AGF Management Limited Reports Second Quarter 2024 Financial Results

AGÊNCIA DE COMUNICAÇÃO Conteúdo de responsabilidade da empresa 26 de junho de 2024

AGF Management Ltd.

TORONTO, June 26, 2024 (GLOBE NEWSWIRE) —

• Reported quarterly adjusted diluted earnings per share of $0.35
• Total assets under management and fee-earning assets of $47.8 billion
• Declared quarterly dividend per share to 11.5 cents

AGF Management Limited (AGF or the Company) (TSX: AGF.B) today announced financial results for the second quarter ended May 31, 2024.

AGF reported total assets under management and fee-earning assets¹ of $47.8 billion compared to $45.0 billion as at February 29, 2024 and $41.2 billion as at May 31, 2023.

“Our solid results reflect the continued strength of our investment performance driven by our disciplined investment approach and bolstered by stronger than anticipated equity market conditions over the past quarter,” said Kevin McCreadie, CEO and Chief Investment Officer at AGF. Our robust performance was complemented by consistent growth across our business lines as conditions turned more supportive and flows showed signs of improvement.

AGFs mutual fund gross sales were $934 million for the quarter compared to $914 million in the previous quarter and $819 million in the prior year quarter. Mutual fund net redemptions were $112 million compared to net redemptions of $125 million in the previous quarter and net sales of $77 million in the prior year quarter.

“We continue to make our capabilities available to clients in a range of vehicles, and we’re seeing the benefits of this approach in particular as our separately managed accounts business continues to grow rapidly in both the U.S. and Canada,” said Judy Goldring, President and Head of Global Distribution, AGF. “Our approach, coupled with our solid investment performance, earned us recognition amongst our peers as we either won or were named a finalist for key industry awards both sides of the border,” Goldring added.

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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 Global Select ADR Constrained Strategy was recently named the winner in the Global category at the SMArtX 2024 X Awards and AGF U.S. Large Cap Growth Equity Strategy was named a finalist in the Large Cap category.
• AGF was named a finalist in three key categories at the Wealth Professional Awards: Employer of Choice, Mutual Fund Provider of the Year and Alternative Investment Solutions Provider of the Year.
• AGF U.S. Market Neutral Anti-Beta Fund (BTAL) was shortlisted for Alternative ETF of the Year at the Mutual Fund & ETF Awards presented by With Intelligence.
• On June 13, Kensington Capital Partners Limited (KCPL) one of Canadas leading alternative asset management firms and a partner of AGF Capital Partners announced the final close of its $290 million Kensington Venture Fund III, which follows a hybrid approach of direct investments into emerging tech companies and venture capital funds. Earlier this year, AGF completed a strategic investment to acquire a majority interest in KCPL as part of the AGF Capital Partners growth strategy.

Financial Highlights:

• AGF completed the acquisition of KCPL on March 8, 2024 and has consolidated KCPL financial results for the quarter ended May 31, 2024 under AGF Capital Partners.
• Adjusted EBITDA¹ for the three months ended May 31, 2024, was $37.0 million, compared to $49.5 million for the three months ended February 29, 2024 and $43.9 million in the prior year comparative period.
• Net management, advisory and administration fees¹ were $81.2 million for the three months ended May 31, 2024, compared to $74.9 million for the three months ended February 29, 2024 and $75.7 million for the comparative prior year period.
• Revenue from AGF Capital Partners for the three months ended May 31, 2024, was $12.0 million, compared to $24.4 million for the three months ended February 29, 2024 and $18.0 million for the comparative prior year period. The decrease quarter over quarter and year over year were driven by lower fair value adjustments and distribution income recorded on AGF Capital Partners, partially offset by the consolidation of KCPL financial results. Revenue from AGF Capital Partners 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 $60.0 million for the three months ended May 31, 2024, compared to $53.5 million for the three months ended February 29, 2024 and $51.9 million for the comparative prior year period.
• Adjusted net income attributable to equity owners was $23.6 million ($0.35 adjusted diluted EPS) for the three months ended May 31, 2024, compared to $33.7 million ($0.51 adjusted diluted EPS) for the three months ended February 29, 2024 and $31.2 million ($0.46 adjusted diluted EPS) for the comparative prior year period.

	Three months ended												Six months ended
	May 31,				February 29,				May 31,				May 31,				May 31,
(in millions of Canadian dollars, except per share data)	2024				2024				2023				2024				2023
Revenues
Management, advisory and administration fees	$	116.4			$	108.6			$	109.8			$	225.0			$	216.6
Trailing commissions and investment advisory fees		(35.2	)			(33.7	)			(34.1	)			(68.9	)			(67.9	)
Net management, advisory and administration fees1	$	81.2			$	74.9			$	75.7			$	156.1			$	148.7
Deferred sales charges		1.9				2.0				2.1				3.9				3.9
Revenue from AGF Capital Partners1		12.0				24.4				18.0				36.4				22.0
Other revenue1		1.9				1.7								3.6				1.3
Total net revenue1		97.0				103.0				95.8				200.0				175.9
Selling, general and administrative		68.2				57.9				53.0				126.1				106.0
Adjusted selling, general and administrative1		60.0				53.5				51.9				113.5				104.6
EBITDA1		26.6				45.1				42.8				71.7				69.9
Adjusted EBITDA1		37.0				49.5				43.9				86.5				71.3
Net income – equity owners of the Company		18.1				30.5				30.3				48.6				47.9
Adjusted net income – equity owners of the Company		23.6				33.7				31.2				57.3				49.0
Diluted earnings per share		0.27				0.46				0.45				0.73				0.71
Adjusted diluted earnings per share		0.35				0.51				0.46				0.86				0.73
Free cash flow1		17.2				17.2				19.8				34.4				39.1
Dividends per share		0.115				0.110				0.110				0.225				0.210

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