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AGF Announces Management Fee Reductions and Proposed Investment Objective Changes

February 17, 2021 • Announcements

AGF Investments Inc. (AGFI) today announced management fee reductions for AGF Global Real Assets Class and AGF Global Real Asset Fund and proposed investment objective changes for AGF Diversified Income Class and AGF Diversified Income Fund.

These changes reflect AGFI’s commitment to continually review its line-up to ensure clients have access to products that are relevant, competitive and responsive to market trends.

Management Fee Reductions

Effective as of March 1, 2021, AGFI will reduce the management fees for certain series of AGF Global Real Assets Class and AGF Global Real Assets Fund as follows:

Fund Series Management Fee Change
AGF Global Real Assets Class Series F 1.50% changed to 1.00%
AGF Global Real Assets Fund Series F 1.25% changed to 1.00%
AGF Global Real Assets Fund Series W 1.10% (maximum) changed to 0.85% (maximum)

Proposed Investment Objective Changes

Subject to securityholder approval, AGFI is proposing to change the investment objectives of AGF Diversified Income Class and AGF Diversified Income Fund.

At the special meetings of securityholders to be held on April 14, 2021, subject to extension or adjournment thereof, securityholders of each of AGF Diversified Income Class and AGF Diversified Income Fund will be asked to approve the following proposed changes in investment objectives:

Fund Current Investment Objective Proposed Investment Objective
AGF Diversified Income Fund The Fund’s investment objective is to achieve a high level of current income and long-term growth of capital by investing primarily in a diversified portfolio of income, dividend and distribution paying Canadian securities including common shares, income trusts and other types of equity and fixed income securities. The Fund’s investment objective is to provide long-term growth of capital through a combination of capital appreciation and interest income by investing primarily in a diversified portfolio of equity and fixed income securities which fit the Fund’s concept of sustainable development.
AGF Diversified Income Class The Fund’s investment objective is to achieve a high level of current income and long-term growth of capital by investing primarily in units of AGF Diversified Income Fund. The Fund’s investment objective is to provide long-term growth of capital by investing primarily in units of AGF Global Sustainable Balanced Fund (formerly named AGF Diversified Income Fund).

If approved, the proposed investment objectives are expected to be implemented on or about April 30, 2021. Notwithstanding the receipt of securityholder approval, AGFI may postpone implementing the investment objective change for a fund until a later date (which shall be no later than December 31, 2021) or may elect not to proceed with the change at all, if it considers such decision to be in the best interests of the securityholders of that fund.

If approved, upon adoption of the proposed investment objective changes (or as of the date indicated below), additional changes will be made to AGF Diversified Income Class and AGF Diversified Income Fund, as applicable, including the following:

  • Name Change: AGF Diversified Income Class will change its name to “AGF Global Sustainable Balanced Class” and AGF Diversified Income Fund will change its name to “AGF Global Sustainable Balanced Fund”.
  • Management Fee Reduction: Effective on or about May 1, 2021, the management fee for the MF Series of each fund will be reduced from 2.35% to 1.90%. The management fees for all other series of the funds will remain the same.
  • Change in Distribution Frequency: The distribution frequency for AGF Diversified Income Fund will change from monthly to annually. The last monthly distribution for AGF Diversified Income Fund is expected to be on or about April 30, 2021. There will be no dividend policy change for AGF Diversified Income Class.
  • Risk Rating Changes: As of February 17, 2021, the risk rating of the funds is anticipated to change from “low” to “low to medium” upon adoption of the proposed investment objective.

Additional information regarding the proposed change in investment objectives, including a discussion of certain Canadian federal income tax considerations, will be provided in the funds’ management information circular. In advance of the special meetings, a notice-and-access document will be mailed to securityholders of record as at February 12, 2021. The notice-and-access document will describe the various ways in which securityholders can obtain a copy of the management information circular.

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 over $39 billion in total assets under management, AGF serves more than 700,000 investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.


Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances the fund will be able to obtain its net asset value at a constant amount or that the full amount of your investment in the fund will be returned to you.

 

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
Chief Marketing & Innovation Officer
Phone: 416-865-4320

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