AGF Funds Inc. is rebalancing the investment portfolios in Harmony, its managed asset program. Wilshire Associates Inc. — the independent and third party consultant appointed in November 2005 to oversee Harmony’s due diligence process — has updated the portfolios’ asset allocations based on its 2006 strategic asset allocation assumptions. The changes take place effective Wednesday.

Wilshire’s key changes to the Harmony portfolios include reduced exposure to small-cap equities, increased U.S. equity exposure in more conservative portfolios, decreased U.S. equity exposure in more aggressive portfolios and increased overseas equity in more aggressive portfolios. For a complete list of updated allocations for the Harmony portfolios, visit www.agf.com.

“Our review and changes demonstrate a commitment to the enhanced due diligence process behind this successful tailored investment program,” said David Hall, managing director, Wilshire Associates. “Using our distinctive reverse optimization approach, we concluded that the current asset mix needed to be updated to keep Harmony portfolios in line with investors’ objectives over the long-term.”

Wilshire will evaluate the strategic asset allocation each year to determine if the current mix needs to be rebalanced to ensure that portfolios remain consistent with investor’s long-term investment objectives. Wilshire’s mandate with Harmony also includes portfolio construction, manager search and selection, and performance monitoring.

Harmony tailors investment portfolios to an individual’s specific goals and uses a diversified investment approach that is flexible, customized and continuously monitored. Investment advisors can align their clients with one of the six model portfolios comprised of investment pools across five asset classes. Alternatively, advisors may customize, using individual pools to meet each client’s needs.