AGF Management Ltd. announced Thursday that beginning in July it will enforce a short-term trading fee of up to 2% to active traders who redeem or switch funds they hold for less than 90 days.

AGF reported net redemptions of $229 million in June, of which it says approximately $103 million is attributed to active, large-volume traders. The majority of redemptions have come from AGF Canadian Money Market Fund.

AGF says it is making this move to further protect investors from higher costs associated with frequent trading activity between funds and to allow portfolio managers to generate optimum returns through longer-term investments.

The company has experienced a trend of decreasing monthly redemptions this year. As a percentage of assets under management, AGF’s gross monthly redemptions have gradually decreased from a high of 1.95% in January to 1.33% in June, excluding the $103 million in redemptions from active trading in June.