AGF Funds Inc. today unveiled the new AGF Global Dividend Fund, offering investors the combined benefits of global diversification and the potential for reduced performance volatility.

“Advisors told us they wanted a global dividend fund from AGF to build more global diversification and reduce volatility in their clients’ portfolios,” says AGF Funds president Rand Ambrosie. “AGF Global Dividend Fund complements our line-up of award-winning equity funds and builds on our demonstrated record of success in managing global equities.”

Investors are increasingly diversifying their portfolios with global funds, as demonstrated by the almost $1 billion in net sales that flowed into Canadian global dividend funds just in the first quarter of 2007.

“Our new AGF Global Dividend Fund is an attractive alternative for Canadians who are living longer and will need a balance of income and capital growth investments to sustain their lifestyles throughout their retirement,” explains Ambrosie.

Senior vp and portfolio manager Stephen Way will manage the fund, with support from AGF’s Global Equity Team. Way, with nearly 20 years of industry experience, also manages AGF Global Equity Class and AGF World Companies Fund, which are both top-quartile performers in their category.

Following Way’s proven conservative growth philosophy, AGF Global Dividend Fund will seek long-term total returns by investing primarily in dividend-paying equity securities around the world. The fund will be broadly diversified, without significant sector or geographic concentration.

“AGF Global Dividend Fund will appeal to equity investors seeking both capital growth and reduced performance volatility,” Way says. “Dividend-paying stocks provide regular income streams and a volatility cushion that can act as a buffer if the markets fall. The opportunity for dividend growth resulting from a company’s financial success should also help to generate long-term capital growth.”

AGF also announced the addition of Series V and T options on many of its funds, offering investors tax-deferral benefits and monthly cash payouts targeted at 5% and 8% annually, respectively.

“Income investors will appreciate the tax efficiency and stable cash flow of Series V and T,” Ambrosie says. “Both series will allow advisors to construct diversified portfolios tailored to their clients’ individual investment objectives and cash flow needs.”

Series V will be offered on AGF Global Dividend Fund, AGF Canadian Balanced Fund, AGF Canadian Large Cap Dividend Fund, AGF Canadian Real Value Balanced Fund, AGF Canadian Stock Fund, AGF International Value Fund, AGF World Balanced Fund, AGF Elements Balanced Portfolio and AGF Elements Growth Portfolio.

Series T will be offered on AGF Canadian Large Cap Dividend Fund, AGF Canadian Stock Fund, AGF International Value Fund, AGF World Balanced Fund and AGF Elements Growth Portfolio.

As a result of the creation of Series V on AGF Canadian Balanced Fund, AGF will remove the targeted distribution from this Fund. Investors in AGF Canadian Balanced Fund will be able to switch to the new Series V option with no tax consequences.