AGF Management Limited Reports Second Quarter 2023 Financial Results

• Reported quarterly diluted earnings per share of $0.45
• AGF reported its 11th consecutive quarter of positive mutual fund sales reporting net sales of $77 million
• Quarterly dividend of $0.11 per share

TORONTO, June 21, 2023 (GLOBE NEWSWIRE) -- AGF Management Limited (AGF or the Company) (TSX: AGF.B) today announced financial results for the second quarter ended May 31, 2023.

AGF reported total assets under management and fee-earning assets¹ of $41.2 billion compared to $41.9 billion as at February 28, 2023 and $40.3 billion as at May 31, 2022.

“Today we are seeing the results of our collective teams’ efforts and we have made significant progress against our strategic imperatives,” said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF. “We remain focused on the continued diversification of our business including the build out of our private markets platform, AGF Private Capital, and the onboarding of new clients across all channels.”

AGF’s mutual fund gross sales were $819 million for the quarter compared to $818 million in the comparative period. Mutual fund net sales were $77 million compared to $132 million in the comparative period, marking the 11^th consecutive quarter of positive net sales. AGF’s sales have continued to outpace the industry. During the quarter, the industry² reported net redemptions, while AGF mutual funds remained in net sales.

“Given current market volatility and industry pace, we are pleased with the continued success of our sales strategy,” said Judy Goldring, President and Head of Global Distribution, AGF. “The solid execution of our sales strategy has allowed us to diversify and expand our client base and focus on evolving our product offerings and varying product structures to provide access to our investment capabilities in multiple ways to meet their unique needs.”

“We continue to take a thoughtful approach to expense management, focusing on maintaining core expenses while also recognizing the importance of investing in our strategic growth areas including rewarding employees who contribute to the acceleration of our sales strategy and deliver investment outperformance, “added McCreadie.

Key Business Highlights:

• AGF announced the appointment of industry veteran Ken Tsang to the position of Chief Financial Officer. He is a respected and seasoned leader with nearly 30 years of experience as a strategic finance and corporate development leader in Financial Services.
• As part of an ongoing product review and AGF’s commitment to ensuring its lineup is responsive to market trends and regulatory changes, while also delivering competitive pricing, AGF Investments Inc. announced a host of product-related updates to its Canadian lineup, including selective pricing changes, preliminary prospectus filings for new funds and select fund/series closures.
• AGF’s separately managed accounts (SMA) business continued to gain momentum over the quarter as the firm onboarded a sustainable investment strategy onto the U.S. SMA platform of a large global wealth management firm.
• The firm relocated its Boston office to 99 High Street. The expanded space will deliver the same seamless in-office and at-home working experience offered to employees at CIBC SQUARE and AGF’s other locations while supporting the continued build-out of AGF’s U.S. business.  

Financial Highlights:

• Total net revenue was $95.8 million for the three months ended May 31, 2023, compared to $82.7 million in the prior year. The increase was influenced by higher income on Private Capital long-term investments, which can be variable quarter to quarter and impacted by the timing of monetizations and cash distributions.
• Selling, general and administrative costs were $53.0 million for the three months ended May 31, 2023, compared to $47.3 million in 2022. The year-over-year increase in SG&A was impacted by higher incentive compensation as a result of our track record of investment outperformance and the successful execution of our sales strategy, which is to increase our presence in the investment dealer channel. In addition, the increase incorporates strategic investments made into the business to support our growth plan, including Private Capital, as well as increases driven by the market environment.  AGF is committed to being an employer of choice, which means looking at responsible practices and initiatives to attract, develop and reward employees.
• EBITDA before commissions for the three months ended May 31, 2023, was $42.8 million, compared to $35.4 million in the prior year comparative period.
• Net income for the three months ended May 31, 2023, was $30.3 million ($0.45 diluted EPS), compared to $10.1 million ($0.14 diluted EPS) in the prior year comparative period.