AGF Management Limited Reports Fourth Quarter and Fiscal Year 2023 Financial Results

AGÊNCIA DE COMUNICAÇÃO Conteúdo de responsabilidade da empresa 24 de janeiro de 2024

AGF Management Ltd.

TORONTO, Jan. 24, 2024 (GLOBE NEWSWIRE) —

• Reported quarterly adjusted diluted earnings per share of $0.28
• Total assets under management and fee-earning assets of $42.2 billion
• Growth of 18.5% in ETFs and SMA AUM year over year
• Quarterly dividend of $0.11 per share

AGF Management Limited (AGF or the Company) (TSX: AGF.B) today announced financial results for the fourth quarter and fiscal year ended November 30, 2023.

AGF reported total assets under management and fee-earning assets¹ of $42.2 billion compared to $42.3 billion as at August 31, 2023 and $41.8 billion as at November 30, 2022.

In a year characterized by challenging business and market conditions, we demonstrated our resilience and continued to execute on our long-term plan to diversify our business across asset classes and client channels, giving us the stability to persevere and grow, said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF. Looking ahead, we have a strong balance sheet and are well-positioned to deliver on our 2024 business plans.

Mutual fund net redemptions were $224 million compared to net sales of $251 million in the comparative period, however AGF Investments reported ETFs and SMA AUM of $1.5 billion as at November 30, 2023 as compared to $1.2 billion in the comparative period.

These results reflect the continued progress of our sales strategy in 2023 as we focused on diversifying and expanding our client base, while evolving our product offerings and varying our product structures to provide access to our investment capabilities in multiple ways, 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 was recognized as one of Greater Torontos Top Employers 2024. This honour stands as a testament to the firm’s strong culture and the work being done to invest in its people.
• AGF Private Capital Inc. AGFs private markets business signed definitive agreements to acquire a majority interest in Kensington Capital Partners Limited, one of Canadas leading alternative investment firms, as part of AGFs strategic imperative to grow its private markets business. The transaction is expected to close in fiscal Q2-2024 and is subject to the receipt of certain regulatory approvals and closing conditions.
• W. Robert (Bob) Farquharson retired from the AGF Board of Directors and was named Vice-Chairman Emeritus in recognition of his long and successful career at AGF. He first joined AGF in 1963 as an analyst and over a period of 60 years, managed a number of AGF funds and served the company in senior executive and director roles.
• 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.
• Taking a vehicle agnostic approach, AGF Investments expanded its lineup with the launch of AGF Enhanced U.S. Equity Income Fund and AGF Emerging Markets ex China Fund, which are both available as a mutual fund with an ETF series option.
• The firm celebrated 55 years of AGF Management Limiteds stock being listed on the TSX with a Market Open event at the TMX. This longevity is a testament to AGFs history of innovation, a disciplined investment approach and an unwavering commitment to our clients.
• AGF International Advisors Company Limited, a subsidiary of AGF, was once again accepted as a signatory to the UK Stewardship Code, a best-practice benchmark in investment stewardship. 
• AGF European Equity Class (Series F) won a 2023 LSEG Lipper Fund Award in the European Equity category of 20 funds.  
• AGF Investments was recognized with FundGrade A+® Awards for AGF American Growth Class, AGF Fixed Income Plus Fund, AGF Global Convertible Bond Fund and AGF Global Select Fund.

Financial Highlights:

• Adjusted EBITDA¹ for the three months and year ended November 30, 2023, was $27.6 million and $132.5 million, compared to $32.7 million and $105.9 million in the prior year comparative period. Results were adjusted for severance, corporate development and acquisition related expenses of $2.2m and $3.4m for the three months and year ended November 30, 2023 ($2.5m and $4.4m in prior comparative period).
• Net management, advisory and administration fees¹ were $72.0 million and $294.4 million for the three months and year ended November 30, 2023, compared to $70.5 million and $294.5 million for the comparative prior year periods.
• Revenue from Private Capital for the three months and year ended November 30, 2023, was $3.9 million and $33.3 million, compared to $8.5 million and $28.1 million for the comparative prior year period. The decrease quarter over quarter was driven by lower fair value adjustments on AGFs investment in Private Capital long-term investments. Private Capital 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. On an annualized basis, AGF saw an increase in both results from Private Capital Managers and AGFs investment in Private Capital long-term investments.
• Adjusted selling, general and administrative costs¹ were $50.7 million and $205.6 million for the three months and year ended November 30, 2023, compared to $49.0 million and $190.2 million in 2022. The year-over-year increase was impacted by higher incentive compensation, strategic investments made into the business to support our growth plan, including Private Capital, and increases driven by the market environment.
• Adjusted net income¹ was $18.5 million ($0.28 adjusted diluted EPS¹) and $90.3 million ($1.34 adjusted diluted EPS¹), compared to $23.5 million ($0.35 adjusted diluted EPS) and $70.0 million ($1.01 adjusted diluted EPS).

	Three months ended												Years ended
	November 30,				August 31,				November 30,				November 30,				November 30,
(in millions of Canadian dollars, except per share data)		2023				2023				2022				2023				2022
Revenues
Management, advisory and administration fees	$	104.2			$	107.4			$	103.0			$	428.2			$	430.3
Trailing commissions and investment advisory fees		(32.2	)			(33.6	)			(32.5	)			(133.8	)			(135.8	)
Net management, advisory and administration fees1	$	72.0			$	73.8			$	70.5			$	294.4			$	294.5
Deferred sales charges		1.9				1.8				1.8				7.5				7.2
Revenue from Private Capital1		3.9				7.3				8.5				33.3				28.1
Other revenue1		0.5				1.1				0.9				2.9				3.4
Total net revenue1		78.3				84.0				81.7				338.1				333.2
Selling, general and administrative		52.9				50.2				51.5				209.0				194.6
Adjusted selling, general and administrative1		50.7				50.3				49.0				205.6				190.2
Deferred selling commissions																		37.1
EBITDA before commissions1		25.4				33.8				30.2				129.1				138.6
Adjusted EBITDA before commissions1		27.6				33.7				32.7				132.5				143.0
EBITDA1		25.4				33.8				30.2				129.1				101.5
Adjusted EBITDA1		27.6				33.7				32.7				132.5				105.9
Net income		16.8				23.0				21.6				87.7				66.6
Adjusted net income1		18.5				22.9				23.5				90.3				70.0
Diluted earnings per share		0.25				0.34				0.32				1.30				0.96
Adjusted diluted earnings per share1		0.28				0.34				0.35				1.34				1.01
Free cash flow1		18.3				23.0				24.1				80.4				70.3
Dividends per share		0.11				0.11				0.10				0.43				0.39

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