AGF Management Limited (AGF) today announced financial results for the year ended November 30, 2009, reporting net income of $97.7 million or $1.09 per share diluted, an increase in total assets under management (AUM) of 25.5%, significant gains in the institutional markets and improved fourth quarter results at AGF Trust. AGF also announced that it intends to increase the quarterly dividend on its Class A voting common and Class B non-voting shares from 25 cents per share to 26 cents per share, effective March 2010.

Fiscal 2009 net income of $97.7 million or $1.09 per share diluted compares with net income of $128.6 million, or $1.41 per share diluted in fiscal 2008. Excluding a $9.8 million reduction in income taxes related to substantively enacted tax rates, net income in fiscal 2009 was $87.9 million or $0.98 per share diluted. In fiscal 2008, excluding non-cash impairment charges, net of tax, of $37.7 million and a $19.5 million reduction in income taxes related to substantively enacted tax rates, the Company reported net income of $146.8 million or $1.61 per share diluted.

As a result of free cash flow from operations (defined as cash flow from operations before net changes in non-cash balances related to operations less selling commissions paid) of $151.6 million, the Company paid out cash dividends of $86.2 million and maintained its quarterly dividend during fiscal 2009 at $0.25 per share.

"Despite extraordinary instability that characterized financial markets in the early part of 2009, our results reflect our growth strategy at AGF. Our total AUM increased by 25.5% since the end of 2008 and we made significant in-roads in the institutional space winning new clients both domestically and internationally. I am also pleased with the results at AGF Trust, a profitable contributor to AGF, as we improved our capital position and reduced our balance sheet risk," said AGF Chairman and Chief Executive Officer Blake C. Goldring. "AGF is well positioned in 2010 as we leverage our world class investment management expertise across target markets in both the retail and institutional space."

Total AUM increased 25.5% to $44.6 billion at November 30, 2009 from $35.6 billion at November 30, 2008. The increase was due to market appreciation, as well as approximately $4.0 billion in net institutional sales. In addition, the level of mutual fund net redemptions declined to approximately half of the previous year's level. Mutual fund AUM increased 15.1% to $22.7 billion at the end of fiscal 2009, compared to $19.8 billion at the end of fiscal 2008. Institutional, strategic accounts and high-net-worth AUM increased 38.5% to $21.9 billion at November 30, 2009 from $15.8 billion at November 30, 2008.

Consolidated revenue declined 19.2% to $586.1 million in fiscal 2009 compared to $725.6 million in the prior year. Revenue in the Investment Management Operations segment declined 21.6% for the year ended November 30, 2009, corresponding to a 21.3% decline in average levels of assets under management (AUM) in fiscal 2009. The Trust Company Operations segment reported a 4.2% decrease in revenue in fiscal 2009 versus 2008 with average loan balances declining by 5.3% on a year-over-year basis.

Expenses for the year ended November 30, 2009 declined 11.0% to $366.6 million from the previous year. Expenses in the Investment Management Operations segment declined 13.3% mainly due to lower trailing commissions and investment advisory fees attributable to the decline in average AUM levels. Expenses at AGF Trust were relatively flat as higher provision for loan losses was offset by lower selling, general and administrative expenses.

EBITDA (defined as earnings before interest, taxes, depreciation and amortization, non-controlling interest, impairment of goodwill and customer contracts and impairment of asset available for sale) decreased 30.0% to $219.5 million in fiscal 2009 driven by declining revenues compared to $313.7 million in fiscal 2008. EBITDA margin was 37.5% in fiscal 2009 compared with 43.2% in fiscal 2008.

During the fourth quarter of 2009, the Company recorded net income of $45.5 million or $0.50 per share diluted compared to a net loss of $19.3 million or $0.21 loss per share diluted in the fourth quarter of 2008. Excluding a $9.8 million reduction in income taxes related to substantively enacted tax rates, net income in the fourth quarter 2009 was $35.7 million or $0.40 per share diluted For the fourth quarter of 2008, excluding the impairment charges, net of tax, of $37.7 million, net income was $18.4 million or $0.20 per share diluted.

Consolidated EBITDA increased 32.6% to $71.6 million in the fourth quarter of 2009 compared with $54.0 million in the fourth quarter of 2008 due to strong results at AGF Trust. EBITDA in the Investment Management Operations segment increased 7.1% to $59.2 million as the year-over-year increase in average mutual fund AUM led to higher revenue in the fourth quarter of 2009 compared to 2008. EBITDA at AGF Trust was $10.4 million compared to a loss of $3.8 million in the fourth quarter of 2008. The increase was primarily attributable to an 80.5% decline in the provision for loan losses expense to $4.0 million in the fourth quarter of 2009 compared to $20.5 million in the fourth quarter of 2008.

Fiscal 2009 Financial Statement and Notes

Fiscal 2009 Management Discussion and Analysis

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://events.startcast.com/events/233/B0040. 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 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 private clients, as well as AGF Trust GICs, loans and mortgages. With approximately $45.0 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, Public Relations & Public Affairs
416-865-4284
lucy.becker@AGF.com