AGF Investments Inc. is promoting members of its portfolio team and reducing its fund lineup as part of a continuing effort to streamline the company's investment options.
Six AGF funds will be merged with other existing offerings, pending regulatory approvals. The changes are likely to occur by May, 2014.
"We're always assessing our product line from the standpoint of continuing relevance to the client base, and making sure we're forward-looking," said Gordon Forrester, head of retail at AGF. "It's an ongoing process."
AGF wants to reduce duplications and overlap in its lineup to make it easier for investors and advisers to understand and choose AGF funds. These changes might also make the company more efficient.
Independent asset managers and mutual fund companies face a competitive landscape as aggressive banks, insurers and other wealth managers all vie for the investment dollars of Canadians.
Striking the right balance between launching innovative investment products and consolidating existing offerings is a continuing process for AGF, which is also planning to add some new offerings to its lineup next year, according Blake Goldring, the company's CEO, on a recent call with analysts.
The changes made Tuesday include management reassignment for funds formerly run by Acuity Investment Management Inc., which AGF acquired in 2011. Managers from AGF and its subsidiary Highstreet Asset Management Inc. will take over managing these funds.
Three former Acuity fund managers, Hugh McCauley, Warren Fenton and David Pirie, left the company as part of the reorganization.
AGF's $325-million deal for Acuity added scale to the business at a time when many competitors were taking on competitors to bolster their businesses and increase their ability to compete. The Acuity deal came shortly after Bank of Nova Scotia bought DundeeWealth Inc. and CI Financial Corp. acquired Hartford Investments, for example.
AGF also promoted two investment managers as part of the announcement.
Portfolio manger Peter Frost becomes senior vice-president. He advises on several Canadian balanced and equity funds. Brian Madden, also a portfolio manager, has moved up to be a vice-president. He currently co-manages AGF's Canadian Asset Allocation Fund. Both appointments are pending regulatory approval.