Press Releases

AGF Management Limited Reports First Quarter Financial Results

March 23, 2016 • Quarterly Reports/Dividends

46% of ranked AUM performed above median for the one-year period ended February 29, 2016 compared to 34% in the same period in 2015

AGF Management Limited ("AGF" or "the Company") today announced financial results for the first quarter ended February 29, 2016. The volatile global markets over the past 12 months have had an impact on AUM levels. Total assets under management (AUM) was $31.7 billion as at February 29, 2016, compared to $36.7 billion as at February 28, 2015. Total retail fund AUM was $16.9 billion as at February 29, 2016, compared to $20.0 billion as at February 28, 2015. The trend of lower retail redemption levels continued into the first quarter of 2016 as net redemptions were 36.5% lower than during the first quarter of 2015, decreasing to $0.3 billion from $0.5 billion. During the same period, mutual fund redemptions across the industry increased 18.6% when compared to the same time frame in 2015. Institutional and sub-advisory AUM was $10.4 billion as at February 29, 2016, compared to $11.8 billion as at February 28, 2015. Private client AUM was $4.2 billion, compared to $4.6 billion for the same period in 2015. AUM related to the alternative asset management platform remained stable at $0.3 billion.

On March 2, 2016, InstarAGF Inc. (InstarAGF) announced the successful first close of the InstarAGF Essential Infrastructure Fund (EIF) with $372.0 million in firm equity commitments and a targeted final close of $750.0 million. InstarAGF's receipt of new commitments resulted in AGF receiving net cash of $73.6 million, the majority of which represents a return of capital to bring the Company's invested capital in line with its proportionate share of total commitments offset by $9.6 million of additional capital call. InstarAGF expects to achieve the final close of the fund by the end of 2016.

"I am pleased with the first close of the InstarAGF Essential Infrastructure Fund. It reinforces our commitment to reinvesting in the business and represents a significant milestone for our alternatives platform," said Blake C. Goldring, Chairman and Chief Executive Officer, AGF Management Limited. "InstarAGF diversifies AGF's investment capabilities and solutions for institutional, private, and retail clients globally, and enhances our ability to deliver innovative strategies that offer investors downside risk protection and long-term capital growth."

On March 9, 2016, AGF announced plans to streamline its retail product line and provide greater focus on key strategies by merging a number of funds. In addition to those proposed mergers, AGF also lowered management fees on selected funds across the equity, fixed income, balanced and managed solutions lineup effective April 1, 2016.

"After a thorough review of our investment processes and risk parameters across all our mandates, we have narrowed our product lineup to help improve efficiencies while offering best-in-class and competitively priced products that meet the evolving needs of our clients," said Kevin McCreadie, President and Chief Investment Officer, AGF Investments Inc.

During the first quarter of 2016, income from continuing operations was $103.3 million, compared to $111.7 million for the three months ended February 28, 2015, largely due to lower average retail AUM levels. For the three months ended February 29, 2016, net income from continuing operations was $10.1 million compared to $13.6 million for the same quarter of 2015. Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations was $27.3 million, compared to $33.9 million in the first quarter of 2015. Diluted earnings per share (EPS) from continuing operations was $0.13 compared to $0.16 for the three months ended February 28, 2015.

Dividends paid, including dividends reinvested, on Class A Voting common shares and Class B Non-Voting shares were $6.4 million in the first quarter of 2016. Under its normal course issuer bid, AGF repurchased a total of 1,000,000 Class B Non-Voting shares for $5.1 million, at an average price of $5.10 per share. For the three months ended February 29, 2016, AGF declared an eight cent per share dividend on Class A Voting common shares and Class B Non-Voting shares, payable April 18, 2016 to shareholders on record as at April 8, 2016.


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 #: 42071955). 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 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, pooled funds and an alternative asset management platform. AGF also manages assets on behalf of institutional investors including pension plans, sovereign wealth funds, foundations and endowments as well as for private clients. With approximately $32 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.


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

Adrian Basaraba
Senior Vice-President, Finance

Adam Cohen
Director, Finance & Investor Relations


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 income, 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 2015 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

Our website uses cookies to help you get the best experience. Please Accept or click Edit to control your settings.