(MENAFN- GlobeNewsWire - Nasdaq) TORONTO , Jan. 25, 2023 (GLOBE NEWSWIRE) --
Reported quarterly diluted earnings per share of $0.32 Mutual fund net sales of $251.0 million for the quarter Announced quarterly dividend of $0.10 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, 2022.
AGF reported total assets under management and fee-earning assets1 of $41.8 billion compared to $39.6 billion as at August 31, 2022 and $42.6 billion as at November 30, 2021. Year-over-year, the AUM decline was driven by market volatility.
“In a tumultuous market environment, we continued to outperform the industry, and this is a testament to our disciplined investment approach, risk management process and a product line-up that was designed to be resilient through all market conditions,” said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF.
“Looking ahead, I am excited about our momentum and the opportunities we have in front of us. Not only is our performance strong, but our brand is resonating, and our balance sheet is solid,” added McCreadie.
AGF's mutual fund gross sales were $914 million for the quarter compared to $914 million in the comparative period, while net sales were $251 million compared to $352 million in the comparative period. 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.
“Throughout the past 12 months, we have been focused on maintaining and building upon our impressive momentum as we continue to build key relationships and deliver strong performance,” said Judy Goldring, President and Head of Global Distribution, AGF.“Our positive retail mutual fund sales continued through the quarter as the majority of our best-in-class F-Series Funds received 4 or 5-stars Morningstar Canada ratings.”3
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 Total long-term mutual funds in the Canadian mutual funds industry per Investment Funds Institute of Canada (IFIC).
3 Source:
Key Business Highlights:
Over the last year, AGF transitioned to a hybrid work model as employees moved to a new head office at CIBC SQUARE. The state-of-the-art building provides employees with a flexible workspace, enhanced collaboration and greater communication, while continuing to advance the reduction of the firm's office footprint by approximately 22%. Ash Lawrence joined AGF as Head of AGF Private Capital this year and has started efforts to expand the team. Ash has been charged with leading the continued growth of AGF's private capital business and has presented a formalized strategic plan to the Board. AGF appointed Cybele Negris, CEO and Co-Founder of Webnames.ca Inc., to the AGF Board of Directors effective September 27, 2022. As an accomplished tech entrepreneur and seasoned board member, she further diversifies the collective experience, expertise and perspective of AGF's Board.
AGF Board member Ian Clarke will succeed Douglas L. Derry as Chair of the Audit Committee. Mr. Derry, subsequent to the year-end, is retiring from the Board. AGF thanks Mr. Derry for his contributions over the last 25 years, which included time on both the AGF Board of Directors and the AGF Funds Board. AGF's separately managed accounts (SMA) business gained momentum in 2022. To date, the firm has successfully onboarded SMA strategies onto several U.S. SMA platforms, including Vestmark, SMArtX Advisory Solutions LLC and Envestnet. As at November 30, 2022, AGF's Canadian mutual funds outperformed one-year and three-year investment targets with average percentiles of 41% (target 50%) and 30% (target 40%), respectively, with 1st percentile being best possible performance. On November 14, 2022, AGF announced the completion of its substantial issuer bid (SIB). AGF purchased for cancellation 3,488,646 Class B non-voting shares at a price of $6.75 per share for a total cost of $23.5 million, which represented approximately 5.1% of the total number of AGF's issued and outstanding Class B Non-Voting Shares as of October 3, 2022, the date the SIB was commenced. In 2022, AGF celebrated its 65th anniversary. The firm's longevity is a testament to many things, including a history of innovation, a disciplined investment approach and an unwavering commitment to clients.
Financial Highlights:
Management, advisory, and administration fees were $103.0 million and $430.3 million for the three months and year ended November 30, 2022, compared to $113.0 million and $432.2 million in prior year comparative periods. The decrease in revenue is primarily attributable to a decrease in average mutual fund assets under management. Selling, general and administrative costs were $51.5 million and $194.6 million for the three months and year ended November 30, 2022, compared to $49.9 million and $195.1 million in 2021. EBITDA before commissions for the three months and year ended November 30, 2022 were $30.2 million and $138.6 million, compared to $35.5 million and $127.7 million in the prior year comparative periods. Net income for the three months and year ended November 30, 2022 was $21.6 million ($0.32 diluted EPS) and $66.6 million ($0.96 diluted EPS), compared to $13.8 million ($0.19 diluted EPS) and $39.3 million ($0.55 diluted EPS) in the prior year comparative periods.
| | | | | | | | | | | | | | | | | |
| | | Three months ended | Years ended |
| | | | November 30, | | | August 31, | | | November 30, | | | November 30, | | | November 30, | |
| | (in millions of Canadian dollars, except per share data) | | 2022 | | | 2022 | | | 2021 | | | 2022 | | | 2021 | |
| | | | | | | | | | | | | | | | | |
| | Income | | | | | | | | | | | | | | | |
| | Management, advisory, administration fees and deferred sales charges | $ | 104.8 | | $ | 105.6 | | $ | 114.6 | | $ | 437.5 | | $ | 438.5 | |
| | Share of profit (loss) of joint ventures | | 0.5 | | | – | | | 0.1 | | | (0.3 | ) | | 3.1 | |
| | Other income from fee-earning arrangements | | 0.8 | | | 0.7 | | | 0.8 | | | 3.0 | | | 1.9 | |
| | Fair value adjustments and other income | | 8.1 | | | 6.2 | | | 6.4 | | | 28.8 | | | 18.1 | |
| | Total Income | $ | 114.2 | | $ | 112.5 | | $ | 121.9 | | $ | 469.0 | | $ | 461.6 | |
| | | | | | | | | | | | | | | | | |
| | Selling, general and administrative | | 51.5 | | | 46.4 | | | 49.9 | | | 194.6 | | | 195.1 | |
| | | | | | | | | | | | | | | | | |
| | Deferred selling commissions | | – | | | – | | | 15.3 | | | 37.1 | | | 62.6 | |
| | | | | | | | | | | | | | | | | |
| | EBITDA before commissions1 | | 30.2 | | | 33.2 | | | 35.5 | | | 138.6 | | | 127.7 | |
| | | | | | | | | | | | | | | | | |
| | EBITDA | | 30.2 | | | 33.2 | | | 20.2 | | | 101.5 | | | 65.1 | |
| | | | | | | | | | | | | | | | | |
| | Net income | | 21.6 | | | 22.1 | | | 13.8 | | | 66.6 | | | 39.3 | |
| | | | | | | | | | | | | | | | | |
| | Diluted earnings per share | | 0.32 | | | 0.32 | | | 0.19 | | | 0.96 | | | 0.55 | |
| | | | | | | | | | | | | | | | | |
| | Free cash flow1 | | 24.1 | | | 20.6 | | | 12.5 | | | 70.3 | | | 54.8 | |
| | Dividends per share | | 0.10 | | | 0.10 | | | 0.09 | | | 0.40 | | | 0.34 | |
| | (end of period) | Three months ended | Years ended |
| | | | November 30, | | | August 31, | | | November 30, | | | November 30, | | | November 30, | |
| | (in millions of Canadian dollars) | | 2022 | | | 2022 | | | 2021 | | | 2022 | | | 2021 | |
| | | | | | | | | | | | | | | | | |
| | Mutual fund Assets Under Management (AUM)2 | $ | 23,898 | | $ | 22,496 | | $ | 24,006 | | $ | 23,898 | | $ | 24,006 | |
| | Institutional, sub-advisory and ETF accounts AUM | | 8,514 | | | 7,932 | | | 9,082 | | | 8,514 | | | 9,082 | |
| | Private Wealth AUM | | 7,275 | | | 7,000 | | | 7,366 | | | 7,275 | | | 7,366 | |
| | Private Capital AUM | | 55 | | | 60 | | | 73 | | | 55 | | | 73 | |
| | Total AUM | $ | 39,742 | | $ | 37,488 | | $ | 40,527 | | $ | 39,742 | | $ | 40,527 | |
| | Private Capital fee-earning assets3 | | 2,077 | | | 2,067 | | | 2,108 | | | 2,077 | | | 2,108 | |
| | Total AUM and fee-earning assets3 | | 41,819 | | | 39,555 | | | 42,635 | | | 41,819 | | | 42,635 | |
| | | | | | | | | | | | | | | | | |
| | Mutual fund net sales2 | | 251 | | | 51 | | | 352 | | | 765 | | | 1,432 | |
| | Average daily mutual fund AUM2 | | 22,504 | | | 22,207 | | | 23,896 | | | 22,992 | | | 22,532 | |
| | |
| 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 . |
| 2 | Mutual fund AUM includes retail AUM, pooled fund AUM and institutional client AUM invested in customized series offered within mutual funds. |
| 3 | 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. |
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