- 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:
https://www.agf.com/en/top-performers/index.jsp?gclid=EAIaIQobChMIqYnWh6C-_AIVYvfjBx0BjAAJEAAYASAAEgJQsPD_BwE
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.
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Three months ended |
Years ended |
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November 30, |
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August 31, |
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November 30, |
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November 30, |
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November 30, |
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|
|
(in
millions of Canadian dollars, except per share data) |
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
|
|
|
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| |
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 |
|
| |
|
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|
|
|
|
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|
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|
|
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| |
EBITDA before
commissions1 |
|
30.2 |
|
|
33.2 |
|
|
35.5 |
|
|
138.6 |
|
|
127.7 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
EBITDA |
|
30.2 |
|
|
33.2 |
|
|
20.2 |
|
|
101.5 |
|
|
65.1 |
|
| |
|
|
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|
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|
|
|
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|
| |
Net income |
|
21.6 |
|
|
22.1 |
|
|
13.8 |
|
|
66.6 |
|
|
39.3 |
|
| |
|
|
|
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|
|
|
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|
|
|
|
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|
| |
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 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 |
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, 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/veoauyqt.
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 delivering excellence in
investing in the public and private markets through its three
distinct business lines: AGF Investments, AGF Private Capital and
AGF Private Wealth.
AGF brings a disciplined approach focused on providing an
exceptional client experience and incorporating sound responsible
and sustainable practices. The firm’s investment solutions, 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 $40 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:
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 2022 Annual MD&A.
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