• Reported quarterly adjusted diluted earnings per share of $0.45
  • Total assets under management and fee-earning assets of $53.6 billion
  • Declared quarterly dividend per share of 11.5 cents

TORONTO, Jan. 22, 2025 (GLOBE NEWSWIRE) -- AGF Management Limited (AGF or the Company) (TSX: AGF.B) today announced financial results for the fourth quarter and fiscal year ended November 30, 2024.

AGF reported total assets under management and fee-earning assets1 of $53.6 billion compared to $49.7 billion as at August 31, 2024 and $42.2 billion as at November 30, 2023.

“Throughout 2024, we continued to execute on our multi-year strategy to diversify our business across asset classes and client channels, supporting our ability to grow and thrive through changing market cycles and shifting investor preferences,” said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF. “This year saw us make significant progress against our strategic imperatives.”

AGF's mutual fund gross sales were $993 million for the quarter compared to $1,012 million in the previous quarter and $687 million in the prior year quarter. Mutual fund net sales were $5 million compared to $14 million in the previous quarter and net redemptions of $224 million in the prior year quarter.

“Looking ahead to 2025, our strong balance sheet will allow us to continue investing in key areas of growth to drive returns for our shareholders, including the further buildout of AGF Capital Partners, our multi-boutique alternatives business,” added McCreadie.

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 announced the closing of its strategic investment to acquire a majority interest in Kensington Capital Partners Limited (KCPL), one of Canada's leading alternative investment firms with $2.6 billion of assets under management, as part of AGF's strategic imperative to grow its alternatives business, AGF Capital Partners.
     
  • AGF made a strategic investment in New Holland Capital, LLC (NHC), a New York based multi-strategy investment manager with more than US$6 billion in assets under management and more than 17 years of experience providing institutional investors with absolute return investment strategies across the liquidity spectrum. This transaction further grew AGF Capital Partners, AGF's alternatives business with the addition of absolute return-focused strategies and specialized credit investment capabilities.
     
  • AGF appointed Laura Dottori-Attanasio to the AGF Board of Directors. Ms. Dottori-Attanasio is a renowned business leader with deep expertise in the financial sector and a track record of success across industries. This appointment further enhanced and diversified AGF's independent directors' collective experience and expertise.
     
  • AGF Investments Inc. broadened its Canadian ETF offerings with the launch of ETF Series on long-running funds in key areas of focus for investors, including alternative assets and active fixed income. The launch built on AGF Investments Inc's commitment to provide investors with options to access capabilities in their preferred vehicles.
     
  • 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.

Award Wins

  • AGF Investments Inc. was recognized with FundGrade A+® Awards for AGF American Growth Fund/Class, AGF Global Select Fund, AGF Fixed Income Plus Fund and AGF Global Convertible Bond Fund.
     
  • AGF Global Select ADR Constrained Strategy was 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 SAF Private Credit LP was the winner in the private debt category for best one year return at the 2024 Canadian Hedge Fund Awards.
     
  • AGF Capital Partners Affiliate Manager Kensington was the winner in the private equity category for best five-year return for Kensington Private Equity Fund.
     
  • AGF European Equity Class (Series F) won in the European Equity category at the 2024 LSEG Lipper Fund Awards.

Financial Highlights:

  • Adjusted EBITDA2 for the three months and year ended November 30, 2024 was $39.6 million and $166.4 million, compared to $27.6 million and $132.5 million in the prior year comparative period.
     
  • Net management, advisory and administration fees2 were $83.6 million and $318.4 million for the three months and year ended November 30, 2024, compared to $72.0 million and $294.4 million for the comparative prior year period.
     
  • Adjusted revenue from AGF Capital Partners for the three months and year ended November 30, 2024 was $18.2 million and $72.9 million, compared to $3.9 million and $33.3 million for the comparative prior year period. The increase quarter over quarter and year over year were driven by higher fair value adjustments and 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 performance fees and carried interest.
     
  • Adjusted selling, general and administrative costs2 were $66.2 million and $239.3 million for the three months and year ended November 30, 2024, compared to $50.7 million and $205.6 million for the comparative prior year period. The increase quarter over quarter and year over year were driven by higher performance-based compensation and the market environment, as well as the consolidation of KCPL financial results.
     
  • Adjusted net income attributable to equity owners2 was $29.8 million ($0.45 adjusted diluted EPS) and $111.6 million ($1.67 adjusted diluted EPS) for the three months and year ended November 30, 2024, compared to $18.5 million ($0.28 adjusted diluted EPS) and $90.3 million ($1.34 adjusted diluted EPS) for the comparative prior year period.

 

                 
  Three months ended      Years ended  
(in millions of Canadian dollars, except per share data)  November 30,
2024		        August 31,
2024		        November 30,
2023		        November 30, 
2024		        November 30,
2023
 
                                       
Revenues                                      
Management, advisory and administration fees $ 120.2     $ 114.4     $ 104.2     $ 459.7     $ 428.2  
Trailing commissions and investment advisory fees   (36.6 )     (35.7 )     (32.2 )     (141.3 )     (133.8  
Net management, advisory and administration fees2 $ 83.6     $ 78.7     $ 72.0     $ 318.4     $ 294.4  
Deferred sales charges   1.3       1.4       1.9       6.6       7.5  
Adjusted revenue from AGF Capital Partners2   18.2       18.5       3.9       72.9       33.3  
Other revenue2   2.7       1.2       0.5       7.8       2.9  
Total adjusted net revenue2   105.8       99.8       78.3       405.7       338.1  
                                       
Selling, general and administrative   70.2       66.3       52.9       262.5       209.0  
Adjusted selling, general and administrative2   66.2       59.6       50.7       239.3       205.6  
                                       
EBITDA2   36.9       33.0       25.4       141.7       129.1  
Adjusted EBITDA2   39.6       40.2       27.6       166.4       132.5  
                                       
Net income - equity owners of the Company   28.7       20.3       16.8       97.6       87.7  
Adjusted net income - equity owners of the Company   29.8       24.5       18.5       111.6       90.3  
                                       
Diluted earnings per share   0.43       0.30       0.25       1.46       1.30  
                                       
Adjusted diluted earnings per share   0.45       0.37       0.28       1.67       1.34  
                                       
Free cash flow2   21.4       29.1       20.4       95.4       83.4  
                                       
Dividends per share   0.115       0.115       0.110       0.455       0.430  

 

 

                                 
(end of period) Three months ended    
    Nov. 30,     Aug. 31,     May 31,       Feb. 28,       Nov. 30,  
(in millions of Canadian dollars)   2024     2024     2024       2024       2023  
                                   
Mutual fund assets under management (AUM)3 $ 30,662   $ 28,104   $ 26,961     $ 26,186     $ 24,459  
ETFs and SMA AUM   2,537     2,128     1,800       1,676       1,465  
Segregated accounts and sub-advisory AUM   6,977     6,430     6,313       7,162       6,774  
Total AGF Investments AUM   40,176     36,662     35,074       35,024       32,698  
AGF Private Wealth AUM   8,567     8,186     8,026       7,836       7,341  
AGF Capital Partners AUM   2,752     2,774     2,663       48       46  
Total AUM $ 51,495   $ 47,622   $ 45,763     $ 42,908     $ 40,085  
AGF Capital Partners fee-earning assets4   2,111     2,080     2,081       2,104       2,095  
Total AUM and fee-earning assets4 $ 53,606   $ 49,702   $ 47,844     $ 45,012     $ 42,180  
                                   
Net mutual fund sales (redemptions)3   5     14     (112 )     (125 )     (224 )
Average daily mutual fund AUM3   29,173     27,542     26,604       25,197       23,840  

2 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.
3 Mutual fund AUM includes retail AUM and institutional client AUM invested in customized series offered within mutual funds.
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 fourth quarter and year ended November 30, 2024, 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.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.com or at https://edge.media-server.com/mmc/p/d4cifa7f. Alternatively, the call can be accessed over the phone by registering here or 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 nearly $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 diverse capabilities across both private assets and alternative strategies. Clients benefit from the specialized investment expertise of Affiliate Managers 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$13.3 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. 

 *US AUM converted FX rate at November 30, 2024 (1.41)

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:

Ken Tsang
Chief Financial Officer
416-865-4338, 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.

LSEG Lipper Fund Awards Canada

LSEG Lipper Fund Awards Canada 2024 Winner, AGF European Equity Class (F Series), Best European Equity Fund Over 3 years out of a classification total of 20 funds, for the period ending July 31, 2024.

The corresponding Lipper Leader ratings of the Fund for the period ending July 31, 2024 are as follows: N/A (one year), 5 (three years), 4 (five years), 1 (ten years). The fund's most recent month-end performance is shown in the Net Annual Returns section on AGF European Equity Class Series MF | Product Details | AGF.com.

The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is an objective, quantitative, risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. The highest 20% of funds in each classification are named Lipper Leaders for Consistent Return and receive a rating of 5; the next 20% receive a rating of 4; the middle 20% are rated 3; the next 20% are rated 2; and the lowest 20% are rated 1. Lipper Leader ratings are subject to change every month. For more information, see lipperfundawards.com. Although LSEG Lipper makes reasonable efforts to ensure the accuracy and reliability of the data used to calculate the awards, their accuracy is not guaranteed.

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 American Growth Class won in the U.S. Equity CIFSC Category, out of 794 funds.
AGF American Growth Fund won in the U.S. Equity CIFSC Category, out of 794 funds.
AGF Fixed Income Plus Fund won in the Canadian Fixed Income CIFSC Category, out of 311 funds.
AGF Global Convertible Bond Fund won in the High Yield Fixed Income CIFSC Category, out of 161 funds.
AGF Global Select Fund won in the Global Equity CIFSC Category, out of 1095 funds.
The FundGrade A+ start date was 1/31/2014 and the FundGrade A+ end date was 12/31/2023.

2024 Canadian Hedge Fund Awards

The 2024 Canadian Hedge Fund Awards (CHFA) were awarded in November 2024 and determined on an entirely quantitative process, based on solely on performance data to June 30, 2024, collected and tabulated by Fundata. Eligibility requirements for hedge funds to be considered for a CHFA are that the fund must be domiciled in Canada, must have a track record of at least 1 year to June 30th, must have a minimum of $10 million in AUM and must be in Canadian dollars.  The Private Debt category included credit focused hedge funds in which the majority of the underlying securities are not marked-to-market and must be structured as a mutual fund trust or LP and trade on FundServ. The Private Equity category include equity focused hedge funds in which the majority of the underlying securities are not marked-to-market. Funds must be structured as a mutual fund trust or LP and trade on FundServ. Awards, rankings, and other forms of recognition are not indicative of the Fund's future performance.

SMArtX Awards Criteria and Methodology

Candidates for the Awards are derived from the SMArtX Select List, which ranks asset managers using a proprietary quantitative screening based on a robust four-step methodology:

  1. Ability to generate alpha compared to the strategy peer group benchmark
  2. Favorable risk-adjusted returns that emphasize positive skew
  3. Effective downside and tail-risk management
  4. Consistent return generation

The Awards calculations add an additional metric to this existing quantitative screening, namely performance exclusive to the full previous year. This year, 30 eligible strategies competed with winners ultimately chosen across 10 categories. These categories are grouped by market capitalization, geographic focus, and investment type.

AGF Investments America Inc.'s (AGFA) AGF Global Select ADR Constrained Strategy was awarded SMARTX's X award in the Global category on May 29, 2024. The award was a based on the SMARTX methodology above for the 2023 calendar year. AGFA's AGF U.S. Large Cap Growth Equity Strategy was also a finalist in the Large Cap category.

AGFA did not pay or provide compensation for the SMArtX 2024 X Award ranking or to be included in the eligible strategies list.