AGF Funds Inc. says it will follow through on its original proposal to reduce expenses on RSP clone funds, no matter what the outcome of today’s budget vote.

In the event that this budget does not pass, but similar proposals are introduced in the next tabled budget, AGF will honour its commitment to reduce expenses retroactive to the first budget announcement on February 23, 2005.

Investors who hold AGF RSP clone funds on the date the amendments to the Income Tax Act eliminating the foreign content rules become law will benefit from the reduction.

“We will not restart the clock when and if a new budget is introduced that contains provisions to eliminate the foreign content rules,” said Randy Ambrosie, executive vp, sales and marketing, AGF Funds Inc., in a release. “At AGF, it is our intention to ensure that our clients are able to benefit from these changes from the date they were first introduced, despite any shorter-term issues in passing legislation.”

AGF will also continue to automatically rebalance portfolios to maintain current foreign content limits, unless directed by the investor or until any new changes prescribed by law are passed.

For investors who want to discontinue automatic rebalancing, AGF will accrue and remit any penalties as mandated by the Canada Revenue Agency until any proposed changes become law.