AGF Management Limited Reports First Quarter 2017 Financial Results

  • AUM increased 10.7% with growth in all lines of business
  • Positive mutual fund net sales recorded in the month of February

TORONTO, March 29, 2017 /CNW/ - AGF Management Limited (AGF or the Company) today announced financial results for the first quarter ended February 28, 2017.

Total assets under management (AUM) increased 10.7% to $35.1 billion, compared to $31.7 billion as at February 29, 2016. AUM increased across all lines of business, including retail, private client, institutional and subadvisory, and the Company's alternative asset management platform.

During the three months ended February 28, 2017, retail fund net redemptions improved 61.9% to $119.0 million compared to net redemptions of $312.0 million for the three months ended February 29, 2016, reflecting the Company's continued focus on investment performance and customer service excellence. In the month of February 2017, mutual fund net sales were $150.8 million compared to mutual fund net redemptions of $69.5 million in the same month last year.

On January 30, 2017, the Company entered the Canadian exchange-traded fund (ETF) marketplace with the launch of seven ETFs. Managed through the Company's quantitative solutions platform known as AGFiQ Asset Management (AGFiQ), these ETFs are designed to balance risk while providing investors with the opportunity for growth. 

"We are seeing the results of the strategic plan we put in place three years ago," said Blake C. Goldring, Chairman and Chief Executive Officer, AGF Management Limited. "AGF is well-positioned to deliver the consistent investment performance our clients expect of us in this period of market volatility, as well to embrace the continuing market shifts driven by competitive pressures and regulatory evolution."

Income from continuing operations for the three months ended February 28, 2017 was $107.2 million compared to $103.3 million for the three months ended February 29, 2016. EBITDA from continuing operations for the three months ended was $25.7 million, compared to $27.3 million for the same period in 2016.

"We are encouraged by the improved operating results, strong cash flow and growth in assets under management across all of our businesses," said Adrian Basaraba, Senior Vice President and Chief Financial Officer, AGF Management Limited. "We remain focused on maintaining a strong balance sheet, controlling costs and improving efficiencies with the goal of delivering value to our shareholders."

Diluted earnings per share (EPS) from continuing operations for the three months ended February 28, 2017 was $0.11 and included a $0.01 non-cash charge related to the derecognition of certain customer contracts. Diluted EPS for the three months ended February 29, 2016 was $0.13.

For the three months ended February 28, 2017, AGF declared an eight cent per share dividend on Class A Voting common shares and Class B Non-Voting shares, payable April 18, 2017 to shareholders on record as at April 10, 2017.





















(from continuing operations)

Three months ended




February 28,



November 30,



February 29,


(in millions of Canadian dollars, except per share data)


2017



2016 1



2016












Income


107.2



104.8



103.3


Net Income attributable to equity owners of the Company


9.2



14.6



10.2












EBITDA 2


25.7



30.7



27.3


Adjusted EBITDA 2


25.7



25.5



27.3












Diluted earnings per share attributable to











equity owners of the Company


0.11



0.18



0.13












Adjusted diluted earnings per share attributable to











equity owners of the Company 2


0.11



0.13



0.13












Free Cash Flow 2


10.4



21.2



11.1


Dividends per share


0.08



0.08



0.08


Long-term debt


198.3



188.2



268.9












1

Includes $5.2 million of one-time items related to a reversal of a provision from prior years related to Harmonized Sales Tax and fund-related items.

2

EBITDA (earnings before interest, taxes, depreciation and amortization), adjusted EBITDA, adjusted diluted earnings per share and Free Cash Flow are not standardized measures prescribed by IFRS. The Company utilizes non-IFRS measures to assess our overall performance and facilitate a comparison of quarterly and full-year results from period to period. They allow us to assess our investment management business without the impact of non-operational items. These non-IFRS measures may not be comparable with similar measures presented by other companies. These non-IFRS measures and reconciliations to IFRS, where necessary, are included in the Management's Discussion and Analysis available at www.agf.com.

 




































Three months ended




February 28,



November 30,



August 31,




May 31,



February 29,


(in millions of Canadian dollars)


2017



2016 1



2016




2016



2016



















Retail fund Assets Under Management (AUM)


















(including retail pooled funds)


18,299



17,774



17,811




17,539



16,853


Institutional, sub-advisory and ETF accounts AUM


10,960



10,810



11,033




11,087



10,405


Private client AUM


5,143



4,908



4,784




4,586



4,192


Alternative asset management platform AUM


712



685



619




535



268


Total AUM, including alternative asset


















management platform


35,114



34,177



34,247




33,747



31,718



















Net retail redemptions


119



214



303




282



312


Average daily retail fund AUM


17,925



17,756



17,682




17,376



17,327






















1

Net retail redemptions includes a $149.4 million transfer of an existing client from institutional to retail.


 

For further information and detailed financial statements for the first quarter ended February 28, 2017, including Management's Discussion and Analysis, which contains discussions of non-IFRS measures, please refer to AGF's website at www.agf.com under About AGF and Investor Relations and at www.sedar.com.

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/3nptg4ab. Alternatively, the call can be accessed toll-free in North America by dialing 1-800-708-4540 (Passcode #: 44492751).

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

Founded in 1957, AGF Management Limited (AGF) is a diversified global asset management firm with retail, institutional, alternative and high-net-worth businesses. As an independent firm, AGF strives to help investors succeed by delivering excellence in investment management and providing an exceptional client experience. Our suite of diverse investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

AGF has investment operations and client servicing teams on the ground in North America, Europe and Asia. With over $35 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 press release 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,' 'estimates,' '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, revenues, earnings or growth rates), ongoing business strategies or prospects, fund performance, 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, client-driven asset allocation decisions, 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 general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition, taxation, changes in government regulations, unexpected judicial or regulatory proceedings, technological changes, cybersecurity, catastrophic events, and our ability to complete strategic transactions and integrate acquisitions, and attract and retain key personnel. 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 2016 Annual MD&A.

SOURCE AGF

For further information: 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

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