AGF Announces Management Fee Reductions and Proposed Investment Objective Changes

TORONTO, Feb. 17, 2021 (GLOBE NEWSWIRE) — AGF Investments Inc. (AGFI) today announced management fee reductions for AGF Global Real Assets Class and AGF Global Real Asset Fund and proposed investment objective changes for AGF Diversified Income Class and AGF Diversified Income Fund.
These changes reflect AGFI’s commitment to continually review its line-up to ensure clients have access to products that are relevant, competitive and responsive to market trends.Management Fee ReductionsEffective as of March 1, 2021, AGFI will reduce the management fees for certain series of AGF Global Real Assets Class and AGF Global Real Assets Fund as follows:Proposed Investment Objective ChangesSubject to securityholder approval, AGFI is proposing to change the investment objectives of AGF Diversified Income Class and AGF Diversified Income Fund.At the special meetings of securityholders to be held on April 14, 2021, subject to extension or adjournment thereof, securityholders of each of AGF Diversified Income Class and AGF Diversified Income Fund will be asked to approve the following proposed changes in investment objectives:If approved, the proposed investment objectives are expected to be implemented on or about April 30, 2021. Notwithstanding the receipt of securityholder approval, AGFI may postpone implementing the investment objective change for a fund until a later date (which shall be no later than December 31, 2021) or may elect not to proceed with the change at all, if it considers such decision to be in the best interests of the securityholders of that fund.If approved, upon adoption of the proposed investment objective changes (or as of the date indicated below), additional changes will be made to AGF Diversified Income Class and AGF Diversified Income Fund, as applicable, including the following:Name Change: AGF Diversified Income Class will change its name to “AGF Global Sustainable Balanced Class” and AGF Diversified Income Fund will change its name to “AGF Global Sustainable Balanced Fund”.
 
Management Fee Reduction:  Effective on or about May 1, 2021, the management fee for the MF Series of each fund will be reduced from 2.35% to 1.90%. The management fees for all other series of the funds will remain the same.
 
Change in Distribution Frequency: The distribution frequency for AGF Diversified Income Fund will change from monthly to annually. The last monthly distribution for AGF Diversified Income Fund is expected to be on or about April 30, 2021. There will be no dividend policy change for AGF Diversified Income Class. 
 
Risk Rating Changes: As of February 17, 2021, the risk rating of the funds is anticipated to change from “low” to “low to medium” upon adoption of the proposed investment objective.Additional information regarding the proposed change in investment objectives, including a discussion of certain Canadian federal income tax considerations, will be provided in the funds’ management information circular. In advance of the special meetings, a notice-and-access document will be mailed to securityholders of record as at February 12, 2021. The notice-and-access document will describe the various ways in which securityholders can obtain a copy of the management information circular.About AGF Management Limited
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