AGF to buy ING’s mutual funds

(March 30, 2005) AGF Management has announced an agreement to purchase the mutual fund assets of ING Investment Management. Financial terms were not released.

AGF will acquire 14 ING funds with approximately $240 million in assets. Thirteen of those funds will be merged into similar AGF products. For example, the ING Canadian Balanced Fund will be folded into the AGF Canadian Balanced Fund and the ING Canadian Equity Fund will be merged into the AGF Canadian Stock Fund. In addition, the ING Canadian Dividend Income Fund will be renamed the AGF Dividend Income Fund.

“This is an important acquisition that creates the opportunity for AGF to build stronger distribution and sub-advisory relationships with ING,” said AGF president Blake Goldring in a statement. “It also allows ING unitholders and supporters access to the breadth and depth of AGF’s extensive mutual fund product lineup.”

“The transaction will provide our unitholders and their advisors access to the benefits offered by a large diversified mutual fund company like AGF,” added ING Investment Management senior vice president John Lockbaum. “As product breadth, investment style diversification and wholesaling support are taking more and more importance among investors and advisors, the transaction was a logical decision in light of the quality of their commitment of resources into these areas.”

The deal will also allow ING to focus more on the distribution of third-party investment products to its clients, Lockbaum added.

The acquisition, which is still subject to regulatory and unitholder approval, is expected to close in July.

ING also announced today that it will terminate five international funds in July. The funds are no longer accepting new deposits, effective immediately.

(03/30/05)

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