AGF Management Limited (AGF) today announced solid financial results for the first quarter ended February 29, 2008, with strong revenue and net income growth. Revenue increased 9.8% and EBITDA increased 11.3% compared to the first quarter of 2007.

“Continued market volatility impacted sales in the first quarter as investors remained cautious,” said Blake C. Goldring, Chairman and Chief Executive Officer, AGF. “Despite this, our financial results remained strong, with revenue up 9.8% and income from continuing operations before taxes increasing by 15.8%. Enhancing our relationships and world-class investment management expertise are the cornerstone of our business platform, and we will continue to focus on these areas to realize the potential of our key growth initiatives.”

In the first quarter of fiscal 2008, consolidated revenue from continuing operations rose to $194.3 million compared with $177.0 million in the first quarter of the prior year, with both operating segments reporting year-over-year increases. Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $89.5 million for the three months ended February 29, 2008, compared with $80.4 million for the three months ended February 28, 2007. However, continued market volatility resulted in net redemptions of mutual funds for the quarter, with $221 million of net redemptions of long-term funds during the first quarter of fiscal 2008.

Income from continuing operations before taxes for the three months ended February 29, 2008, was up 15.8% to $56.5 million, compared with $48.8 million for the three months ended February 28, 2007. Net income from continuing operations for the three months ended February 29, 2008, was up 64.6% to $62.7 million or $0.70 per share diluted, compared with $38.1 million or $0.42 per share diluted for the three months ended February 28, 2007. Included in net income is a reduction in future income tax of $19.5 million related to the reduction in the federal income tax rate to 15% from 18.5% by January 1, 2012. Excluding the impact of this change, net income from continuing operations was up 13.4% to $43.2 million or $0.48 per share
diluted.

Total assets under management (AUM) decreased by 4.7% to $49.3 billion at the end of the first quarter of 2008 from $51.7 billion as at February 28, 2007. Over the same period, mutual fund assets declined by 3.8%, primarily as a result of market depreciation, however, average mutual fund assets increased 2.0% year over year. Institutional and high-net-worth client assets declined 5.9% because of market volatility as well as client rebalancing and redemptions, which were non-performance related. The AGF Trust Operations segment continued to grow significantly with total loan assets rising 47.3% year over year.

Q1 Financial Report 

Conference Call
AGF Management Limited (TSX: AGF.B) will release its financial results for the first quarter of fiscal 2008 on Wednesday, March 26, 2008 at approximately 8:00 a.m. ET.  AGF will hold a conference call and webcast to discuss these results at 11:00 a.m. ET. The discussion will feature remarks by Blake Goldring, Chairman and Chief Executive Officer, and Greg Henderson, Chief Financial Officer.  A question and answer period with investment analysts will follow.  The live audio webcast with supporting materials will be available in the Investor Relations section of AGF’s website at www.agf.com or by clicking on http://webcast.streamlogics.com/audience/index.asp?eventid=78485 .    Alternatively, the call can be accessed by dialing 1-888-825-9691 (toll-free in North America). Click here for the conference call and webcast presentation slides .

A complete archive of this discussion along with supporting materials will be available at the same webcast address as of 5 p.m. ET on March 26.

About AGF Management Limited
AGF Management Limited is one of Canada’s premier investment management companies with offices across Canada and subsidiaries around the world.  AGF’s products and services include a diversified family of more than 50 mutual funds, the evolutionary AGF Elements portfolios, the Harmony asset management program, AGF Asset Management Group services for institutional and high-net-worth clients, as well as AGF Trust GICs, loans and mortgages. With over $49 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:
Greg Henderson, CA
Senior Vice-President and Chief Financial Officer
AGF Management Ltd.
416-865-4156
greg.henderson@AGF.com