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AGF Management Limited Reports Third Quarter Financial Results

September 30, 2015 • Quarterly Reports/Dividends

Gross retail fund sales up 12.0% compared to the third quarter of 2014

AGF Management Limited (AGF or the Company) today announced financial and operating results for the third quarter ended August 31, 2015, noting improvements in gross retail fund sales of 12.0%, compared to the same period in 2014.

During the third quarter of 2015, revenue from continuing operations was $115.8 million, compared to $116.9 million for the three months ended August 31, 2014. Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $31.8 million, compared to $38.5 million in the third quarter of 2014. For the three months ended August 31, 2015, net income from continuing operations was $11.9 million compared to $14.8 million for the three months ended August 31, 2014. Diluted earnings per share (EPS) from continuing operations were $0.14, compared to $0.17 for the three months ended August 31, 2014.

“Despite the dramatic market volatility, we executed on our core priorities throughout the third quarter and saw consistent performance across key asset classes with our managers adding value in Canadian equity, global and emerging markets funds,” said Blake C. Goldring, Chairman and Chief Executive Officer, AGF. “Our capital position remains strong and we are committed to investing in the growth of our business.”

For the one-year period ended August 31, 2015, 45% of our AUM performed above median, compared to 47% for the one-year period May 31, 2015 and 46% for the one-year period at August 31, 2014. For the three-year period ended August 31, 2015, 48% of AUM performed above median, compared to 45% for the three-year period May 31, 2015 and a significant improvement from 25% for the three-year period ended August 31, 2014.

“We remain focused on building our core competencies in investment management,” said Kevin McCreadie, President and Chief Investment Officer. ”We are committed to delivering long-term capital growth and downside risk protection to create a more consistent, repeatable outcome for our clients.”


Total assets under management (AUM) were $33.3 billion as at August 31, 2015, compared to $37.0 billion as at August 31, 2014. Total retail fund AUM was $18.2 billion as at August 31, 2015, compared to $19.9 billion in the third quarter of 2014. Institutional and sub-advisory AUM were $10.5 billion as at August 31, 2015, compared to $12.4 billion as at August 31, 2014. High-net-worth AUM remained stable at $4.4 billion, compared to $4.4 billion for the corresponding period in 2014. Alternative asset management platform AUM was $0.3 billion as at August 31, 2015.

Dividends paid, including dividends reinvested, on Class A Voting common shares and Class B Non-Voting shares were $6.5 million in the third quarter of 2015. Under the normal course issuer bid, 2,120,924 Class B Non-Voting shares were repurchased during the quarter for a total consideration of $13.4 million at an average price of $6.32 per share. For the three months ended August 31, 2015, AGF declared an eight cent per share dividend on Class A Voting common shares and Class B Non-Voting shares, payable October 19, 2015 to shareholders on record as at October 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 www.agf.com or at http://edge.media-server.com/m/p/fr37iyke. Alternatively, the call can be accessed toll-free in North America by dialing 1-800-708-4540 (Passcode #: 40749554). 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
416-865-4264, bob.bogart@agf.com

Adrian Basaraba
Senior Vice-President, Finance
416-865-4203, adrian.basaraba@agf.com

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 $33 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

Media Contact

Amanda Marchment
Director, Corporate Communications
Phone: 416-865-4160
Email: amanda.marchment@agf.com

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