AGF trims line-up and F-series fees; CIO to be hired soon

Rudy Luukko 15 April, 2014 | 12:00AM
Facebook Twitter LinkedIn

This spring is a season of change for AGF Investments Inc. on several fronts. The company is trimming its mutual-fund line-up by seven funds, has reduced management fees for selected fee-based purchase options, and is getting close to appointing a new chief investment officer.

"We're down to a short list of candidates" for the CIO role, Gordon Forrester, AGF's executive vice-president, marketing and product, and head of retail, told Morningstar. "We're pleased with the quality of candidates that have shown interest."

Forrester said AGF expects to announce a new investment team head by the end of the second quarter, at the latest. The successful candidate will replace Martin Hubbes, who had served as CIO since June 2005. AGF announced in December that it would replace Hubbes in that role.

Meanwhile, AGF has lowered its management fees for a dozen of its F-series funds, which are available for investors who employ fee-based advisors.

The reductions mostly apply to core asset categories but also to several more specialized mandates including high-yield bonds and emerging-markets bonds. Savings will range from 10 to 55 basis points. (See table.) The reductions took effect on April 1. Management fees are the largest portion of the management-expense ratios for the funds.

F-series fund New fee (%) Change (bps)
 AGF American Growth Class 1.00% -50
 AGF European Equity Class 1.00% -50
 AGF Global Equity Class 1.00% -50
 AGF Global Equity 1.00% -25
 AGF Global Select 1.00% -35
 AGF International Stock Class 0.90% -60
 AGF Canadian Asset Allocation 0.90% -35
 AGF Monthly High Income 0.90% -10
 AGF Emerging Markets Bond 0.90% -10
 AGF Fixed Income Plus 0.70% -55
 AGF High Yield Bond 0.90% -10
 AGF Total Return Bond 0.90% -10
Source: AGF Investments Inc.

In another development, AGF is proceeding with seven fund mergers that have received investor approval. The mergers are scheduled to take place on May 23. (See table.)

Six of the terminating funds were formerly part of the Acuity family of funds, which AGF acquired in 2011. AGF's decision to seek approval to terminate these funds coincided with its announcement in November that three of the six members of the Acuity investment team were leaving.

The other fund being terminated is AGF Global Government Bond. Investors endorsed AGF's proposal to merge this fund into AGF Global Aggregate Bond. The continuing fund has a broader mandate that is "better aligned with investors' needs," Forrester said.

Merging fund Continuing fund
 AGF All Cap 30 Canadian Equity  AGF Canadian Stock
 AGF Conservative Asset Allocation  AGF Canadian Asset Allocation
 AGF High Income  AGF Monthly High Income
 AGF High Income Class  AGF Diversified Income Class
 AGF Social Values Equity  AGF Global Equity
 AGF Social Values Balanced  AGF Traditional Income
 AGF Global Government Bond  AGF Global Aggregate Bond
Source: AGF Investments Inc.

Facebook Twitter LinkedIn

About Author

Rudy Luukko

Rudy Luukko  Rudy Luukko is a freelance writer who contributes to on topics involving fund industry trends and regulatory issues. He retired in May 2018 from his position as editor, investment and personal finance, at Morningstar Canada, where he had worked since 2004. He has also worked as an editor and writer for various general, specialty and institutional media, and he has co-authored courses for the Canadian Securities Institute. Follow Rudy on Twitter: @RudyLuukko.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy       Disclosures        Accessibility