AGF Funds Inc. is lowering expenses on RSP clone funds in expectation of the elimination of foreign content limits to RSPs and other tax-deferred retirement plans.

The company said Tuesday any investors who hold AGF RSP clone funds when the amendments to the Income Tax Act become law will benefit from this new policy. The reduction will apply retroactively to Feb. 23, when the budget was introduced. The expense reductions will take effect only if the amendments eliminating the foreign content rules become law.

“The elimination of foreign content restrictions will provide Canadians with the ability to enjoy the benefits of a growing global economy and AGF is uniquely well-positioned to serve those needs,” Randy Ambrosie, executive vice-president, sales and marketing, AGF Funds, said in a statement.

Before making its decision, AGF said it surveyed 1,691 investment advisors from across Canada to help understand perceptions and needs regarding foreign content in their clients’ portfolios. According to the survey, 60% plan to allocate more than 30% of their clients’ RSP portfolios to foreign content. Almost half said they had no plans to do so over the next three months, while 8% said they would make major changes to their clients’ RSP portfolios over the next three months based on the new rules.

AGF said it move addresses all three scenarios by allowing investors to benefit through reduced fund expenses while giving them the freedom to choose how they will apply the pending rule changes to their portfolios.