients,” said Florence Narine, Senior Vice- President, Product, AGF Investment Inc.

The changes include management fee reductions, risk rating changes, new series launch and changes to a portfolio manager.

Management Fee Reductions

AGF is dedicated to offering investors strong products at competitive price points. As a result, AGF has decided to make broad changes to management fees across its product suite.

Effective December 11, 2017, we will be reducing management fees on 23 AGF funds. These management fee reductions, which range from 5 bps to 35 bps, and range across the MF and/or F series of the AGF Global Select Fund, AGF Total Return Bond Fund/Class and AGF U.S. Sector Class and select funds from our high-net-worth (Q/W) series, including our entire AGF Elements Portfolio lineup.

Fund

Series Q

Series W

Managed Solutions

AGF Elements Balanced Portfolio

0.80% to 0.70%

0.80% to 0.70%

AGF Elements Balanced Portfolio Class

0.80% to 0.70%

0.80% to 0.70%

AGF Elements Conservative Portfolio

0.80% to 0.70%

0.80% to 0.70%

AGF Elements Conservative Portfolio Class

0.80% to 0.70%

0.80% to 0.70%

AGF Elements Global Portfolio

0.90% to 0.80%

0.90% to 0.80%

AGF Elements Global Portfolio Class

0.90% to 0.80%

0.90% to 0.80%

AGF Elements Growth Portfolio

0.90% to 0.70%

0.90% to 0.70%

AGF Elements Growth Portfolio Class

0.90% to 0.70%

0.90% to 0.70%

AGF Elements Yield Portfolio

0.80% to 0.70%

0.80% to 0.70%

AGF Elements Yield Portfolio Class

0.80% to 0.70%

0.80% to 0.70%

Fund

Series Q

Series W

Global Equity Funds

AGF Global Dividend Class

1.00% to 0.90%

1.00% to 0.90%

AGF Global Dividend Fund

1.00% to 0.90%

1.00% to 0.90%

AGF Global Equity Class

1.00% to 0.90%

1.00% to 0.90%

AGF Global Equity Fund

1.00% to 0.90%

1.00% to 0.90%

Global Fixed Income Funds

AGF Floating Rate Income

1.00% to 0.80%

1.00% to 0.80%

AGF Global Convertible Bond Fund

0.95% to 0.80%

0.95% to 0.80%

U.S. Equity Funds

AGF American Growth Class

1.00% to 0.90%

1.00% to 0.90%

Specialty Funds

AGF Flex Asset Allocation Fund

1.00% to 0.85%

1.00% to 0.85%

AGF Global Sustainable Growth Equity Fund

1.00% to 0.90%

1.00% to 0.90%

Fund

MF Series

Series F

Global Equity Funds

AGF Global Select Fund

2.35% to 2.00%

-

Global Fixed Income Funds

AGF Total Return Bond Class

1.50% to 1.45%

0.90% to 0.75%

AGF Total Return Bond Fund

1.50% to 1.45%

0.90% to 0.75%

U.S. Equity Funds

AGF US Sector Class

2.20% to 2.00%

1.20% to 1.00%

“We believe the fee reductions will have positive implications for AGF unitholders giving them access to reduced fees and a fully integrated platform of high-quality, diversified investment solutions,” added Narine.

Risk Rating Change

AGF is changing the risk rating for 13 funds, with 11 decreasing their risk rating and two increasing their risk rating.

These changes result from compliance with the Canadian Securities Administrators’ Mutual Fund Risk Classification Methodology, which became effective on September 1, 2017. Previously, AGF followed a risk classification methodology based on the approach recommended by The Investment Funds Institute of Canada. No material changes have been made to the investment objectives, strategies or management of the Funds.

Fund Name

Previous Risk Rating

Revised Risk Rating

AGF Canadian Small Cap Fund

High

Medium to High

AGF Elements Conservative Portfolio

Low to Medium

Low

AGF Elements Conservative Portfolio Class

Low to Medium

Low

AGF Elements Growth Portfolio

Medium

Low to Medium

AGF Elements Growth Portfolio Class

Medium

Low to Medium

AGF Emerging Markets Fund

High

Medium to High

AGF Global Convertible Bond Fund

Low

Low to Medium

AGF Global Resources Class

High

Medium to High

AGF Global Select Fund

Medium to High

Medium

AGF Global Sustainable Growth Equity Fund

Medium

Medium to High

AGF High Yield Bond Fund

Low to Medium

Low

AGF Total Return Bond Class

Low to Medium

Low

AGF Total Return Bond Fund

Low to Medium

Low

Series I Launch

In January 2018, AGF will expand its offering of institutional fund series through the launch of 16 Series I Offerings providing institutional investors with additional ways to access AGF funds.

The following funds will be qualified on December 11, 2017 and launched in January 2018 (including three already qualified institutional series.)

  • AGF Global Resources Class
  • AGF Canadian Large Cap Dividend Fund
  • AGF Canadian Small Cap Fund
  • AGF Canadian Stock Fund
  • AGF Diversified Income Fund
  • AGF Dividend Income Fund
  • AGF EAFE Equity Fund
  • AGF Emerging Markets Bond Fund
  • AGF Emerging Markets Fund
  • AGF Fixed Income Plus Fund
  • AGF Global Bond Fund
  • AGF Global Equity Fund
  • AGF High Yield Bond Fund
  • AGF Monthly High Income Fund
  • AGF Total Return Bond Fund
  • AGF Traditional Income Fund

AGFiQ to Co-manage AGF Canadian Large Cap Dividend Fund/Class

AGFiQ Asset Management (through Highstreet Asset Management Inc.) will assume the portfolio management of the Canadian equity portion of AGF Large Cap Dividend Fund and AGF Canadian Large Cap Dividend Class replacing Connor Clark & Lunn Investment Management Ltd. effective today. 

“We are proud of the fact that we have the capabilities to manage this strategy internally,” said Kevin McCreadie, President and Chief Investment Officer, AGF Investments Inc. “This change reflects the growth and evolution of our firm. We have the right people in place to bring discipline and stability to our investment processes to deliver repeatable and consistent outcomes that better meet investor expectations.”

AGFiQ Asset Management is the quantitative investment platform for AGF powered by an intellectually diverse, multi-disciplined team that combines the complementary strengths of investment professionals across AGF and its affiliates from FFCM LLC and Highstreet Asset Management Inc. (Highstreet).

Highstreet has a strong record in managing Canadian dividend mandates, including AGF Dividend Income Fund.  Their proprietary research-driven approach has delivered consistent income above the benchmark and downside protection.

Using a similar objective and strategy, AGF Canadian Large Cap Dividend Fund/Class will be led by Stephen Duench and Mark Stacey alongside Stephen Way who manages the Global Equity portion, which remains unchanged.  

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 approximately $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.

Media Contact

Amanda Marchment

Director, Corporate Communications

416-865-4160

amanda.marchment@agf.com 

MEDIA

Media Contact

Amanda Marchment
Director, Corporate Communications
Phone: 416-865-4160
Email: amanda.marchment@agf.com

Karrie Van Belle
SVP, Head of Marketing and Communications
Phone: 416-865-4320