ING Investment Management, the €350bn ($455bn) Dutch-owned funds house, has lost a chunk of Canadian business with the decision by one of the country's largest managers to withdraw a sub-advisory mandate for a flagship fund.

AGF Funds, which has C$49bn (€32bn) in assets, will take the management of its €570m dividend income fund in-house, to be run on a temporary basis by Martin Hubbes, chief investment officer.