TORONTO, June 25, 2025 (GLOBE NEWSWIRE) --
- Reported quarterly adjusted diluted earnings per share of $0.39
- Total assets under management and fee-earning assets of $53.5 billion
- Declared quarterly dividend per share to 12.5 cents
AGF Management Limited (AGF or the Company) (TSX: AGF.B) today announced financial results for the second quarter ended May 31, 2025.
AGF reported total assets under management and fee-earning assets1 of $53.5 billion compared to $53.8 billion as at February 28, 2025 and $47.8 billion as at May 31, 2024.
"We remain focused and continue to deliver despite ongoing economic and political uncertainty, supported by a long-term perspective that has enabled us to stay resilient and strategically positioned for sustained growth across our three business lines," said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF. "As we look to the second half of the year, we are confident that our disciplined approach will allow us to respond to market shifts, deliver consistent results and drive long-term success."
AGF's mutual fund gross sales were $1,148 million for the quarter compared to $1,568 million in the previous quarter and $934 million in the prior year quarter. Retail mutual fund2 net sales were $65 million compared to $342 million in the previous quarter and net redemptions of $112 million in the prior year quarter.
"Through a challenging environment, we experienced our fourth consecutive quarter of positive retail mutual fund and mutual fund net sales outpacing the industry," said Judy Goldring, President and Head of Global Distribution, AGF. "These results and our recent Wealth Professional Award for Mutual Fund Provider of the Year are a testament to our evolving and innovative product lineup as well as our dedication to delivering exceptional value to our clients."
| 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. |
| 2 | Retail mutual fund net sales (redemptions) are calculated as reported mutual fund net sales (redemption) less non-recurring institutional net sales (redemptions) in excess of $5 million invested in our mutual funds. |
Financial and Key Business Highlights:
- Adjusted EBITDA3 for the three months ended May 31, 2025 was $39.5 million, compared to $47.9 million for the three months ended February 28, 2025 and $37.0 million for the comparative prior year period.
- Net management, advisory and administration fees3 for the three months ended May 31, 2025 was $83.8 million, compared to $85.2 million for the three months ended February 28, 2025 and $81.2 million for the comparative prior year period.
- Adjusted revenue from AGF Capital Partners3 for the three months ended May 31, 2025 was $14.6 million, compared to $23.6 million for the three months ended February 28, 2025 and $12.0 million for the comparative prior year period. 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 performance fees and carried interest.
- Adjusted selling, general and administrative costs3 for the three months ended May 31, 2025 was $59.5 million, compared to $63.6 million for the three months ended February 28, 2025 and $60.0 million for the comparative prior year period. The decrease in adjusted SG&A from prior quarter is driven by lower performance-based compensation, timing of expenses and market environment.
- Adjusted net income attributable to equity owners3 for the three months ended May 31, 2025 was $26.0 million ($0.39 adjusted diluted EPS), compared to $32.1 million ($0.48 adjusted diluted EPS) for the three months ended February 28, 2025 and $23.6 million ($0.35 adjusted diluted EPS) for the comparative prior year period.
- At the 2025 Wealth Professional Awards, AGF was named Mutual Fund Provider of the Year. The firm was also honoured as an Excellence Awardee in the Employer of Choice category.
- In May, AGF Investments Inc. announced proposed changes to the investment objectives of AGF Short-Term Income Class and AGF Global Sustainable Growth Equity Fund, subject to securityholder approval at special meetings to be held on or about June 26, 2025.
- This quarter, AGF Investments Inc announced lower management and administration fees and risk ratings for certain funds. These changes build on the firm's commitment to continually reviewing its product line-up to ensure its offerings are responsive to market trends and competitively priced.
| Three months ended | Six months ended | |||||||||||||
| May 31, | Feb. 28, | May 31, | May 31, | May 31, | ||||||||||
| (in millions of Canadian dollars, except per share data) | 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||
| Revenues | ||||||||||||||
| Management, advisory and administration fees | $ | 119.5 | $ | 122.8 | $ | 116.4 | $ | 242.3 | $ | 225.0 | ||||
| Trailing commissions and investment advisory fees | (35.7) | (37.6) | (35.2) | (73.3) | (68.9) | |||||||||
| Net management, advisory and administration fees3 | $ | 83.8 | $ | 85.2 | $ | 81.2 | $ | 169.0 | $ | 156.1 | ||||
| Deferred sales charges | 1.0 | 1.2 | 1.9 | 2.2 | 3.9 | |||||||||
| Adjusted revenue from AGF Capital Partners3 | 14.6 | 23.6 | 12.0 | 38.2 | 36.4 | |||||||||
| Other revenue (loss)3 | (0.4) | 1.5 | 1.9 | 1.1 | 3.6 | |||||||||
| Total adjusted net revenue3 | 99.0 | 111.5 | 97.0 | 210.5 | 200.0 | |||||||||
| Selling, general and administrative | 62.8 | 67.8 | 68.2 | 130.6 | 126.1 | |||||||||
| Adjusted selling, general and administrative3 | 59.5 | 63.6 | 60.0 | 123.1 | 113.5 | |||||||||
| EBITDA3 | 36.2 | 44.2 | 26.6 | 80.4 | 71.7 | |||||||||
| Adjusted EBITDA3 | 39.5 | 47.9 | 37.0 | 87.4 | 86.5 | |||||||||
| Net income - equity owners of the Company | 24.3 | 30.9 | 18.1 | 55.2 | 48.6 | |||||||||
| Adjusted net income - equity owners of the Company3 | 26.0 | 32.1 | 23.6 | 58.1 | 57.3 | |||||||||
| Diluted earnings per share | 0.36 | 0.46 | 0.27 | 0.82 | 0.73 | |||||||||
| Adjusted diluted earnings per share3 | 0.39 | 0.48 | 0.35 | 0.87 | 0.86 | |||||||||
| Free cash flow3 | 24.0 | 31.6 | 23.7 | 55.6 | 44.9 | |||||||||
| Dividends per share | 0.125 | 0.115 | 0.110 | 0.365 | 0.225 | |||||||||
| Three months ended | ||||||||||||||
| May 31, | Feb. 28, | Nov. 30, | Aug. 31, | May 31, | ||||||||||
| (in millions of Canadian dollars) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||
| Mutual fund assets under management (AUM)4 | $ | 30,975 | $ | 31,167 | $ | 30,662 | $ | 28,104 | $ | 26,961 | ||||
| ETFs and SMA AUM | 2,771 | 2,913 | 2,537 | 2,128 | 1,800 | |||||||||
| Segregated accounts and sub-advisory AUM | 6,448 | 6,529 | 6,977 | 6,430 | 6,313 | |||||||||
| Total AGF Investments AUM | 40,194 | 40,609 | 40,176 | 36,662 | 35,074 | |||||||||
| AGF Private Wealth AUM | 8,568 | 8,623 | 8,567 | 8,186 | 8,026 | |||||||||
| AGF Capital Partners AUM | 2,600 | 2,468 | 2,752 | 2,774 | 2,663 | |||||||||
| Total AUM | $ | 51,362 | $ | 51,700 | $ | 51,495 | $ | 47,622 | $ | 45,763 | ||||
| AGF Capital Partners fee-earning assets5 | 2,112 | 2,142 | 2,111 | 2,080 | 2,081 | |||||||||
| Total AUM and fee-earning assets5 | $ | 53,474 | $ | 53,842 | $ | 53,606 | $ | 49,702 | $ | 47,844 | ||||
| Mutual fund net sales (redemptions)4 | 18 | 258 | 5 | 14 | (112) | |||||||||
| Retail mutual fund net sales (redemptions)2 | 65 | 342 | 14 | 19 | (112) | |||||||||
| Average daily mutual fund AUM4 | 29,770 | 30,853 | 29,173 | 27,542 | 26,604 | |||||||||
| 3 | Net management, advisory and administration fees, adjusted revenue from AGF Capital Partners, total net revenue, adjusted selling, general and administrative, EBITDA, adjusted EBITDA, adjusted net income, 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 (http://www.agf.com). |
| 4 | Mutual fund AUM includes retail AUM and institutional client AUM invested in customized series offered within mutual funds. |
| 5 | 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 second quarter ended May 31, 2025, including Management's Discussion and Analysis, which contains discussions of non-IFRS measures, please refer to AGF's website at www.agf.comunder '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.comor at https://edge.media-server.com/mmc/p/m4th2gij. Alternatively, the call can be accessed over the phone by registering hereor 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 over $53 billion in total assets under management and fee-earning assets, AGF serves more than 815,000 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.
About AGF Capital Partners
AGF Capital Partners is AGF's multi-boutique alternatives business with Affiliate Managers across both private assets and alternative strategies across both private assets and alternative strategies. Clients benefit from the specialized investment expertise of Affiliate Managers1 combined with the organizational support and breadth of resources of AGF Management Limited (AGF). With over 18 years average experience, AGF Capital Partners Affiliate Managers including, Kensington Capital Partners Limited, New Holland Capital, LLC and AGF SAF Private Credit, manage approximately C$13.7 billion* in alternative AUM and fee earning assets on behalf of institutional and retail clients. Affiliate Manager AUM may not be consolidated into AGF Management Limited's reported AUM.
*U.S. AUM converted FX rate at May 31, 2025 (1.38)
1 The term 'Affiliate Manager' refers to any partner regardless of relationship structures or revenue sharing agreements. The form of AGF's structured partnership interests in Affiliate Managers differs from Affiliate Manager to Affiliate Manager. The structure of the relationship with a particular Affiliate Manager, or the revenue that AGF agrees to share in, may change. Affiliate Managers only provide investment advisory services or offer products in the jurisdiction where such firm, individuals 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:
Nick Smerek
VP, Financial Planning & Analysis
416-865-4337, 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 2024 Annual MD&A.
