AGF Funds Inc. announced today that AGF Global High Income Fund will be terminated on Dec. 31.

Effective today, units of AGF Global High Income Fund are no longer available for purchase.

The decision to terminate the fund was made due to the small number of unit holders, relatively low assets and the associated costs of maintaining such a small fund, AGF says.

Prior to the termination, unit holders of the fund will have the option to switch their investment to any of AGF’s family of more than 50 mutual funds or to redeem their units. Any remaining assets on the termination date will be redeemed and re-invested in units of AGF Canadian Money Market Fund or AGF U.S. Dollar Money Market Account, depending on the currency denomination of the original purchase.

Unit holders will not be required to pay any redemption fees or sales charges, AGF says.

As part of the fund’s investment objective to provide investors with a tax efficient stream of monthly distributions, the fund entered into a forward contract with a Canadian chartered bank under which it sold forward the Canadian equity securities held by the fund in return for the total return of an investment in securities of AGF Global High Income Pool.

AGF says the fund will promptly settle the forward contract and invest its assets in cash equivalents pending the termination of the fund.

IE