AGF entered the century and millennium with the fifth consecutive year of record revenue, cash flow from operations and net earnings. This is an extraordinary achievement when viewed against the backdrop of volatile markets, an increasingly competitive environment, and integration costs incurred in connection with the acquisitions of Global Strategy Holdings Inc. and Magna Vista Capital Management Inc.
We exceeded our targets for mutual fund assets under management, which grew 52.4 per cent to $28.90 billion, and market share of the Canadian mutual fund industry, which increased to 6.98 per cent from 5.20 per cent in 1999.
By continuing to implement strong financial controls and enhanced expense accountability, we reduced selling, general and administrative costs for mutual fund operations. Expressed as a percentage of average assets under management, these costs were reduced by one basis point in 2000. Effective cost controls also benefited most investors in AGF funds with lower management expense ratios on 90 per cent of mutual fund assets.
Two Key Acquisitions
The highlight of the year was AGF’s acquisition of 100 per cent of the outstanding shares of Global Strategy Holdings Inc., as well as our acquisition of Magna Vista Capital Management Inc. These were important moves that provided AGF with new opportunities to benefit from economies of scale and to streamline operations.
Along with $5.6 billion in assets under management, Global Strategy offered us complementary fund products, a fund management relationship with Rothschild Asset Management, enhanced distribution capabilities and access to a larger employee talent pool.
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