AGF Completes Acquisition of Acuity

Boosts AGF's total AUM to nearly $52 billion

TORONTO, Feb. 1 /CNW/ - AGF Management Limited today announced it has successfully completed its acquisition of 100% of Acuity Funds Ltd. and Acuity Investment Management Inc. The agreement positions AGF as one of the largest independent investment management firms in Canada, increasing its total assets under management (AUM) to nearly $52 billion.

As a result of the acquisition, AGF's retail mutual fund and pooled fund AUM increase from about $23 billion to approximately $27 billion. At the same time, AGF's institutional and high net worth AUM of about $21 billion increase to approximately $25 billion when combined with Acuity.

The acquisition was initially announced on November 30, 2010. The purchase price of $339 million was adjusted based on AUM levels at closing.  A portion of the purchase price will be deferred and is subject to an AUM-based adjustment over three years from closing.

"The deal demonstrates AGF's commitment to diversification while effectively leveraging our core focus as an investment management firm," said AGF Chairman and CEO Blake C. Goldring.  "This acquisition gives us greater scale as we continue to provide excellence in money management to meet the needs of a diverse range of clients in both the retail and institutional markets."

He went on to add that "this acquisition expands and strengthens our presence in Canada and internationally. The addition of Acuity enhances our investment management capabilities and builds out our product line up allowing us to offer investors an even broader range of investment styles and solutions for every market cycle."

The Acuity portfolio management team remains unchanged using its high quality proven investment style, philosophy and process. Acuity's investment management team will also be shareholders in AGF with long-term incentives to focus on delivering performance for investors.

"As we worked towards this closing, AGF reinforced our shared values of independence, integrity and innovation," said Acuity's former President and Chief Executive Officer Ian O. Ihnatowycz. "We look forward to contributing to the continued growth and success of AGF and remain committed to delivering value for all stakeholders."   

Mr. Ihnatowycz will now join AGF's board of directors.

About AGF Management Limited

AGF Management Limited is one of Canada's premier investment solutions firms with offices across Canada and subsidiaries around the world. AGF's products and services include a diversified family of award-winning mutual funds, AGF Elements portfolios, the Harmony asset management program, services for institutional and private clients, as well as AGF Trust GICs, loans and mortgages. With nearly $52 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.

About Acuity

Established in 1990 by Ian O. Ihnatowycz, Acuity manages assets on behalf of retail and institutional investors including pension plans, foundations and endowments. Acuity offers a full range of mutual funds, pooled funds, closed end funds, and wraps (Alpha), as well as separately managed accounts. Acuity has frequently been recognized for outstanding performance across all its investment strategies, where the firm has built an enviable long-term track record.

SOURCE AGF

For further information:

Media, please contact AGF Public Relations and Public Affairs:

Lucy Becker
Vice-President
416-865-4284, lucy.becker@agf.com

Karen Archer
Media Relations Manager
416-865-4295, karen.archer@agf.com

AGF Management Limited shareholders and analysts, please contact:

Robert J. Bogart, CPA
Executive Vice-President and Chief Financial Officer
416-865-4264, bob.bogart@agf.com

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AGF

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