AGF Funds Inc. plans to make changes to certain commissions paid in respect of AGF Canadian Money Market Fund as a way of helping to maintain a positive yield for unitholders amid the current low-yield environment, the company said Friday.

Effective June 15, AGF will no longer pay up-front commissions for new purchases into the Deferred Sales Charge (DSC) or Low Load (LL) options of AGF Canadian Money Market Fund.

AGF previously announced to dealers that it had reduced the management and trailer fees on the MF, D and F Series of the fund. AGF will continue to waive management fees and absorb expenses as may be required to ensure the NAV remains at $10.

As a result of Friday’s announcement, investors who first purchase their DSC or LL units of the fund on or after June 15, will not pay the deferred sales charges when they sell those units. In effect, no DSC (seven-year) or LL (three-year) schedule will be created.

Once an investor switches out of the fund and into the DSC or LL option of another AGF fund, “a commission will be paid to the dealer at that time and a DSC or LL schedule will begin,” AGF says.

“Deferred sales charges may be applicable to subsequent redemptions,” it adds.

Investors who switch into a DSC or LL option of AGF Canadian Money Market Fund from another AGF fund with the same sales charge option will continue to pay any applicable deferred sales charge if they subsequently redeem the units, AGF says.

The DSC or LL schedule will continue to run from the purchase date of the original AGF fund.

IE