AGF Funds Inc. and CIBC launched CIBC AGF China and Emerging Markets Enhanced Protection Deposit Notes, Series 1, the latest in a series of principal-protected deposit notes.

These notes will provide investors with exposure to markets in China, Asia, Eastern Europe, Central and South America, combined with 100% principal protection, if held to maturity.

In addition, a “lock-in” feature allows investors to lock in a portion of the returns on the funds as the value of the portfolio exceeds certain thresholds.

“Principal-protected deposit notes are proving to be a real hit with Canadian investors looking for growth and security,” said AGF Funds Inc. president Randy Ambrosie. “This series combines principal protection with the growth potential of our award-winning AGF Emerging Markets Fund and our fast-growing AGF China Focus Class.”

AGF Emerging Markets Fund invests primarily in shares of companies located or active in Asia, Eastern Europe, Central and South America.

AGF China Focus Class invests primarily in stocks and bonds of companies which are either based in China or which benefit from its economic development and growth.

The seven-year notes are available for purchase until March 28, 2008 and will mature April 2, 2015.

In 2007, AGF and CIBC launched six other series of deposit notes linked to different AGF Funds.