AGF Funds Inc. has made portfolio manager and advisor changes on several mutual funds. All changes are effective July 9, 2001.

AGF Global Total Return Bond Fund will be managed by Scott Colbourne, Vice President, AGF Funds Inc., and advised by AGF International Advisors Company Limited. Mr. Colbourne replaces Harch Capital Management Inc.

AGF Global Total Return Bond Fund is the new name of AGF Short-Term High Yield Fund, which will be merged with AGF U.S. Income Fund.

Rory Flynn, AGF International Advisors Company Limited, will advise on Global Strategy U.S. Equity Fund, replacing AGF Funds Inc.

AGF International Advisors Company Limited has been appointed as an advisor to the Global Strategy World Bond Fund, which will be merging with and renamed as the AGF Global Government Bond Fund. AGF International Advisors Company Limited will be appointed as an advisor to the Global Strategy World Bond RSP Fund, which will be merging with and renamed as the AGF RSP Global Bond Fund.