- Q4 2014 dividend of $0.27 per share to be paid on January 16, 2015 to shareholders of record on January 7, 2015
- Refocuses capital allocation strategy for 2015 to initiatives with greater potential to create shareholder value
- Intends to file to renew share buyback program in February 2015
TORONTO, Dec. 9, 2014 /CNW/ - AGF Management Limited ("AGF or the "Company") today announced that the Board of Directors of AGF declared a dividend of $0.27 per share on both the Class B Non-Voting shares and the Class A Voting common shares of the Company. This will be payable on January 16, 2015 to shareholders of record on January 7, 2015.
AGF also announced a change in its capital allocation strategy for 2015 that will result in retained capital being deployed to initiatives with greater potential to create shareholder value. These include the existing share buyback program and preserving flexibility to execute the Company's growth strategy. The Company intends to file to renew its share buyback program when the current program expires in February 2015. AGF also intends to adjust the quarterly dividend to $.08 per share on both the Class B Non-Voting shares and the Class A Voting common shares for Q1 2015.
"Revisiting the way we allocate capital as we leave 2014 is part of our continuing efforts to position AGF for growth," said Blake C. Goldring, Chairman and Chief Executive Officer of AGF. "Our business continues to strengthen. The improving trajectory in our fund flows continues unabated and our expansion into the alternatives business has gone very well. The capital allocation approach and sustainable dividend, with a yield more consistent with that of our peers, allows us to further our objective of creating long-term shareholder value."
"Execution, improving investment performance, increasing assets under management, and building on partner and client relationships are key areas of focus for AGF," said Kevin McCreadie, President and Chief Investment Officer, AGF Investments Inc. "Retaining capital to preserve flexibility and to invest in AGF, enables us to fuel the Company's momentum. There is an opportunity to build on our investment management platform and to continue to improve our investment performance, while accelerating product development – all in a manner that helps our clients and investors succeed."
"We have successfully launched over $2 billion in new products across our retail and institutional businesses over the last couple of years," Mr. McCreadie added. "On the institutional front, we can increase our footprint and growth internationally, following early success in this area. There is also an opportunity to accelerate the growth of our alternatives platform, where our first $220 million infrastructure fund was well received. The Company remains on track to launch a second fund in the alternatives space in early 2015."
AGF has paid a dividend for 46 years as a public company, remains committed to paying a sustainable dividend, and considers dividends – along with share buybacks – to be effective mechanisms to return value to shareholders. The dividend will continue to be reviewed by the Board of Directors on a quarterly basis, with a focus on growing it over the longer term as cash flows increase.
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 award-winning 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 approximately $37 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 2013 Annual MD&A.
For further information: AGF Management Limited shareholders, analysts please contact: Robert J. Bogart, Executive Vice-President and Chief Financial Officer, 416-865-4264, [email protected]; Adrian Basaraba, Senior Vice-President, Finance, 416-865-4203, [email protected]; Media: Joel Shaffer, Longview Communications, 416-649-8006, [email protected]