AGF Funds Inc. is making a series of product and fund management changes designed to meet the evolving needs of more risk-averse investors, the company said Monday.

The changes follow AGF’s recent announcement of a number of fund mergers aimed at simplifying and improving AGF’s fund line-up.

“At AGF we continue to look for opportunities to refine our product offering to align it with investor preferences,” says Randy Ambrosie, president, AGF Funds Inc. “These changes better reflect and respond to current market realities.”

The changes outlined below are effective April 20.

The investment strategy of AGF Canadian Conservative Income Fund will change and so will its name –to AGF Canadian Conservative Inflation Managed Income Fund. At least half of the fund’s assets will be invested in aggregate floating rate and inflation-linked bonds to help manage inflation when interest rates rise. AGF Funds Inc. continues as the portfolio manager of the fund.

The investment strategy of AGF World Balanced Fund will move from 90% equities and 10% bonds to a more conservative 70%-30% weighting. The strategic mix of 70-30 will remain static. AGF Funds Inc. continues as the portfolio manager of the fund, with AGF International Advisors Co. Ltd. (AGFIA) as portfolio advisor. The fixed-income component of the fund will be invested primarily in investment grade government and corporate bonds, but may also be invested in emerging market debt and high yield bonds.

The portfolio manager will change for AGF U.S. Risk Managed Class and AGF U.S. Risk Managed Fund. Highstreet Asset Management Inc., an affiliate of AGF, which uses a core equity strategy, will replace INTECH Investment Management LLC, a growth equity strategy manager. While AGF continues to support INTECH as a manager, the firm’s U.S. equity line up was heavily weighted to growth strategy managers and it was felt that a core equity strategy manager with traditionally low volatility would help round out its line up of U.S. equity funds.

Nomura Asset Management will no longer be a portfolio advisor for AGF China Focus Class, AGF Japan Class or AGF Japan Fund. AGF Asset Management Asia Ltd. has been appointed as portfolio advisor on AGF China Focus Class. AGF Asset Management Asia is already a portfolio advisor on AGF Asian Growth Class, a specialty fund providing exposure in Asia, excluding Japan. AGF Funds Inc. continues as the portfolio manager of all three funds; AGFIA remains portfolio advisor for all three.

As well, AGF is capping the AGF Elements Advantage feature on its Elements Products to new purchases effective June 22. Eligible units purchased prior to June 22 will be grandfathered.

In addition, the closing of AGF World Opportunities Fund, originally scheduled to take place on April 20, has been postponed until further notice.

These announcements follow last week’s approval by securityholders for a number of fund mergers and other fund-related changes. Regulatory approval on the fund mergers is pending.

IE