AGF Management Ltd.’s trust unit has temporarily discontinued its 100% no-margin loan product, the company confirmed on Monday.

The product provides investors with 100% financing loans for investment purposes, with no margin calls.

The discontinuation is a result of lower demand for products and a difficult economic environment, according to AGF’s vice-president of communications, Lucy Becker.

“We are being prudent by scaling back on some of our initiatives,” she said.

“We will continue to closely monitor the situation and if warranted, we will consider making further adjustments and/or enhancements to our product line-up.”

The company continues to offer investment loans, and it will continue offering RSP loans through certain firms with which it has established strategic partnerships, Becker said.

She added that AGF still offers its “Up to 3-for-1 No Margin” loan, which lets investors borrow up to three times the amount they put forward in pledged assets without margin calls.

The product discontinuation follows news last week that AGF’s trust unit laid off 10% of staff as a result of the challenging economic conditions.

IE