AGF Funds Inc. today announced it will launch AGF Elements, a collection of five diversified portfolios, backed by the promise to distribute additional units if the portfolios fail to match the performance of their benchmarks.

If a portfolio does not match or outperform its customized benchmark over a three-year average annualized period, AGF will give investors up to 90 basis point (0.90%) in the form of new units.

AGF has also entered a new partnership with Wilshire Associates Inc., a leader in institutional oversight and customized investment solutions, to provide rigorous and independent due diligence to maximize returns and reduce risk. Wilshire has been retained to construct portfolios, conduct quarterly reviews and make recommendations for rebalancing and dynamic asset allocation. Founded in 1972, Wilshire created the Dow Jones Wilshire 5000 Index, the broadest measure of the U.S. Equity market, and partners with some of the world’s largest pension plans and asset managers.

“Our commitment to performance demonstrates to investors that we will put our money where our mouth is if we do not meet or exceed the portfolios’ benchmarks,” says Randy Ambrosie, executive vp, AGF Funds Inc. “We have also responded to the needs of investors and advisors by designing a solution that addresses their concerns about independence and objectivity.”

AGF Elements is expected to be available in November upon receipt of the final prospectus by the securities regulators.

In a single purchase, AGF Elements allows advisors to provide clients with one of five diversified fund-of-funds portfolios that invest directly in underlying AGF mutual funds. The composition ranges from yield to balanced to equity, featuring Canadian, U.S. and global core asset classes complemented by select niche asset classes. AGF says the portfolios will take advantage of a dynamic asset allocation process to benefit from market opportunities and stable long- term returns.