Press Releases

AGF Management Limited Reports First Quarter Financial Results

March 25, 2015 • Quarterly Reports/Dividends
  • Total AUM increased to $36.7 billion at February 28, 2015, from $36.1 billion at February 28, 2014
  • 51% of ranked AUM performed above median for the three-year period ended February 28, 2015

AGF Management Limited (AGF or the Company) today announced financial results for the first quarter ended February 28, 2015. Total assets under management (AUM) increased to $36.7 billion as at February 28, 2015, compared to $36.1 billion as at February 28, 2014. Total retail fund AUM remained stable at $20.0 billion as at February 28, 2015. The trend of lower retail redemption levels continued into the first quarter of 2015 as net redemptions were 18.6% lower than during the first quarter of 2014, decreasing from net redemptions of $0.6 billion for the three months ended February 28, 2014 to $0.5 billion in the same period in 2015. Institutional and sub-advisory AUM was $11.8 billion as at February 28, 2015, compared to $12.1 billion as at February 28, 2014. High-net-worth AUM increased to $4.6 billion, compared to $4.1 billion for the same period in 2014. AUM related to the alternative asset management platform increased to $0.3 billion.

“Our primary objective is to help our clients succeed and in doing so, create shareholder value,” said Kevin McCreadie, President and Chief Investment Officer, AGF Investments Inc. “Our investment performance is improving as is reflected by 51% of our ranked AUM for the three-year period now above median, a significant improvement from 22% a year ago. AGF has a number of attractive investment platforms that – along with a sustained focus on improving investment performance – will support growth in our business.”

InstarAGF Inc. (InstarAGF) announced the acquisition of the Billy Bishop Toronto City Airport passenger terminal by Nieuport Aviation Infrastructure Partners GP, a consortium of Canadian and international investors led by InstarAGF, during the first quarter of 2015. AGF has committed and invested $103.4 million related to this investment, which will be a seed asset for the essential infrastructure fund. The fund is expected to achieve its first closing with external investors in the first half of 2015, at which point the Company will receive a return of its capital in excess of its proportionate participation.

The Company participated in the Annual Brand Study conducted by Credo Consulting Inc. during the first quarter of 2015. The results of the survey showed significant improvement in AGF’s brand recognition and perception.

“We are pleased with the results of a recent industry survey of advisors which recognized the progress we have made to further help advisors and our clients succeed,” said Blake C. Goldring, Chairman and Chief Executive Officer, AGF. “We remain focused on our key priorities, including our advancement in the alternative asset management space. During the quarter, AGF continued to return value to shareholders in the form of dividends and its share buyback program.”

During the first quarter of 2015, revenue from continuing operations was $111.7 million, compared to $116.9 million for the three months ended February 28, 2014, largely due to lower average retail AUM levels. For the three months ended February 28, 2015, net income from continuing operations was $13.6 million compared to $17.1 million for the same quarter of 2014. Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations was $33.9 million, compared to $43.9 million in the first quarter of 2014. Diluted earnings per share (EPS) from continuing operations of $0.16 compared to $0.20 for the three months ended February 28, 2014.

Dividends paid, including dividends reinvested, on Class A Voting common shares and Class B Non-Voting shares were $23.0 million in the first quarter of 2015. Under its normal course issuer bid, AGF repurchased a total of 2,788,040 Class B Non-Voting shares for $21.7 million at an average price of $7.80. For the three months ended February 28, 2015, AGF declared an eight cent per share dividend on Class A Voting common shares and Class B Non-Voting shares, payable April 17, 2015 to shareholders on record as at April 9, 2015.

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 or at Alternatively, the call can be accessed toll-free in North America by dialing 1-800-708-4540 (Passcode #: 39212217). 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.

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

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 $36 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.

Caution Regarding Forward-Looking Statements

This Management’s Discussion and Analysis (MD&A) includes forward-looking statements about the Company, including its business operations, strategy and expected financial performance and condition. 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.’ In addition, any statement that may be made concerning future financial performance (including revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future action on our part, is also a forward-looking statement. Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations, business prospects, business performance and opportunities. While we consider these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risks, uncertainties and assumptions about our operations, economic factors and the financial services industry generally. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements made by us due to, but not limited to, important risk factors such as level of assets under our management, volume of sales and redemptions of our investment products, performance of our investment funds and of our investment managers and advisors, pipeline, 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 our ability to complete strategic transactions and integrate acquisitions. We caution 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. Other than specifically required by applicable laws, we are under no obligation (and expressly disclaim any such obligation) to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. For a more complete discussion of the risk factors that may impact actual results, please refer to the ‘Risk Factors and Management of Risk’ section of the 2014 Annual MD&A.


Media Contact

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

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