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AGF Management Limited Reports Third Quarter Financial Results

September 28, 2016 • Quarterly Reports/Dividends

• Total assets under management increased 2.9% compared to prior year • Adjusted EPS from continuing operations increased to $0.13

AGF Management Limited (AGF or the Company) today announced financial results for the third quarter ended August 31, 2016. Total assets under management (AUM) increased to $34.2 billion, compared to $33.7 billion as at May 31, 2016 and $33.3 billion as at August 31, 2015. Market growth combined with the trend of lower retail redemptions and AUM growth in our alternative asset management platform contributed to improved AUM levels. Total retail fund AUM was $17.8 billion as at August 31, 2016, compared to $17.5 billion as at May 31, 2016 and $18.2 billion as at August 31, 2015. Institutional and sub-advisory AUM was $11.0 billion as at August 31, 2016, compared to $11.1 billion as at May 31, 2016 and $10.5 billion as at August 31, 2015. Private client AUM was $4.8 billion, compared to $4.6 billion as at May 31, 2016 and $4.4 billion as at
August 31, 2015.

“We remain focused on delivering strong long-term investment performance and exceptional service to our clients while improving sales and increasing overall AUM,” said Blake C. Goldring, Chairman and Chief Executive Officer, AGF Management Limited.

For the three-year period ended August 31, 2016, 47% of ranked AUM performed above median, compared with 48% for the three-year period ended August 31, 2015.

“Focus on client needs will be a key factor as we shape our business for the future,” said Kevin McCreadie, President and Chief Investment Officer, AGF Investments Inc. “We strive to deliver strong long-term capital growth and downside protection in order to deliver on our client’s expectations for more consistent and repeatable outcomes.”

Income from continuing operations for the third quarter of 2016 adjusted for a one-time charge of $2.1 million related to the Company’s share of a tax levy recorded by Smith and Williamson Holdings Limited (S&WHL) was $111.5 million. Income from continuing operations for the third quarter of 2015 adjusted for a one-time special distribution of $5.7 million was $110.1 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations was $25.3 million in the third quarter of 2016, compared to $31.8 million in the third quarter of 2015.

Diluted earnings per share (EPS) from continuing operations was $0.10 for the three months ended August 31, 2016, compared to $0.14 for the three months ended August 31, 2015. Adjusted diluted EPS from continuing operations was $0.13 for the three months ended August 31, 2016. Adjusted diluted EPS from continuing operations for the three months ended August 31, 2015 was $0.12. In addition to the special distribution, the results for the three months ended August 31, 2015 included one-time restructuring costs of $4.4 million. During the nine months August 31, 2016, we also recognized $1.5 million of one-time fund custody and accounting transition costs. Adjusted diluted EPS from continuing operations was $0.39 for the nine months ended August 31, 2016. Adjusted diluted EPS from continuing operations for the nine month period ended August 31, 2015 was $0.46.

For the three months ended August 31, 2016, AGF declared an eight cent per share dividend on Class A Voting common shares and Class B Non-Voting shares, payable October 18, 2016 to shareholders on record as at October 11, 2016.


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 www.agf.com or at http://edge.media-server.com/m/p/jb74jdjx. Alternatively, the call can be accessed toll-free in North America by dialing 1-800-708-4540 (Passcode #: 43406461).

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, 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 $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:

Adrian Basaraba
Senior Vice-President and Chief Financial Officer
416-865-4203, adrian.basaraba@agf.com

Adam Cohen
Director, Finance and Investor Relations
416-865-4228, adam.cohen@agf.com

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 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

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