AGF Funds Inc. has introduced AGF Elements, a series of fund-of-fund portfolios built by U.S.-based pension consultant and investment management firm Wilshire Associates. Elements is composed of five portfolios: conservative (60% fixed-income, 40% equities), balanced (40%/60%), growth (20%/80%), global (100% equities) and yield (50% fixed-income/50% income-producing equities). Investors will receive up to 0.9% in new units if the portfolio does not match or outperform its benchmark over a three-year annualized period, the company says. “Investors believe that if the firm doesn’t do what it says it’s going to do, they shouldn’t get the same payment,” says Larry Herscu, senior vice president of product management and marketing in Toronto. “That formed the basis for the Elements concept.” Commissions are 0%-6% for front-end sales, 5% for deferred sales and 2.5% for low-load sales. Redemption fees begin at 5.5% in Year 1 and decline to zero after Year 7 for the DSC schedule, or begin at 3% in Year 1 and end at zero after Year 3 with the low-load schedule. Trailing commissions on the first four portfolios are 1.25% for front-end sales, or 0.5% for the first seven years and 1.25% thereafter for units sold on a DSC basis. Low-load trailing commissions are 0.5% for the first three years and 1.25% thereafter. For AGF Elements Yield Portfolio, trailing commissions are 0.75% for front-end sales, 0.25% for the first seven years and 0.75% thereafter for DSC sales; for low-load sales, they are 0.25% for the first three years and 0.75% thereafter. Management fees for MF-series units are 2%, except for the Global portfolio (2.1%) and the Yield portfolio (1.7%). Minimum investment is $5,000.
AGF launches Elements
- By: Lara Hertel
- January 4, 2006 October 30, 2019
- 11:22