AGF Management Limited (AGF) today announced financial results for the second quarter ended May 31, 2008. Global stock market volatility continued into the second quarter, resulting in a modest 1.3% decline in revenue and a 1.6% decline in earnings before interest, taxes, depreciation and amortization (EBITDA) over the corresponding period in 2007, excluding the $8.0 million securitization gain recognized in the second quarter of 2007. In addition, AGF announced plans to repurchase up to $60 million of AGF Class B non-voting shares over the next several months. To facilitate the repurchase, AGF has secured an additional bank credit facility with a three-year repayment term.

“Although investors remained cautious within the current market environment, at AGF we believe that our strong long-term business strategy positions us well for future success. Our business fundamentals remain solid and we will continue to focus on enhancing relationships to realize our key growth initiatives,” said AGF Chairman and CEO Blake C. Goldring.  “Despite the challenging markets faced by the industry, our assets have held up relatively well and our trust operations have continued to experience significant growth with total loan assets rising 44.2% year-over-year at the end of May.”

Mr. Goldring also stated, “In light of the current valuation of our stock and industry comparables, we believe that AGF remains a superior investment that provides value for our shareholders and we plan on repurchasing up to $60 million in AGF stock through our share repurchase program.”

In the second quarter of fiscal 2008, total consolidated revenue from continuing operations decreased to $194.3 million compared with $204.9 million in the second quarter of the prior year. EBITDA from continuing operations totalled $88.6 million for the three months ended May 31, 2008, compared with $98.0 million for the three months ended May 31, 2007. Excluding the $8.0 million securitization gain recorded in the second quarter of 2007, revenue declined $2.6 million and EBITDA decreased $1.4 million while EBITDA margins remained relatively stable. Continued market volatility in the quarter resulted in $241 million of net redemptions of long-term mutual funds.

Excluding the $8.0 million securitization gain, net income from continuing operations for the three months ended May 31, 2008 increased 7.1% and earnings per share diluted increased $0.04 or 8.9%, compared with the three months ended May 31, 2007. Including the 2007 securitization gain, net income from continuing operations for the quarter was down 10.4% to $44.0 million or $0.49 per share diluted, compared with $49.1 million or $0.54 per share diluted for the same period last year.

Total assets under management (AUM) decreased 7.2% to $51.8 billion at May 31, 2008 from $55.8 billion as at May 31, 2007. Over the same period, mutual fund assets declined by 6.5% as a result of market depreciation and lower levels of gross sales. Average mutual fund assets for the quarter decreased 5.6% over the second quarter of 2007 and 1.9% year-over-year. Institutional and high-net-worth client assets declined 8.0% year-over-year primarily as a result of client rebalancing and redemptions, which were non-performance related. Month-to-date net redemptions of long-term mutual funds as of the close of business on June 23, 2008 totalled $294.3 million, of which approximately 68% was related to a client rebalancing. 

Q2 Financial Report 

Conference Call
AGF Management Limited (TSX: AGF.B) will release its financial results for the second quarter of fiscal 2008 on Wednesday, June 25, 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=99660 .    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 June 25.

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 approximately $52 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
416-865-4156
greg.henderson@AGF.com

Media, please contact: 
Lucy Becker
Vice-President, Corporate Communications
416-865-4284
lucy.becker@AGF.com