AGF Files Statement of Claim

Lawsuit launched against U.S. investment and recruitment firms and AGF ex employees for unlawful "lift-out" of investment managers

TORONTO, Aug. 4, 2012 /CNW/ - AGF Management Limited ("AGF") and AGF Investments Inc. ("AGFI") yesterday issued a Statement of Claim in the Ontario Superior Court of Justice alleging that a U.S. investment company, its executive recruitment firm, and certain individuals including ex-fund manager Patricia Perez-Coutts orchestrated an attempted unlawful "lift-out" of an entire team of experienced, professional investment managers in breach of their legal obligations.

The Claim alleges that the attempted unlawful lift-out was planned so as to inflict damage to AGF, while at the same time inappropriately rewarding certain ex employees, including Patricia Perez-Coutts to work with them to affect the improper lift out.

"In our view, this action is about a breach of legal obligations involving ethically wrong behaviour by this U.S. investment company with full participation by individuals including Patricia Perez-Coutts, our ex fund manager," said AGF Chairman and Chief Executive Officer Blake C. Goldring. "We have a duty to act, and to protect Canadian investors from this type of interference.  Integrity is the most important part of our business."

"This behaviour harms the entire industry and has serious implications on how investors view the financial services sector," said Winthrop H. Smith Jr., Lead Director of AGF Management Limited. "We are compelled to pursue our claim accordingly."

About AGF Management Limited

AGF Management Limited is one of Canada's premier independent investment management firms with offices across Canada and subsidiaries around the world. AGF's products include a diversified family of award-winning mutual funds, mutual fund wrap programs and pooled funds. AGF also manages assets on behalf of institutional investors including pension plans, foundations and endowments as well as for private clients. With over $41 billion in total assets under management, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

Caution Regarding Forward-Looking Statements

This release includes forward-looking statements. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes' or negative versions thereof and similar expressions, or future or conditional verbs such as 'may,' 'will,' 'should,' 'would' and 'could.' Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations, economic factors, business prospects, business performance and opportunities. While the company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements due to, but not limited to, important risk factors such as level of assets under management, volume of sales and redemptions of investment products, performance of investment funds and of investment managers and advisors, competitive fee levels for investment management products and administration, and competitive dealer compensation levels, and investment management operations, as well as interest and foreign-exchange rates, taxation, changes in government regulations, unexpected judicial or regulatory proceedings, and the company's ability to complete strategic transactions and integrate acquisitions. The company cautions that the foregoing list is not exhaustive. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Forward-looking statements are given only as at the date of this release and other than specifically required by applicable laws, the company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. Additional risks and uncertainties can be found in our MD&A for the fiscal year ended November 30, 2011 under the headings "Caution Regarding Forward-Looking Statements" and "Risk Factors and Management of Risk" and in our other filings with Canadian securities regulatory authorities.

SOURCE: AGF

Peter Block
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