Toronto-based AGF Investments Inc. is adding four income-generating mutual funds to its corporate-class product lineup and extending its high net-worth (HNW) pricing for fee-based funds to certain products within its “elements” lineup.
The new funds, which are classified under AGF All World Tax Advantage Group Ltd. (AWTAG), include AGF Elements Yield Portfolio Class, AGF Fixed Income Plus Class, AGF Global Dividend Class and AGF Total Return Bond Class. They are available in traditional, fee-based and tier-priced options.
The firm’s announcement, released on Thursday, acknowledges that investors with corporate-class mutual funds will soon lose the tax-deferral benefit traditionally associated with these products. This follows the federal government’s budget announcement in March that switching between corporate classes after September 2016 will be considered a deemed disposition. However, other tax-efficient features and pooling benefits continue to make these products valuable, according to the announcement.
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“AWTAG combines approximately 23 distinct classes of mutual funds and managed portfolios under one corporate umbrella,” says Kevin McCreadie, president and chief investment officer with AGF in the statement. “AGF still believes AWTAG gives investors the freedom to make investment decisions — rather than tax decisions — for non-registered investments.”
AGF is also adding a Series W, its HNW pricing model for fee-based funds, to the following products: AGF Elements Yield Portfolio, AGF Elements Conservative Portfolio Class, AGF Elements Balanced Portfolio Class, AGF Elements Growth Portfolio Class and AGF Elements Global Portfolio Class.
This change is already in effect.
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