AGF Funds Inc. today launched two new funds to expand its a suite of yield offerings. AGF Monthly High Income Fund and AGF Diversified Dividend Income Fund deliver a balance of income and long-term capital gains by investing in a diversified portfolio of high-yield bonds, dividend-paying securities and income trusts.

Both funds will be managed by Cypress Capital Management Ltd., a leader in high-yield money management with extensive experience in income trusts.

“Income-oriented investors can now choose from a continuum of yield products, while enjoying the comfort of AGF’s disciplined approach to investing,” said Randy Ambrosie, executive vp, sales and marketing, AGF Funds Inc. “These new products provide investors with both yield and income trust exposure using a conservative and diversified approach which mitigates risk.”

The AGF Monthly High Income Fund is a diversified income trust alternative and one of the most conservative in the income trust category. The fund provides a diversified income stream with a current targeted annual distribution of 6% to be paid monthly. The distribution may include return of capital, allowing for additional financial planning and flexibility.

For the more aggressive investor, AGF Diversified Dividend Income Fund is a fully diversified dividend fund with limited income trust exposure, emphasizing a broad equity weighting to allow the managers to pursue the most optimistic market opportunities. The distribution is currently targeted at 4.5% annually. The monthly payout will be a mix of income and capital gains, providing a tax advantage over traditional dividend funds, and may also include a payout of a tax-deferrable return of capital.

AGF is also reinstituting a 1.5% annual current distribution on the AGF Canadian Large Cap Dividend Fund, to be paid monthly. The fund provides long-term returns for the more conservative investor.

Earlier this month AGF increased the amount and the frequency of distributions on two core balanced funds, AGF Canadian Balanced Fund and AGF Canadian Real Value Balanced Fund effective January 31.

http://www.newswire.ca/en/releases/archive/January2005/27/c7529.html