Despite on-going market turmoil, AGF turned in a solid year. This performance was a result of rigorous cost control and our business diversification strategy. We also generated impressive cash flow for the year ended November 30, 2002.

We continue to see cash flow from operations as a key measure of corporate performance. While cash flow in fiscal 2002 declined to $266.4 million, or $2.90 per share diluted, compared with $284.4 million or $3.10 per share diluted last year, this decline was entirely accounted for by a $19.7-million increase in current taxes in 2002 related to the lower level of selling commissions paid.

Consolidated revenue was $654.1 million, up from $640.0 million last year, an increase of 2.2 per cent.

Consolidated net income was $119.8 million or $1.30 per share diluted for the year, compared with $163.8 million or $1.79 per share diluted in 2001.

Consolidated net income in fiscal 2001 and 2002 was significantly affected by the adoption of two accounting policies. Excluding the impact of these adoptions, AGF's adjusted consolidated net income in 2002 was $80.1 million compared with $84.6 million in 2001, a decrease of 5.3 per cent.

Strong financial controls and enhanced accountability reduced operational costs attributable to mutual fund operations as a percentage of average assets under management by 0.2 basis points, despite a decline of 4.6 per cent in average assets under management.

AGF reinvested approximately $189 million into building subsidiaries, making strategic investments and reinvigorating critical areas of the company.