AGF Management Limited Reports Second Quarter 2025 Financial Results
TORONTO, June 25, 2025 (GLOBE NEWSWIRE) --
- Reported quarterly adjusted diluted earnings per share of $0.39
- Total assets under management and fee-earning assets of $53.5 billion
- Declared quarterly dividend per share to 12.5 cents
AGF Management Limited (AGF or the Company) (TSX: AGF.B) today announced financial results for the second quarter ended May 31, 2025.
AGF reported total assets under management and fee-earning assets1 of $53.5 billion compared to $53.8 billion as at February 28, 2025 and $47.8 billion as at May 31, 2024.
We remain focused and continue to deliver despite ongoing economic and political uncertainty, supported by a long-term perspective that has enabled us to stay resilient and strategically positioned for sustained growth across our three business lines, said Kevin McCreadie, Chief Executive Officer and Chief Investment Officer, AGF. As we look to the second half of the year, we are confident that our disciplined approach will allow us to respond to market shifts, deliver consistent results and drive long-term success.
AGFs mutual fund gross sales were $1,148 million for the quarter compared to $1,568 million in the previous quarter and $934 million in the prior year quarter. Retail mutual fund2 net sales were $65 million compared to $342 million in the previous quarter and net redemptions of $112 million in the prior year quarter.
Through a challenging environment, we experienced our fourth consecutive quarter of positive retail mutual fund and mutual fund net sales outpacing the industry, said Judy Goldring, President and Head of Global Distribution, AGF. These results and our recent Wealth Professional Award for Mutual Fund Provider of the Year are a testament to our evolving and innovative product lineup as well as our dedication to delivering exceptional value to our clients.
| 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 net sales (redemptions) are calculated as reported mutual fund net sales (redemption) less non-recurring institutional net sales (redemptions) in excess of $5 million invested in our mutual funds. |
Financial and Key Business Highlights:
- Adjusted EBITDA3 for the three months ended May 31, 2025 was $39.5 million, compared to $47.9 million for the three months ended February 28, 2025 and $37.0 million for the comparative prior year period.
- Net management, advisory and administration fees3 for the three months ended May 31, 2025 was $83.8 million, compared to $85.2 million for the three months ended February 28, 2025 and $81.2 million for the comparative prior year period.
- Adjusted revenue from AGF Capital Partners3 for the three months ended May 31, 2025 was $14.6 million, compared to $23.6 million for the three months ended February 28, 2025 and $12.0 million for the comparative prior year period. 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 costs3 for the three months ended May 31, 2025 was $59.5 million, compared to $63.6 million for the three months ended February 28, 2025 and $60.0 million for the comparative prior year period. The decrease in adjusted SG&A from prior quarter is driven by lower performance-based compensation, timing of expenses and market environment.
- Adjusted net income attributable to equity owners3 for the three months ended May 31, 2025 was $26.0 million ($0.39 adjusted diluted EPS), compared to $32.1 million ($0.48 adjusted diluted EPS) for the three months ended February 28, 2025 and $23.6 million ($0.35 adjusted diluted EPS) for the comparative prior year period.
- At the 2025 Wealth Professional Awards, AGF was named Mutual Fund Provider of the Year. The firm was also honoured as an Excellence Awardee in the Employer of Choice category.
- In May, AGF Investments Inc. announced proposed changes to the investment objectives of AGF Short-Term Income Class and AGF Global Sustainable Growth Equity Fund, subject to securityholder approval at special meetings to be held on or about June 26, 2025.
- This quarter, AGF Investments Inc announced lower management and administration fees and risk ratings for certain funds. These changes build on the firms commitment to continually reviewing its product line-up to ensure its offerings are responsive to market trends and competitively priced.
| Three months ended | Six months ended | |||||||||||||
| May 31, | Feb. 28, | May 31, | May 31, | May 31, | ||||||||||
| (in millions of Canadian dollars, except per share data) | 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||
| Revenues | ||||||||||||||
| Management, advisory and administration fees | $ | 119.5 | $ | 122.8 | $ | 116.4 | $ | 242.3 | $ | 225.0 | ||||
| Trailing commissions and investment advisory fees | (35.7) | (37.6) | (35.2) | (73.3) | (68.9) | |||||||||
| Net management, advisory and administration fees3 | $ | 83.8 | $ | 85.2 | $ | 81.2 | $ | 169.0 | $ | 156.1 | ||||
| Deferred sales charges | 1.0 | 1.2 | 1.9 | 2.2 | 3.9 | |||||||||
| Adjusted revenue from AGF Capital Partners3 | 14.6 | 23.6 | 12.0 | 38.2 | 36.4 | |||||||||
| Other revenue (loss)3 | (0.4) | 1.5 | 1.9 | 1.1 | 3.6 | |||||||||
| Total adjusted net revenue3 | 99.0 | 111.5 | 97.0 | 210.5 | 200.0 | |||||||||
| Selling, general and administrative | 62.8 | 67.8 | 68.2 | 130.6 | 126.1 | |||||||||
| Adjusted selling, general and administrative3 | 59.5 | 63.6 | 60.0 | 123.1 | 113.5 | |||||||||
| EBITDA3 | 36.2 | 44.2 | 26.6 | 80.4 | 71.7 | |||||||||
| Adjusted EBITDA3 | 39.5 | 47.9 | 37.0 | 87.4 | 86.5 | |||||||||
| Net income - equity owners of the Company | 24.3 | 30.9 | 18.1 | 55.2 | 48.6 | |||||||||
| Adjusted net income - equity owners of the Company3 | 26.0 | 32.1 | 23.6 | 58.1 | 57.3 | |||||||||
| Diluted earnings per share | 0.36 | 0.46 | 0.27 | 0.82 | 0.73 | |||||||||
| Adjusted diluted earnings per share3 | 0.39 | 0.48 | 0.35 | 0.87 | 0.86 | |||||||||
| Free cash flow3 | 24.0 | 31.6 | 23.7 | 55.6 | 44.9 | |||||||||
| Dividends per share | 0.125 | 0.115 | 0.110 | 0.365 | 0.225 | |||||||||
| Three months ended | ||||||||||||||
| May 31, | Feb. 28, | Nov. 30, | Aug. 31, | May 31, | ||||||||||
| (in millions of Canadian dollars) | 2025 | 2025 | 2024 | 2024 | 2024 | |||||||||
| Mutual fund assets under management (AUM)4 | $ | 30,975 | $ | 31,167 | $ | 30,662 | $ | 28,104 | $ | 26,961 | ||||
| ETFs and SMA AUM | 2,771 | 2,913 | 2,537 |
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