AGF Funds Inc. announced today it is adding a dedicated emerging markets equities component and manager to Harmony Overseas Equity Pool, effective May 2.

“Investors in Harmony Overseas Equity Pool will gain broader exposure and better diversification through investments in emerging markets, which span more than 25 countries around the world,” said AGF Funds Inc. president Randy Ambrosie. “They will also benefit from a dedicated emerging markets manager whose specific expertise is analyzing, researching and investing in these markets.”

The emerging markets component will be managed by Principal Global Investors, which has more than 13 years experience and manages more than US$4.8 billion in emerging markets mandates (as at Dec. 31, 2007). Principal’s emerging markets portfolio has delivered consistent, strong long-term performance. The firm’s management team combines quantitative and fundamental bottom-up research to select investments in companies with improving business fundamentals, rising investor expectations and attractive valuations. Its emerging markets portfolio will be broadly diversified across countries and regions.

The target allocation for the emerging markets portion of Harmony Overseas Equity Pool is a maximum of 10%. Harris Associates and McKinley Capital will continue to manage the remainder of the Pool, which has more than $500 million in assets.

Principal Global Investors is a diversified institutional asset manager and wholly owned affiliate of Principal Financial Group, with more than US$240 billion in assets under management. Principal was selected to manage the emerging markets portion of Harmony Overseas Equity Pool by Wilshire Associates Inc., which provides its independent, third-party money management expertise to allocate assets, select managers and construct portfolios for AGF’s Harmony managed asset program.

Harmony provides investors with access to a managed asset program offering seven distinct portfolios and six investment pools managed by leading institutional fund managers.