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AGF Announces Proposed Fund Mergers and Investment Objective Changes

February 27, 2019 • Announcements

AGF Investments Inc. (AGF) today announced proposed fund mergers and investment objective changes to support AGF’s efforts to further streamline its product suite.

Securityholder meetings are scheduled on or about April 17, 2019. More detailed information will be sent to securityholders of the impacted funds (including details of the expected securityholder meetings) in advance of the 2019 securityholder meetings.

Proposed Fund Mergers

AGF is proposing to merge the following funds on or about May 17, 2019, subject to obtaining securityholder and regulatory approval:

  • AGF Flex Asset Allocation Fund into AGF Elements Conservative Portfolio
  • AGF Canadian Growth Equity Fund into AGFiQ Dividend Income Fund, which is a taxable merger

AGF Flex Asset Allocation Fund into AGF Elements Conservative Portfolio

Both funds aim to provide long-term returns with lower risk using an asset allocation strategy to gain exposure to equities, fixed income and money market instruments. Further, both funds achieve their investment objectives by investing in other investment funds. AGF Elements Conservative Portfolio has a lower risk rating than AGF Flex Asset Allocation.

AGF Canadian Growth Equity Fund into AGFiQ Dividend Income Fund

Both funds seek to provide long term capital growth by investing primarily in Canadian issuers. Both funds also have identical risk ratings, high short-term and long-term performance correlations and historically have exhibited similar exposure to Canadian equities.

“As part of our ongoing product review, we continue to streamline our product offerings keeping investors top-of mind,” said Florence Narine, Senior Vice-President, Head of Product, AGF. “Through these proposed fund mergers investors may benefit from reduced risk ratings and potential cost efficiencies as the result of being in a larger asset-based product.”

All costs and expenses associated with the mergers will be borne by AGF.

Proposed Investment Objective Changes

AGF is also proposing to change the investment objectives of AGF Global Resources Class and AGF Precious Metals Fund.

AGF Global Resources Class and AGF Precious Metals Fund – Proposed New Investment Objective for both of the respective funds

The proposed investment objective for both funds is to provide portfolio diversification and long-term capital growth. The funds invest primarily in equities and equity-related securities of companies operating in industries and sectors associated with real assets and located around the world. Real assets include, but are not limited to, infrastructure, energy, precious metals and real estate.

“The investment objective changes being proposed will give the portfolio manager of these funds additional flexibility when making investment choices, greater diversification and a broader reach to deliver a strategy where resources and precious metals can be enhanced across real asset classes, sectors and industries,” added Narine.

If approved, the changes in investment objectives are expected to take place on or about April 18, 2019.

If the investment objective changes for AGF Global Resources Class are approved, AGF Global Resources Class will also revise its investment strategies to reflect the shift in investment objective and change its name to AGF Global Real Assets Class on or about April 18, 2019. If the investment objective changes for AGF Precious Metals Fund are approved, AGF Precious Metals Fund will also revise its investment strategies to reflect the shift in investment objective and change its name to AGF Global Real Assets Fund on or about April 18, 2019.

ABOUT AGF MANAGEMENT LIMITED

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of 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 $38 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