AGF Management Limited (AGF) today announced financial results for the second quarter ended May 31, 2010 with net income of $27.5 million, up 59.9% or $10.3 million from net income of $17.2 million reported in the second quarter of 2009. The increase was the result of higher Investment Management Operations revenue primarily related to improvements in global markets and a decline in Trust Company Operations provision for loan losses expense. Excluding one-time accounting charges related to Smith and Williamson Holdings Limited (S&WHL), in which we hold a 30.5% equity investment, net income for the three months ended May 31, 2010 was $31.5 million.

Earnings per share in the second quarter of 2010, on a fully diluted basis, were $0.30 compared with $0.19 in the second quarter of 2009. Excluding the one-time accounting charges related to S&WHL, earnings per share were $0.35 in the second quarter of 2010, on a fully diluted basis.

Total assets under management (AUM) increased 14.6% to $42.9 billion at May 31, 2010 from $37.4 billion at May 31, 2009 as a result of market appreciation as well as the addition of new institutional mandates over the past twelve months. Mutual fund assets increased 2.2% to $21.4 billion at the end of May 2010 compared to $20.9 billion the prior year. Institutional and high-net-worth client assets increased 30.3% year-over-year to $21.5 billion from $16.5 billion.

"Our AUM and profitability increased year-over-year with strong interest from institutional clients and improvements in market and economic conditions," said Chairman and CEO Blake C. Goldring. "We are moving forward strategically with our growth plans and in the second quarter, launched two new retail funds, a new institutional mandate and a new residential mortgage lending product. These enhancements across all our business lines position AGF well to capitalize on diverse asset-gathering opportunities."

During this quarter, total consolidated revenue increased to $153.8 million compared with $143.5 million in the second quarter of last year. EBITDA totalled $62.6 million for the three months ended May 31, 2010, an increase of 27.8% compared with $49.0 million for the three months ended May 31, 2009. Excluding the one-time accounting charges related to S&WHL, EBITDA for the three months ended May 31, 2010 was $68.1 million. For the second quarter of 2010, EBITDA margins improved to 40.7% from 34.1% in the same period a year earlier.

AGF Trust continued to be a meaningful contributor to AGF's overall profitability. While loan assets declined 17.6% year-over-year to $3.4 billion at May 31, 2010, profitability improved with a 67.1% decline in the provision for loan losses contributing to a 112.2% increase in EBITDA to $10.4 million. AGF Trust is repositioning for future growth with product enhancements and new product development. In the second quarter of 2010, AGF Trust launched a prime residential mortgage product in the advisor channel in Ontario with plans to roll out the product in the rest of Canada over the remainder of the year.

2010 Q2 Financial Report

Conference Call
AGF will host a conference call to review its earnings results today at 11:00 a.m. ET. The live audio webcast with supporting materials will be available in the Investor Relations section of AGF's website at www.AGF.com or at http://www.bellwebcasting.ca/audience/index.asp?eventid=53084963. Alternatively, the call can be accessed by dialling 1-866-300-4047 (toll-free in North America). A complete archive of this discussion along with supporting materials will be available at the same webcast address within 24 hours of the end of the conference call.

About AGF Management Limited
AGF Management Limited is one of Canada's premier investment solutions firms with offices across Canada and subsidiaries around the world. AGF's products and services include a diversified family of award-winning mutual funds, AGF Elements portfolios, the Harmony asset management program, services for institutional and private clients, as well as AGF Trust GICs, loans and mortgages. With approximately $43 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.

AGF Management Limited shareholders and analysts, please contact:
Robert J. Bogart, CPA
Senior Vice-President and Chief Financial Officer
416-865-4264
bob.bogart@AGF.com

Deirdre Neary
Director, Investor Relations
416-815-6268
deirdre.neary@AGF.com

Media, please contact: 
Lucy Becker
Vice-President, Public Relations & Public Affairs
416-865-4284
lucy.becker@AGF.com