AGF Management Limited (AGF) today announced financial results for the second quarter ended May 31, 2009 with net income of $17.2 million, up $5.0 million from net income reported in the first quarter ended February 28, 2009. Net income was down from $44.0 million in the same period in 2008 as a result of declines in Investment Management Operations revenue primarily related to declines in global markets and an increase in Trust Company Operations provision for loan losses. This was partly offset by reductions in Investment Management Operations expenses and lower income tax and amortization expenses.

Earnings per share in the second quarter of 2009, on a fully diluted basis, were $0.19 compared with $0.14 in the first quarter of 2009 and $0.49 in the second quarter of last year.

Although the global economy still faces strong challenges which will continue to impact the industry, the second quarter did show signs of improvement over the first quarter of 2009 with AGF reporting a 14.7% increase in assets under management (AUM), a 4.0% increase in revenue, and a 14.5% increase in earnings before interest, taxes, depreciation and amortization (EBITDA). Year-over-year results, however, show that the economy has yet to normalize as evidenced by second quarter numbers that show a 27.7% decline in AUM, a 26.1% decline in revenue and a 44.7% decrease in EBITDA compared with the same period a year earlier.

"The second quarter saw an improvement in global markets with higher indices contributing to our increased AUM levels and improved profitability compared to the first quarter," said Chairman and CEO Blake C. Goldring. "While encouraged by these trends, we remain committed to strengthening the business by rationalizing costs, improving our future operating capabilities and focusing on risk management to ensure we remain well positioned for future long-term growth."

In the second quarter, the 2009 Canadian Lipper Awards honoured AGF with nine recognitions including two coveted group awards. AGF was awarded the Best Overall Fund Family and the Best Mixed Asset Fund Family for having the best overall risk-adjusted performance, relative to its peers in both categories. AGF Canadian Balanced Fund was a triple winner recognized for having the best one-, three- and five-year returns. Four other AGF funds were also recognized for performance.

During this quarter, total consolidated revenue decreased to $143.5 million compared with $194.3 million in the second quarter of the prior year. EBITDA totalled $49.0 million for the three months ended May 31, 2009, compared with $88.6 million for the three months ended May 31, 2008. For the second quarter of 2009, EBITDA margins declined to 34.1% from 45.6% in the same period a year earlier.

Total AUM decreased 27.7% to $37.4 billion at May 31, 2009 from $51.8 billion as at May 31, 2008. Over the same period, mutual fund assets declined by 27.0% primarily as a result of market depreciation combined with net redemptions. However, the level of net redemptions has shown improvement on a year-over-year basis. Institutional and high-net-worth client assets declined 28.6% year-over-year primarily as a result of market depreciation.

Also in the quarter, in keeping with our stated strategy to slow loan growth and suspend new originations of lower margin lending products, our Trust Company Operations loan assets declined 5.3% over May 31, 2008 to $4.1 billion as at May 31, 2009. AGF Trust remained focused on credit and collections activities in the second quarter of 2009 to mitigate potential future loan losses.

Q2 Financial Report

Conference Call
AGF Management Limited (TSX: AGF.B) will release its financial results for the second quarter of fiscal 2009 on Wednesday, June 24, 2009 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://events.startcast.com/events/233/B0036/ .    Alternatively, the call can be accessed by dialing 1-866-300-4047 (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 24.

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 award-winning mutual funds, AGF Elements portfolios, the Harmony asset management program, services for institutional and high-net-worth clients, as well as AGF Trust GICs, loans and mortgages. With approximately $37.4 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

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

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