AGF Funds Inc. made two administrative changes to the AGF Elements program, which now holds more than $650 million in assets. In particular, AGF has made four amendments to the list of Elements Advantage benchmarks and has changed the timing of quarterly rebalancing to mid-month. These changes require amendments to the simplified prospectus and annual information form.

Two AGF Elements benchmarks were eliminated by their respective firms on Dec. 31, 2005 and are being replaced with new indices. For the AGF U.S. risk managed class, the S&P/Citigroup growth total return index has replaced the S&P Barra growth total return Iindex. For the AGF global resources class, the FTSE world resources total return index has been replaced by 60% MSCI world energy total return index and 40% MSCI world materials total return index.

Two other benchmarks price only at month-end. These benchmarks have been changed to meet the preferred daily pricing methodology for the Elements Advantage and made retroactive to the inception of AGF Elements so that all unitholders, regardless of purchase date, receive the same Advantage benchmark composition.

For the AGF Canadian Small Cap Fund, the S&P/TSX small cap total return index has replaced the NB small cap total return index. For the AGF Canadian Resources Fund Ltd., 60% S&P/TSX capped energy total return index and 40% S&P/TSX capped materials total return index have replaced the Morningstar/TSX resources total return index.

Beginning next quarter, rebalancing of AGF Elements portfolios, based on asset allocation recommendations by its consultant Wilshire Associates Inc., will be executed on or about the 15th day following calendar quarter end. This change ensures that client reporting of asset mixes in underlying funds remains unaffected by an Elements portfolio’s movement out of smaller mandates.

Launched in late November 2005, AGF Elements was built 100% on advisor feedback to create a solution that puts the needs of their clients first. AGF Elements’ five portfolios are designed to offer advisors flexibility, while giving investors access to a diversified group of portfolio options with a low investment minimum. The fund-of-fund features the Elements Advantage, an unprecedented commitment to quality of money management — if a portfolio does not match or outperform its customized benchmark over a three-year average annualized period, investors will receive up to 90 bps (0.90%) in units.