- 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.
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(from continuing
operations)
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Three months
ended
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February
28,
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November
30,
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February
29,
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(in millions of
Canadian dollars, except per share data)
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2017
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2016 1
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2016
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Income
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107.2
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104.8
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103.3
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Net Income
attributable to equity owners of the Company
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9.2
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14.6
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10.2
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EBITDA
2
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25.7
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30.7
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27.3
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Adjusted EBITDA
2
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25.7
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25.5
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27.3
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Diluted earnings per
share attributable to
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equity owners of the
Company
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0.11
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0.18
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0.13
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Adjusted diluted
earnings per share attributable to
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equity owners of the
Company 2
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0.11
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0.13
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0.13
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Free Cash Flow
2
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10.4
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21.2
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11.1
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Dividends per
share
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0.08
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0.08
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0.08
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Long-term
debt
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198.3
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188.2
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268.9
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1
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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.
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2
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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.
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Three months
ended
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February
28,
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November
30,
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August
31,
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May
31,
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February
29,
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(in millions of
Canadian dollars)
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2017
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2016 1
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2016
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2016
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2016
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Retail fund Assets
Under Management (AUM)
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(including retail
pooled funds)
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18,299
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17,774
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17,811
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17,539
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16,853
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Institutional,
sub-advisory and ETF accounts AUM
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10,960
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10,810
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11,033
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11,087
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10,405
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Private client
AUM
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5,143
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4,908
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4,784
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4,586
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4,192
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Alternative asset
management platform AUM
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712
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685
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619
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535
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268
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Total AUM, including
alternative asset
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management
platform
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35,114
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34,177
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34,247
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33,747
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31,718
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Net retail
redemptions
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119
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214
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303
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282
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312
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Average daily retail
fund AUM
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17,925
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17,756
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17,682
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17,376
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17,327
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1
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Net retail
redemptions includes a $149.4 million transfer of an existing
client from institutional to retail.
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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