- Reported quarterly adjusted diluted earnings per share of
$0.51
- Total assets under management and fee-earning assets of $45.0
billion
- Increased quarterly dividend per share to 11.5 cents
AGF Management Limited (AGF or the Company)
(TSX: AGF.B) today announced financial results for the first
quarter ended February 29, 2024.
AGF reported total assets under management and
fee-earning assets1 of $45.0 billion compared
to $42.2 billion as at November 30, 2023 and $41.9
billion as at February 28, 2023.
“Our solid results this quarter reflect our
long-term efforts to diversify our business,” said Kevin McCreadie,
Chief Executive Officer and Chief Investment Officer, AGF. “This
quarter we made further progress with notable strategic investments
laying the foundation for continued long-term growth, including the
growth of AGF Capital Partners, our diversified alternatives
business.”
AGF’s mutual fund gross sales were $914 million
for the quarter compared to $687 million in the previous quarter
and $982 million in the prior year quarter. Mutual fund net
redemptions were $125 million compared to net redemption of $224
million in the previous quarter and net sales of $221 million in
the prior year quarter.
“While the challenging market environment has
weighed on industry and AGF flows, net flows improved during the
quarter due to seasonality. We continue to take a long-term
approach to increasing our penetration in high growth distribution
channels by diversifying our capabilities and offerings.” said Judy
Goldring, President and Head of Global Distribution, AGF.
_________________________1 Fee-earning assets
represents assets in which AGF has carried interest ownership and
earns recurring fees but does not have ownership interest in the
managers.
Key Business Highlights:
- AGF made a strategic investment in New Holland Capital, LLC
(NHC), a New York based multi-strategy investment manager with more
than US$5 billion in assets under management and more than 17
years of experience providing institutional investors with
absolute return investment strategies across the liquidity
spectrum. This transaction further grows AGF Capital Partners,
AGF’s alternatives business with the addition of absolute
return-focused strategies and specialized credit investment
capabilities.
- On March 8th, AGF announced the closing of the previously
announced strategic investment to acquire a majority interest in
Kensington AGF Capital Partners Limited, one of Canada’s leading
alternative investment firms with $2.6 billion of assets under
management, as part of AGF’s strategic imperative to grow its
alternatives business, AGF Capital Partners.
- AGF announced the appointment of Laura Dottori-Attanasio to the
AGF Board of Directors effective April 3, 2024. Ms.
Dottori-Attanasio is a renowned business leader with deep expertise
in the financial sector and a track record of success across
industries. This appointment further enhances and diversifies AGF’s
independent directors’ collective experience and expertise.
- In February, AGF Investments Inc. broadened its Canadian ETF
offerings with the launch of ETF Series on long-running funds in
key areas of focus for investors, including alternative assets and
active fixed income. This launch builds on AGF Investments Inc’s
commitment to provide investors with options to access capabilities
in their preferred vehicles.
- AGF Investments Inc. was recognized with FundGrade A+® Awards
for AGF American Growth Fund/Class, AGF Global Select Fund, AGF
Fixed Income Plus Fund and AGF Global Convertible Bond
Fund.*
Financial Highlights:
- Adjusted EBITDA1 for the three months ended February 29, 2024,
was $49.5 million, compared to $27.6 million for the three months
ended November 30, 2023 and $27.3 million in the prior year
comparative period. Results were adjusted for severance, corporate
development and acquisition related expenses of $4.4 million for
the three months ended February 29, 2024, compared to $2.2 million
for the three months ended November 30, 2023 and $0.2 million in
the comparative prior year period.
- Net management, advisory and administration fees1 were $74.9
million for the three months ended February 29, 2024, compared to
$72.0 million for the three months ended November 30, 2023 and
$73.0 million for the comparative prior year period.
- Revenue from AGF Capital Partners1 for the three months ended
February 29, 2024, was $24.4 million, compared to $3.9 million for
the three months ended November 30, 2023 and $4.0 million for the
comparative prior year period. The increase quarter over quarter
and year over year was driven by higher fair value adjustments and
distribution income recorded on AGF’s Capital Partners long-term
investments. AGF's Capital Partners long-term investments can be
variable quarter to quarter and can be impacted by fair value
adjustments, timing of monetizations and cash distributions as well
as changes in foreign currency translation as a portion of the
investments are held in USD.
- Adjusted selling, general and administrative costs1 were $53.5
million for the three months ended February 29, 2024, compared to
$50.7 million for the three months ended November 30, 2023 and
$52.8 million for the comparative prior year period.
- Adjusted net income was $33.7 million ($0.51 adjusted
diluted EPS) for the three months ended February 29, 2024, compared
to $18.5 million ($0.28 adjusted diluted EPS) for the three months
ended November 30, 2023 and $17.8 million ($0.27 adjusted diluted
EPS) for the comparative prior year period.
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Three months ended |
|
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February 29, |
|
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November 30, |
|
|
February 28, |
|
(in
millions of Canadian dollars, except per share data) |
|
2024 |
|
|
2023 |
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|
2023 |
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Revenues |
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Management, advisory and administration fees |
$ |
108.6 |
|
$ |
104.2 |
|
$ |
106.8 |
|
Trailing commissions and investment advisory fees |
|
(33.7) |
|
|
(32.2) |
|
|
(33.8) |
|
Net management, advisory and administration fees1 |
$ |
74.9 |
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$ |
72.0 |
|
$ |
73.0 |
|
Deferred sales charges |
|
2.0 |
|
|
1.9 |
|
|
1.8 |
|
Revenue from AGF Capital Partners1 |
|
24.4 |
|
|
3.9 |
|
|
4.0 |
|
Other revenue1 |
|
1.7 |
|
|
0.5 |
|
|
1.3 |
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Total net revenue1 |
|
103.0 |
|
|
78.3 |
|
|
80.1 |
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Selling, general and
administrative |
|
57.9 |
|
|
52.9 |
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|
53.0 |
|
Adjusted selling, general and
administrative1 |
|
53.5 |
|
|
50.7 |
|
|
52.8 |
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|
|
EBITDA1 |
|
45.1 |
|
|
25.4 |
|
|
27.1 |
|
Adjusted EBITDA1 |
|
49.5 |
|
|
27.6 |
|
|
27.3 |
|
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|
|
|
|
|
|
|
|
Net income |
|
30.5 |
|
|
16.8 |
|
|
17.6 |
|
Adjusted net income |
|
33.7 |
|
|
18.5 |
|
|
17.8 |
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|
Diluted earnings per
share |
|
0.46 |
|
|
0.25 |
|
|
0.26 |
|
Adjusted diluted earnings per
share |
|
0.51 |
|
|
0.28 |
|
|
0.27 |
|
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Free cash flow1 |
|
17.2 |
|
|
18.3 |
|
|
19.3 |
|
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|
|
|
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|
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Dividends per share |
|
0.11 |
|
|
0.11 |
|
|
0.10 |
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|
(end of period) |
Three months ended |
|
|
February 29, |
|
|
November 30, |
|
|
February 28, |
|
(in
millions of Canadian dollars) |
|
2024 |
|
|
2023 |
|
|
2023 |
|
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Mutual fund assets under management (AUM)2 |
$ |
26,186 |
|
$ |
24,459 |
|
$ |
24,029 |
|
ETFs and SMA AUM |
|
1,676 |
|
|
1,465 |
|
|
1,394 |
|
Segregated accounts and sub-advisory AUM |
|
7,162 |
|
|
6,774 |
|
|
7,045 |
|
Total AGF Investments AUM |
|
35,024 |
|
|
32,698 |
|
|
32,468 |
|
AGF Private Wealth AUM |
|
7,836 |
|
|
7,341 |
|
|
7,324 |
|
AGF
Capital Partners AUM |
|
48 |
|
|
46 |
|
|
54 |
|
Total AUM |
$ |
42,908 |
|
$ |
40,085 |
|
$ |
39,846 |
|
AGF
Capital Partners fee-earning assets3 |
|
2,104 |
|
|
2,095 |
|
|
2,082 |
|
Total AUM and fee-earning
assets3 |
$ |
45,012 |
|
$ |
42,180 |
|
$ |
41,928 |
|
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|
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|
Net mutual fund sales
(redemptions)2 |
|
(125) |
|
|
(224) |
|
|
221 |
|
Average
daily mutual fund AUM2 |
|
25,197 |
|
|
23,840 |
|
|
23,782 |
|
1 |
Net management, advisory and administration fees, revenue from AGF
Capital Partners, other revenue, total net revenue, adjusted
selling, general and administrative, EBITDA, adjusted EBITDA, 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. |
2 |
Mutual fund AUM includes retail AUM and institutional client AUM
invested in customized series offered within mutual funds. |
3 |
Fee-earning assets represents assets in which AGF has carried
interest ownership and earns recurring fees but does not have
ownership interest in the managers. |
|
|
For further information and detailed financial
statements for the first quarter ended February 29, 2024, 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.sedarplus.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 https://edge.media-server.com/mmc/p/avwkx8wd/.
Alternatively, the call can be accessed over the phone
by registering here or in the Investor Relations section
of AGF’s website at www.agf.com, to receive the dial-in
numbers and unique PIN.
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 an independent
and globally diverse asset management firm. Our companies deliver
excellence in investing in the public and private markets through
three business lines: AGF Investments, AGF Capital Partners and AGF
Private Wealth.
AGF brings a disciplined approach, focused on incorporating
sound, responsible and sustainable corporate practices. The firm’s
collective investment expertise, driven by its fundamental,
quantitative and private investing capabilities, extends globally
to a wide range of clients, from financial advisors and their
clients to high-net worth and institutional investors including
pension plans, corporate plans, sovereign wealth funds, endowments
and foundations.
Headquartered in Toronto, Canada, AGF has investment operations
and client servicing teams on the ground in North America and
Europe. With nearly $49 billion in total assets under
management and fee-earning assets, AGF serves more than 800,000
investors. AGF trades on the Toronto Stock Exchange under the
symbol AGF.B.
About AGF Investments
AGF Investments is a group of wholly owned subsidiaries of AGF
Management Limited, a Canadian reporting issuer. The subsidiaries
included in AGF Investments are AGF Investments Inc. (AGFI), AGF
Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and
AGF International Advisors Company Limited (AGFIA). The term AGF
Investments may refer to one or more of these subsidiaries or to
all of them jointly. This term is used for convenience and does not
precisely describe any of the separate companies, each of which
manages its own affairs. AGF Investments entities only provide
investment advisory services or offers investment funds in the
jurisdiction where such firm and/or product is registered or
authorized to provide such services.
Commissions, trailing commissions, management fees and expenses
all may be associated with investment fund investments. Please read
the prospectus before investing. Investment funds are not
guaranteed, their values change frequently, and past performance
may not be repeated.
AGF Management Limited shareholders, analysts and media,
please contact:
Ken TsangChief Financial Officer416-865-4338,
InvestorRelations@agf.com
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, the possible effects of war or terrorist
activities, outbreaks of disease or illness that affect local,
national or international economies, natural disasters and
disruptions to public infrastructure, such as transportation,
communications, power or water supply or other 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 2023 Annual
MD&A.
FundGrade A+® Awards:
FundGrade A+® is used with permission from Fundata Canada
Inc., all rights reserved. The annual FundGrade A+® Awards are
presented by Fundata Canada Inc. to recognize the “best of the
best” among Canadian investment funds. The FundGrade
A+® calculation is supplemental to the monthly FundGrade
ratings and is calculated at the end of each calendar year. The
FundGrade rating system evaluates funds based on their
risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio,
and Information Ratio. The score for each ratio is calculated
individually, covering all time periods from 2 to 10 years. The
scores are then weighted equally in calculating a monthly
FundGrade. The top 10% of funds earn an A Grade; the next 20% of
funds earn a B Grade; the next 40% of funds earn a C Grade; the
next 20% of funds receive a D Grade; and the lowest 10% of funds
receive an E Grade. To be eligible, a fund must have received a
FundGrade rating every month in the previous year. The FundGrade
A+® uses a GPA-style calculation, where each monthly FundGrade
from “A” to “E” receives a score from 4 to 0, respectively. A
fund’s average score for the year determines its GPA. Any fund with
a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For
more information, see www.FundGradeAwards.com. Although
Fundata makes every effort to ensure the accuracy and reliability
of the data contained herein, the accuracy is not guaranteed by
Fundata.
AGF American Growth Class won in the U.S. Equity CIFSC Category,
out of 794 funds. The FundGrade A+ start date was 1/31/2014 and the
FundGrade A+ end date was 12/31/2023.
AGF American Growth Fund won in the U.S. Equity CIFSC Category,
out of 794 funds. The FundGrade A+ start date was 1/31/2014 and the
FundGrade A+ end date was 12/31/2023.
AGF Fixed Income Plus Fund won in the Canadian Fixed Income
CIFSC Category, out of 311 funds. The FundGrade A+ start date was
1/31/2014 and the FundGrade A+ end date was 12/31/2023.
AGF Global Convertible Bond Fund won in the High Yield Fixed
Income CIFSC Category, out of 161 funds. The FundGrade A+ start
date was 1/31/2016 and the FundGrade A+ end date was
12/31/2023.
AGF Global Select Fund won in the Global Equity CIFSC Category,
out of 1095 funds. The FundGrade A+ start date was 1/31/2014 and
the FundGrade A+ end date was 12/31/2023.
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