AGF Global Balanced High Income Fund will be terminated on or about July 6, AGF Funds Inc. said Friday.

Effective May 1, units of AGF Global Balanced High Income Fund will no longer be available for purchase.

AGF says the decision to terminate the fund was driven by a combination of the small number of unitholders, relatively low assets and the costs associated with maintaining such a small fund.

Prior to the termination, unitholders of the fund will have the option to switch their investment to any of AGF’s family of mutual funds or to redeem their units.

“Any unitholders who hold AGF Global Balanced High Income Fund in an AGF registered account and who remain in the fund on July 3, will have their holdings redeemed and re-invested into the Front-End (FE) mutual fund series of AGF Canadian Money Market Fund,” AGF says.

“For those unitholders who hold AGF Global Balanced High Income Fund in a non-registered account or a non-AGF registered account, including all self-directed accounts under a nominee or intermediary, AGF will liquidate any remaining holdings of the Fund at fair market value on or about July 6, 2009.”

A final distribution of any income and capital gains, if any, will be made on July 3, and the remaining net assets will be distributed to unitholders on July 6.

Unitholders will not be required to pay any redemption fees or sales charges, AGF says.

IE