AGF Reduces Fees on Select Fee-Based Funds

Committed to helping advisors transition to fee-based platform

TORONTO, April 17, 2015 /CNW/ - AGF Investments Inc. (AGF), today announced the reduction of management fees on select fee-based funds (Series F) to help a growing number of advisors as they transition to a fee-based business.

With the regulatory changes from CRM2, Canadian investors are paying more attention to the costs associated with investing and as a result more advisors are adopting a fee-based approach to provide greater transparency.  

In fact, nearly 45% of the inflows into funds over the next decade are forecasted to be through fee-based and discretionary accounts on a net basis. Research suggests that – even in the absence of future regulatory action – the trend towards unbundled fee-based compensation will increase due to changes in demand, competitive challenges and a need for transparency. (Source: Investor Economics 2013 Household Balance Sheet, Page 44)

"This is a growing business segment and AGF is lowering our pricing to ensure we are competitively positioned for this evolution towards a fee-based business model," said Gordon Forrester, Executive Vice-President, Product and Marketing and Head of Retail, AGF Investments Inc.

Effective April 1, the management fees were lowered on the following Series F funds:

Fund

Revised Management Fee

AGF Diversified Income Class

0.90%

AGF Diversified Income Fund

0.90%

AGF Global Aggregate Bond Fund

0.90%

AGF Tactical Income Fund

0.90%

AGF also reduced fees on 12 Series F funds 10 to 55 basis points in 2014. Series F is offered on a broad selection of core investment strategies enabling advisors to construct well-diversified and efficient portfolios.

"These changes are just one of the ways AGF is ensuring that advisors are prepared for the changes CRM2 will bring," added Forrester. "We will continue to create practice development tools and resources to ensure advisors help their clients understand the importance of their professional advice. "

AGF Gold Label: Expands Offering

Launched in 2012, AGF Gold Label provides affluent investors with access to reduced pricing based on the amount they invest as well as the opportunity to reduce pricing further through household and account aggregation.

Today, we are announcing additional Series Q (individually priced) and Series W (fee-based) funds to expand the investment solutions offered with AGF Gold Label.

Funds include:

Series Q 


Series W

  • AGF Canadian Large Cap Dividend Class

  • AGF Global Dividend Fund
  • AGF Canadian Large Cap Dividend Fund

  • AGF Global Equity Class
  • AGF Global Aggregate Bond Fund

  • AGF Global Equity Fund
  • AGF Equity Income Focus Fund


  • AGF Income Focus Fund


  • AGF Tactical Income Fund


  • AGF Global Equity Class


  • AGF Global Equity Fund


  • AGF Elements Balanced Portfolio


  • AGF Elements Conservative Portfolio


  • AGF Elements Conservative Portfolio Class


  • AGF Elements Global Portfolio


  • AGF Elements Global Portfolio Class


  • AGF Elements Growth Portfolio


  • AGF Elements Growth Portfolio Class


Acuity Portfolio Managers Join AGF

Effective today, Martin Grosskopf and David Stonehouse will become portfolio managers of AGF Investments Inc. as part of the integration of the AGF and Acuity businesses.

Andy Kochar becomes an Associate Portfolio Manager for AGF Investments Inc. 

Martin Grosskopf manages AGF Clean Environment Equity Fund, while David Stonehouse manages AGF Global Convertible Bond Fund, AGF Fixed Income Plus Fund, AGF Diversified Income Fund and AGF Diversified Income Class.

Also, following an annual review based on the approach recommended by the Fund Risk Classification Task Force of The Investment Funds Institute of Canada, AGF has determined that it is appropriate to change the risk ratings in the following AGF Funds effective April 17.

Fund Name

Current Risk Rating

New Risk Rating

AGF Canadian Large Cap Dividend Fund

Low to Medium

Medium

AGF Canadian Large Cap Dividend Class

Low to Medium

Medium

AGF European Equity Class

Medium

Medium to High

No material changes have been made to the investment objective or strategy for AGF Canadian Large Cap Dividend Fund, AGF Canadian Large Cap Dividend Class or AGF European Equity Class.

About AGF Management Limited

AGF Management Limited is one of Canada's premier independent investment management firms with offices across Canada and subsidiaries around the world. AGF's products include a diversified family of mutual funds, mutual fund wrap programs and pooled funds. AGF also manages assets on behalf of institutional investors including pension plans, foundations and endowments as well as for private clients. With over $36 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.

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SOURCE AGF

For further information: Media Contact: Pamela Marchant, Vice-President, Marketing & Communications, 416-815-6205,pamela.marchant@agf.com

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