(March 27 – 17:30 ET) – AGF Funds Inc. is proposing to merge 12 funds subject to regulatory and unitholder approval.

“As part of our integration of Global Strategy, these changes are intended to streamline our product offerings by merging funds with similar objectives and strategies,” said Blake Goldring, President and CEO, AGF Management Ltd.

“These mergers will increase operating efficiencies and will benefit advisors and securityholders by eliminating duplication in our fund lineup,” he added.

Securityholders will be asked to approve the mergers of the following funds:

  1. AGF Global Government Bond Fund into Global Strategy World Bond Fund;
  2. AGF RSP Global Bond Fund into Global Strategy World Bond RSP Fund;
  3. AGF U.S. Income Fund into AGF U.S. Short-Term High Yield Fund;
  4. Global Strategy Europe Plus RSP Fund into AGF RSP European Growth Fund;
  5. Global Strategy Growth & Income Fund and Global Strategy Canadian Companies Fund into AGF Canadian Stock Fund;
  6. Global Strategy Income Plus Fund into AGF Canadian Balanced Fund;
  7. Global Strategy Japan Plus RSP Fund into AGF RSP Japan Fund;
  8. Global Strategy Money Market Fund into AGF Canadian Money Market Fund; and
  9. Global Strategy World Balanced Fund into AGF World Balanced Fund.

In addition, AGF says securityholders of Global Strategy Europe Plus Fund and Global Strategy U.S. Equity Fund will be asked to approve the wind-up of these funds. At this time, an offer will be made to securityholders to exchange their units for shares of AGF European Growth Class and AGF U.S. Value Class, a new class of AGF International Group Limited, respectively.

Securityholders of AGF Canadian Stock Fund will also be asked to approve a change in investment objectives to provide greater flexibility by investing, according to market conditions, in medium and large-sized Canadian companies.

Securityholders of AGF U.S. Short-Term High Yield Fund will be asked to approve a change in investment objectives to permit debt securities with longer maturities and higher investment grades. The name of the fund will be changed to AGF Total Return Bond Fund to reflect its revised investment objectives.

Finally, securityholders of AGF Canadian Money Market Fund will be asked to approve the standardization of the fund’s declaration of trust with those of other AGF funds.

AGF says notice of the special meetings and management information circular will be mailed in April to securityholders of record on March 29, 2001.