Toronto-based AGF Investments Inc. has added four corporate-class mutual funds to its AGF All World Tax Advantage Group Ltd. (AWTAG) lineup – despite the upcoming elimination of the tax-deferral benefit of such funds. AGF Elements Yield Portfolio Class Fund invests primarily in a mix of income, bond and equity funds that may include income trusts, royalty trusts and real estate investment trusts. AGF Fixed Income Plus Class Fund’s objective is to provide unitholders with income through investments in fixed-income securities, including foreign securities. AGF Global Dividend Class Fund invests in dividend-paying equities from all over the world. AGF Total Return Bond Class Fund invests primarily in debt securities of global governments and other issuers with the objective of providing unitholders with interest income and capital appreciation. AGF launched these funds after Canada’s federal government eliminated the tax-deferral benefits of corporate-class funds in its 2016 budget. After September 2016, any assets that are transferred between corporate-class mutual funds will trigger a deemed disposition, which will be taxed at fair market value. AGF, however, believes these funds still are useful to investors, as they offer other tax efficiencies and pooling benefits. “AWTAG combines approximately 23 distinct classes of mutual funds and managed portfolios under one corporate umbrella,” said Kevin McCreadie, president and chief investment officer with AGF in a statement. “AGF still believes AWTAG gives investors the freedom to make investment decisions – rather than tax decisions – for non-registered investments.”
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