AGF has launched a comprehensive worldwide search to identify best-in-class investment managers for a selected number of AGF global value portfolios, AGF president and chief executive officer Blake Goldring announced today.

The move comes as a response to the unexpected announcement of Brandes Investment Partners, sub-advisor on four AGF global value portfolios, to break their exclusive relationship with AGF.

“We were surprised by this business decision because of the strength of our long-standing partnership, which extends beyond mere fund performance,” said Goldring. “As a result of that decision, today we have taken swift action to reinforce our commitment to act in the best interests of our broad network of investment advisors and Canadian investors.”

Brandes will continue to sub-advise on AGF International Value fund, AGF RSP International Value Fund, AGF International Stock Class and AGF Emerging Markets Value Fund at least through the next 90 days. As part of this, AGF has been given the option to keep Brandes on as sub-advisor through the end of the 2002 calendar year.

As sole distributor of Brandes mutual fund products in Canada, AGF introduced the U.S.-based value managers to Canadian investment advisors in 1994.

“We helped build the Brandes business in Canada by combining the strong AGF brand and our solid advisor relationships with their focused investment style” said Goldring. “AGF’s deep roots and 45-year tradition in the Canadian market have provided a solid and trusted platform for growth.”

As a result of this success, AGF assets sub-advised by Brandes grew from approximately $300 million in 1994 to more than $10 billion today.

“Despite the sudden nature of this announcement, it proves timely given the rapid growth in assets and the burgeoning size of these portfolios,” said Goldring. “While we have always honoured our contract with Brandes, we welcome this opportunity to diversify our money management expertise.”

Goldring wished Brandes well in their attempt to establish a retail presence in the Canadian mutual fund market.