- Reported quarterly adjusted diluted earnings per share of
$0.28 - Total assets under management and fee-earning assets of
$42.2 billion - Growth of 18.5% in ETFs and
SMA AUM year over year - Quarterly dividend of
$0.11 per share
“In a year characterized by challenging business and market conditions, we demonstrated our resilience and continued to execute on our long-term plan to diversify our business across asset classes and client channels, giving us the stability to persevere and grow,” said
Mutual fund net redemptions were
“These results reflect the continued progress of our sales strategy in 2023 as we focused on diversifying and expanding our client base, while evolving our product offerings and varying our product structures to provide access to our investment capabilities in multiple ways,” said
1 Fee-earning assets represents assets in which
Key Business Highlights:
AGF was recognized as one of Greater Toronto’s Top Employers 2024. This honour stands as a testament to the firm's strong culture and the work being done to invest in its people.AGF Private Capital Inc. – AGF’s private markets business – signed definitive agreements to acquire a majority interest inKensington Capital Partners Limited , one of Canada’s leading alternative investment firms, as part of AGF’s strategic imperative to grow its private markets business. The transaction is expected to close in fiscal Q2-2024 and is subject to the receipt of certain regulatory approvals and closing conditions.W. Robert (Bob) Farquharson retired from the AGF Board of Directors and was named Vice-Chairman Emeritus in recognition of his long and successful career atAGF . He first joinedAGF in 1963 as an analyst and over a period of 60 years, managed a number ofAGF funds and served the company in senior executive and director roles.AGF announced the appointment of industry veteranKen Tsang to the position of Chief Financial Officer. He is a respected and seasoned leader with nearly 30 years of experience as a strategic finance and corporate development leader in Financial Services.- Taking a vehicle agnostic approach, AGF Investments expanded its lineup with the launch of
AGF Enhanced U.S. Equity Income Fund and AGF Emerging Markets exChina Fund , which are both available as a mutual fund with an ETF series option. - The firm celebrated 55 years of AGF Management Limited’s stock being listed on the TSX with a Market Open event at the TMX. This longevity is a testament to AGF’s history of innovation, a disciplined investment approach and an unwavering commitment to our clients.
AGF International Advisors Company Limited , a subsidiary ofAGF , was once again accepted as a signatory to theUK Stewardship Code, a best-practice benchmark in investment stewardship.- AGF European Equity Class (Series F) won a 2023
LSEG Lipper Fund Award in the European Equity category of 20 funds. - AGF Investments was recognized with FundGrade A+® Awards for
AGF American Growth Class ,AGF Fixed Income Plus Fund ,AGF Global Convertible Bond Fund andAGF Global Select Fund .
Financial Highlights:
- Adjusted EBITDA1 for the three months and year ended
November 30, 2023 , was$27.6 million and$132.5 million , compared to$32.7 million and$105.9 million in the prior year comparative period. Results were adjusted for severance, corporate development and acquisition related expenses of$2.2m and$3.4m for the three months and year endedNovember 30, 2023 ($2.5m and$4.4m in prior comparative period). - Net management, advisory and administration fees1 were
$72.0 million and$294.4 million for the three months and year endedNovember 30, 2023 , compared to$70.5 million and$294.5 million for the comparative prior year periods. - Revenue from
Private Capital for the three months and year endedNovember 30, 2023 , was$3.9 million and$33.3 million , compared to$8.5 million and$28.1 million for the comparative prior year period. The decrease quarter over quarter was driven by lower fair value adjustments on AGF’s investment inPrivate Capital long-term investments.Private Capital long-term investments can be variable quarter to quarter and can be impacted by fair value adjustments, timing of monetizations and cash distributions as well as changes in foreign currency translation as a portion of the investments are held in USD. On an annualized basis,AGF saw an increase in both results from Private Capital Managers and AGF’s investment inPrivate Capital long-term investments. - Adjusted selling, general and administrative costs1 were
$50.7 million and$205.6 million for the three months and year endedNovember 30, 2023 , compared to$49.0 million and$190.2 million in 2022. The year-over-year increase was impacted by higher incentive compensation, strategic investments made into the business to support our growth plan, includingPrivate Capital , and increases driven by the market environment. - Adjusted net income1 was
$18.5 million ($0.28 adjusted diluted EPS1) and$90.3 million ($1.34 adjusted diluted EPS1), compared to$23.5 million ($0.35 adjusted diluted EPS) and$70.0 million ($1.01 adjusted diluted EPS).
Three months ended | Years ended | ||||||||||||||||||
| | | | | |||||||||||||||
(in millions of Canadian dollars, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Revenues | |||||||||||||||||||
Management, advisory and administration fees | $ | 104.2 | $ | 107.4 | $ | 103.0 | $ | 428.2 | $ | 430.3 | |||||||||
Trailing commissions and investment advisory fees | (32.2 | ) | (33.6 | ) | (32.5 | ) | (133.8 | ) | (135.8 | ) | |||||||||
Net management, advisory and administration fees1 | $ | 72.0 | $ | 73.8 | $ | 70.5 | $ | 294.4 | $ | 294.5 | |||||||||
Deferred sales charges | 1.9 | 1.8 | 1.8 | 7.5 | 7.2 | ||||||||||||||
Revenue from | 3.9 | 7.3 | 8.5 | 33.3 | 28.1 | ||||||||||||||
Other revenue1 | 0.5 | 1.1 | 0.9 | 2.9 | 3.4 | ||||||||||||||
Total net revenue1 | 78.3 | 84.0 | 81.7 | 338.1 | 333.2 | ||||||||||||||
Selling, general and administrative | 52.9 | 50.2 | 51.5 | 209.0 | 194.6 | ||||||||||||||
Adjusted selling, general and administrative1 | 50.7 | 50.3 | 49.0 | 205.6 | 190.2 | ||||||||||||||
Deferred selling commissions | – | – | – | – | 37.1 | ||||||||||||||
EBITDA before commissions1 | 25.4 | 33.8 | 30.2 | 129.1 | 138.6 | ||||||||||||||
Adjusted EBITDA before commissions1 | 27.6 | 33.7 | 32.7 | 132.5 | 143.0 | ||||||||||||||
EBITDA1 | 25.4 | 33.8 | 30.2 | 129.1 | 101.5 | ||||||||||||||
Adjusted EBITDA1 | 27.6 | 33.7 | 32.7 | 132.5 | 105.9 | ||||||||||||||
Net income | 16.8 | 23.0 | 21.6 | 87.7 | 66.6 | ||||||||||||||
Adjusted net income1 | 18.5 | 22.9 | 23.5 | 90.3 | 70.0 | ||||||||||||||
Diluted earnings per share | 0.25 | 0.34 | 0.32 | 1.30 | 0.96 | ||||||||||||||
Adjusted diluted earnings per share1 | 0.28 | 0.34 | 0.35 | 1.34 | 1.01 | ||||||||||||||
Free cash flow1 | 18.3 | 23.0 | 24.1 | 80.4 | 70.3 | ||||||||||||||
Dividends per share | 0.11 | 0.11 | 0.10 | 0.43 | 0.39 | ||||||||||||||
(end of period) | Three months ended | Years ended | ||||||||||||||||
| | | | | ||||||||||||||
(in millions of Canadian dollars) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Mutual fund Assets Under Management (AUM)2 | $ | 24,459 | $ | 24,377 | $ | 23,898 | $ | 24,459 | $ | 23,898 | ||||||||
ETF's and | 1,465 | 1,332 | 1,236 | 1,465 | 1,236 | |||||||||||||
Segregated accounts and sub-advisory AUM | 6,774 | 7,058 | 7,204 | 6,774 | 7,204 | |||||||||||||
Total AGF Investments AUM | 32,698 | 32,767 | 32,338 | 32,698 | 32,338 | |||||||||||||
Private Wealth AUM | 7,341 | 7,360 | 7,349 | 7,341 | 7,349 | |||||||||||||
Private Capital AUM | 46 | 42 | 55 | 46 | 55 | |||||||||||||
Total AUM | $ | 40,085 | $ | 40,169 | $ | 39,742 | $ | 40,085 | $ | 39,742 | ||||||||
2,095 | 2,090 | 2,077 | 2,095 | 2,077 | ||||||||||||||
Total AUM and fee-earning assets3 | 42,180 | 42,259 | 41,819 | 42,180 | 41,819 | |||||||||||||
Mutual fund net sales2 | (224 | ) | (151 | ) | 251 | (77 | ) | 765 | ||||||||||
Average daily mutual fund AUM2 | 23,840 | 24,168 | 22,504 | 23,952 | 22,992 | |||||||||||||
1 Net management, advisory and administration fees, revenue from
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
For further information and detailed financial statements for the fourth quarter and year ended
Conference Call
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/5oqk38wy. 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
Founded in 1957,
Headquartered in
About AGF Investments
AGF Investments is a group of wholly owned subsidiaries of
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.
Vice-President, Finance
647-253-6804, 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
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