Press Releases

AGF Management Limited Reports Improved Net Flows

January 28, 2015 • Quarterly Reports/Dividends
  • Total assets under management increased to $35.1 billion at November 30, 2014, from $34.4 billion at November 30, 2013
  • Adjusted diluted EPS from continuing operations increased 28% to $0.68 for fiscal 2014, from $0.53 in fiscal 2013
  • Announces cornerstone investment on January 27 to accelerate development of alternatives platform

AGF Management Limited ("AGF" or "the Company") today announced its operating and financial results for the fiscal year and quarter ended November 30, 2014.

2014 Operational Highlights

In June 2014, AGF welcomed Kevin McCreadie as President and Chief Investment Officer. Kevin provides direction and leadership to AGF's investment management teams and leads the firm's global institutional business.

Institutional and sub-advisory assets under management (AUM) improved 4.3% to $11.3 billion at November 30, 2014 from $10.9 billion at November 30, 2013, reflecting improved flows from our strategic partners.

Retail flows for the fiscal year improved considerably relative to 2013 with net redemptions down 18.5% for the twelve-month period ended November 30, 2014, compared with the prior twelve months.  

AGF's retail focus in 2014 was on product innovation, enhanced pricing flexibility and operational efficiencies aimed at improving the ease of doing business for AGF's valued clients.

To address investor needs for alternative fixed-income solutions in the current low interest rate environment, the Company launched AGF Global Convertible Bond Fund in Q4. To provide more pricing options for investors, AGF launched lower F-class pricing and a new Series W for high-net-worth fee-based clients.

"Our concerted efforts to improve investment performance, execute on our strategic objectives, increase AUM and strengthen partner and client relationships are driving improvements across AGF," said Kevin McCreadie, President and Chief Investment Officer, AGF Investments Inc. "We took decisive action in 2014 to position the Company for growth, while accelerating product development. This will help our clients succeed and create shareholder value."

Developing AGF's alternative asset management platform

During the first quarter of 2014, AGF committed $50.0 million to Stream Asset Financial LP (Stream), a midstream oil and gas infrastructure fund with equity commitments of approximately $210.0 million in total.  As at November 30, 2014, AGF had invested $16.6 million in Stream, with $33.4 million remaining committed capital to be invested in the Stream fund. 

On January 27, 2015, InstarAGF Asset Management Inc. (InstarAGF), announced that Nieuport Aviation Infrastructure Partners GP, a consortium of Canadian and international infrastructure investors including InstarAGF, had acquired the passenger terminal at Billy Bishop Toronto City Airport from Porter Aviation Holdings Inc. InstarAGF contributed approximately $105 million of capital to acquire the terminal, which will be a cornerstone investment in InstarAGF's Essential Infrastructure Fund. The Fund is expected to achieve its first close in the first half of 2015.

"InstarAGF's investment in the terminal – a premier infrastructure asset – is consistent with AGF's strategy to deploy capital to initiatives that will deliver growing and sustainable shareholder value," said Blake C. Goldring, Chairman and Chief Executive Officer, AGF Management Ltd. "Our alternatives business expands and diversifies AGF's investment capabilities and bolsters our product offering for our clients globally. We see significant potential for growth in this business."

"Momentum is growing across the company. Improved flows in our retail business, growing AUM in our institutional and sub-advisory business and milestone investments in our alternatives business are laying the foundation for sustainable growth and expansion."

2014 Financial Results Summary

AUM increased to $35.1 billion at November 30, 2014, compared to $34.4 billion at November 30, 2013.

Consolidated revenue from continuing operations was $464.5 million, compared to $484.5 million in the same period in 2013, reflecting a change in the mix of AUM towards lower fee-paying assets.

Earnings before interest, taxes, depreciation and amortization (EBITDA) was $154.9 million, compared to $163.6 million in 2013, reflecting lower revenue offset by a reduction in expenses. Net income from continuing operations increased to $59.1 million, compared to $22.4 million in 2013.

Diluted earnings per share (EPS) from continuing operations for the year ended November 30, 2014 increased to $0.68 from $0.25 in 2013. Adjusted diluted EPS from continuing operations increased 28.3% to $0.68 for fiscal 2014, from $0.53 for the same period in 2013.

Dividends paid to shareholders in 2014 remained unchanged from 2013 at $1.08 per share. In fiscal 2014, AGF repurchased a total of 1,762,200 shares for $22.1 million. In total, AGF returned $112.8 million of free cash flow from operations to shareholders through a combination of cash dividends and share buybacks.

In December 2014, AGF announced a change in its capital allocation strategy for 2015 that will result in retained capital being deployed towards initiatives with the potential to create greater shareholder value. As part of this strategy, the Company announced its intention to adjust the quarterly dividend to $0.08 per share on both the Class B Non-Voting shares and the Class A Voting common shares for Q1-2015.  This change in capital allocation allows greater flexibility to execute the Company's growth strategy and be active in its share buyback program. The Company intends to renew its share buyback program when the current program expires in February 2015. Since the announcement on December 9, 2014, the Company has repurchased 2.2 million shares.

Fourth Quarter Overview

During the fourth quarter of 2014, net income from continuing operations increased 77.5%  to $12.6 million, compared to $7.1 million during the same period in 2013, reflecting lower amortization expenses. Revenue for the fourth quarter ended November 30, 2014 was $111.7 million, compared to $117.4 million in the same period in 2013.

EBITDA increased 2.4% to $34.4 million, compared to $33.6 million in Q4-2013, reflecting lower selling, general and administrative expenses.

Diluted EPS from continuing operations improved to $0.14 in the three months ended November 30, 2014, compared to $0.08 for the same period in 2013.

Conference Call

AGF will host a conference call to review its earnings results today at 11 a.m. ET. The live audio webcast with supporting materials will be available in the Investor Relations section of AGF’s website at or at Alternatively, the call can be accessed toll-free in North America by dialing 1-800-708-4540 (Passcode #: 38774736).

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 independent investment management firms with offices across Canada and subsidiaries around the world. AGF's products include a diversified family of mutual funds, mutual fund wrap programs and pooled funds. AGF also manages assets on behalf of institutional investors including pension plans, foundations and endowments as well as for private clients. With over $34 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, Analysts and Media, Please Contact:

Robert J. Bogart
Executive Vice-President and Chief Financial Officer

Adrian Basaraba
Senior Vice-President, Finance

Caution Regarding Forward-Looking Statements

This release includes forward-looking statements. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes' or negative versions thereof and similar expressions, or future or conditional verbs such as 'may,' 'will,' 'should,' 'would' and 'could.' Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations, economic factors, business prospects, business performance and opportunities. While the Company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements due to, but not limited to, important risk factors such as level of assets under management, volume of sales and redemptions of investment products, performance of investment funds and of investment managers and advisors, competitive fee levels for investment management products and administration, and competitive dealer compensation levels and cost efficiency in our investment management operations, as well as interest and foreign-exchange rates, taxation, changes in government regulations, unexpected judicial or regulatory proceedings, and the Company's ability to complete strategic transactions and integrate acquisitions. The Company cautions that the foregoing list is not exhaustive. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Forward-looking statements are given only as at the date of this release and other than specifically required by applicable laws, the Company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. Additional risks and uncertainties can be found in our MD&A for the fiscal year ended November 30, 2014 under the headings "Caution Regarding Forward-Looking Statements" and "Risk Factors and Management of Risk" and in our other filings with Canadian securities regulatory authorities.


Media Contact

Amanda Marchment
Director, Corporate Communications
Phone: 416-865-4160

Karrie Van Belle
SVP, Head of Marketing and Communications
Phone: 416-865-4320

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