- Reported diluted earnings per share of $0.18
- Mutual fund net sales of $330 million for the quarter
- Announces increase in quarterly dividend from $0.09 to $0.10
per share
AGF Management Limited (AGF or the Company)
(TSX: AGF.B) today announced financial results for the first
quarter ended February 28, 2022.
AGF reported total assets under management and
fee-earning assets1 of $42.0 billion compared
to $42.6 billion as at November 30, 2021 and $39.3
billion as at February 28, 2021.
“For the sixth consecutive quarter we are
pleased to report positive mutual fund net sales while continuing
to deliver strong risk-adjusted performance and maintaining a
steadfast focus against our long-term strategy despite a volatile
start to the year against the backdrop of rising interest rates and
the financial fallout from the Russia-Ukraine war,” said Kevin
McCreadie, Chief Executive Officer and Chief Investment Officer,
AGF. “With these results, our strong balance sheet, and net cash,
we are in the position to increase our quarterly dividend for the
second year in a row.”
“We have spent considerable time over the past
year planning and looking ahead to a post-pandemic future of work
that will embrace flexibility as part of AGF’s new hybrid model,”
added McCreadie. “We believe hybrid work will better support our
workforce with a seamless in-office and home working environment
that supports work-life balance, while encouraging greater
collaboration to enable our best work as we continue to deliver for
our clients, shareholders and our employees.”
AGF’s mutual fund gross sales were $989 million
for the quarter compared to $1,042 million in the comparative
period, while net sales were $330 million compared to $385 million
in the comparative period. AGF’s sales have continued to outpace
the industry. Year over year, retail mutual fund gross sales2
declined slightly by 4% compared to an 8% decline for the industry3
and retail mutual fund net sales2 declined by 12% compared to an
55% decline for the industry3.
“We continued to outperform the industry this
quarter and this can be attributed to the diversity of our
distribution strategy,” said Judy Goldring, President and Head of
Global Distribution, AGF. “At AGF we are focused on building
distribution channels that cater to our institutional clients,
wealth advisory segments, and our strategic partners, including a
focus on the mass affluent, a segment that is expected to grow over
the next decade4.”
_______________________________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 gross and net
sales are calculated as reported mutual fund gross and net sales
less non-recurring institutional gross and net sales in excess of
$5 million invested in our mutual funds.3 Long-term funds.4 Source:
Household Balance Sheet Report – Canada 2021, Investor
Economics.
Key Business Highlights:
- March 2022
marked the two-year anniversary of the COVID-19 pandemic. After
operating as a mostly virtual firm for two years, AGF’s offices
have reopened, and employees are gradually increasing their time in
the office with acknowledgement of a longer-term shift to a hybrid
mix of in-office and at-home work environment.
- On February 14,
AGF officially welcomed Ash Lawrence to the firm as Senior
Vice-President, Head of Alternatives, and as a member of the
Executive Management Team. As stated previously, Ash’s leadership
and focus will allow AGF to build on its strong momentum and
strategically deploy capital to effectively grow the firm’s private
alternatives business.
- AGF Investments
Inc. was recognized with FundGrade A+® Awards for AGF Global
Select Fund, AGF U.S. Small-Mid Cap Fund, AGF Global Convertible
Bond Fund and AGFiQ Global Multi-Sector Bond ETF.
- The firm
continues to actively increase returns to shareholders through the
use of its Normal Course Issuer Bid (NCIB). In addition, AGF’s
Board of Directors has approved an 11% increase to the quarterly
dividend for shareholders of record on April 8, 2022.
Financial Highlights:
- Management,
advisory, administration fees and deferred sales charges were
$114.1 million for the three months ended February 28, 2022,
compared to $102.9 million in 2021. The increase in revenue is
attributable to a 7.2% increase in assets under management.
- Selling, general
and administrative costs were $49.3 million for the three months
ended February 28, 2022, compared to $48.0 million in 2021.
Excluding severance of $1.4 million incurred in the quarter,
SG&A of $47.9 million remained flat compared to the prior year
period.
- EBITDA before
commissions for the three months ended February 28, 2022 was $40.0
million, compared to $26.8 million in the prior year comparative
period.
- Net income for
the three months ended February 28, 2022 was $12.9 million ($0.18
diluted EPS), compared to $5.6 million ($0.08 diluted EPS) in
the prior year comparative period.
- EPS in the
quarter of $0.18 reflects growth in top line revenue, which was
partially offset in the period by higher deferred selling
commissions.
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
February 28, |
|
|
|
November 30, |
|
|
February 28, |
|
(in
millions of Canadian dollars, except per share data) |
|
2022 |
|
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Income |
|
|
|
|
|
|
|
|
|
Management, advisory, administration fees |
|
|
|
|
|
|
|
|
|
and deferred sales charges |
$ |
114.1 |
|
|
$ |
114.6 |
|
$ |
102.9 |
|
Share of profit (loss) of joint ventures |
|
(0.6 |
) |
|
|
0.1 |
|
|
0.8 |
|
Other income from fee-earning arrangements |
|
0.8 |
|
|
|
0.8 |
|
|
– |
|
Fair value adjustments and other income |
|
10.6 |
|
|
|
6.4 |
|
|
3.6 |
|
Total Income |
$ |
124.9 |
|
|
$ |
121.9 |
|
$ |
107.3 |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative |
|
49.3 |
|
|
|
49.9 |
|
|
48.0 |
|
|
|
|
|
|
|
|
|
|
|
Deferred selling
commissions |
|
19.3 |
|
|
|
15.3 |
|
|
15.5 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA before
commissions1 |
|
40.0 |
|
|
|
35.5 |
|
|
26.8 |
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
20.7 |
|
|
|
20.2 |
|
|
11.3 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
12.9 |
|
|
|
13.8 |
|
|
5.6 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
0.18 |
|
|
|
0.19 |
|
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
Free cash flow1 |
|
13.3 |
|
|
|
12.5 |
|
|
10.5 |
|
Dividends per share |
|
0.09 |
|
|
|
0.09 |
|
|
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(end of period) |
Three months ended |
|
|
February 28, |
|
|
November 30, |
|
|
February 28, |
|
(in
millions of Canadian dollars) |
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
Mutual fund assets under
management (AUM)2 |
$ |
23,625 |
|
$ |
24,006 |
|
$ |
21,394 |
|
Institutional, sub-advisory
and ETF accounts AUM |
|
9,059 |
|
|
9,371 |
|
|
9,403 |
|
Private client AUM |
|
7,102 |
|
|
7,077 |
|
|
6,300 |
|
Private
alternatives AUM3,4 |
|
69 |
|
|
73 |
|
|
142 |
|
Total AUM3 |
$ |
39,855 |
|
$ |
40,527 |
|
$ |
37,239 |
|
Private
alternatives fee-earning assets3,4 |
|
2,100 |
|
|
2,108 |
|
|
2,012 |
|
Total AUM and fee-earning assets4 |
$ |
41,955 |
|
$ |
42,635 |
|
$ |
39,251 |
|
|
|
|
|
|
|
|
|
|
|
Net mutual fund sales2 |
|
330 |
|
|
352 |
|
|
385 |
|
Average
daily mutual fund AUM3 |
|
24,075 |
|
|
23,896 |
|
|
21,118 |
|
1 EBITDA before commissions (earnings
before interest, taxes, depreciation, amortization and deferred
selling commissions), adjusted EBITDA before commissions, 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.2 Mutual fund AUM includes retail AUM, pooled fund
AUM and institutional client AUM invested in customized series
offered within mutual funds.3 Total AUM and Private alternatives
AUM have been reclassified and restated to exclude co-investment
AUM for comparative purposes.4 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 28, 2022, 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.sedar.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/6bqs4767. Alternatively, the
call can be accessed toll-free in North America by dialing
1 (800) 708-4539 (Passcode #: 50285263).
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. AGF
brings a disciplined approach to delivering excellence in
investment management through its fundamental, quantitative,
alternative and high-net-worth businesses focused on providing an
exceptional client experience. AGF’s suite of investment solutions
extends globally to a wide range of clients, from financial
advisors and individual investors to institutional investors
including pension plans, corporate plans, sovereign wealth funds
and endowments and foundations.
AGF has investment operations and client
servicing teams on the ground in North America, Europe and Asia.
With $42 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.
AGF Management Limited shareholders,
analysts and media, please contact:
Adrian Basaraba Senior Vice-President and Chief
Financial Officer 416-865-4203, InvestorRelations@agf.com
Courtney LearmontVice-President,
Finance647-253-6804, 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 (such as COVID-19), 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 2021 Annual MD&A.
About the Fundata FundGrade A+ Rating
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 Global Select Fund won in the Global Equity
CIFSC Category, out of 1127 funds. The FundGrade A+ start date was
1/31/2012 and the FundGrade A+ end date was 12/31/2021. AGF U.S.
Small-Mid Cap Fund won in the U.S. Small/Mid Cap Equity CIFSC
Category, out of 142 funds. The FundGrade A+ start date was
1/31/2012 and the FundGrade A+ end date was 12/31/2021. AGF Global
Convertible Bond Fund won in the High Yield Fixed Income CIFSC
Category, out of 242 funds. The FundGrade A+ start date was
1/31/2016 and the FundGrade A+ end date was 12/31/2021. AGFiQ
Global Multi-Sector Bond ETF (QGB) won in the Global Fixed Income
CIFSC Category, out of 251 funds. The FundGrade A+ start date was
1/31/2019 and the FundGrade A+ end date was 12/31/2021.
AGF Management (TSX:AGF.B)
Historical Stock Chart
From Feb 2024 to Mar 2024
AGF Management (TSX:AGF.B)
Historical Stock Chart
From Mar 2023 to Mar 2024