- Total assets under management increased to $34.2 billion
- Retail net redemptions improved 31.3% compared to prior
year
- Quarterly adjusted EPS from continuing operations increased
to $0.13
TORONTO, Jan. 24, 2017 /CNW/ - AGF Management Limited (AGF
or the Company) today announced financial results for the fourth
quarter and year ended November 30,
2016.
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(from continuing
operations)
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Three months
ended
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Years
ended
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November
30,1
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August
31,2
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November
30,3
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November
30,1,2
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November
30,3
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(in millions of
Canadian dollars, except per share data)
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2016
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2016
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2015
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2016
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2015
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Income
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104.8
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109.4
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105.0
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428.7
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449.6
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Net Income
attributable to equity owners
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of the
Company
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14.6
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8.2
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8.1
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42.5
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48.3
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EBITDA
4
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30.7
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25.3
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25.5
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109.5
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127.2
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Adjusted EBITDA
4
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25.5
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27.4
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28.3
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107.9
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128.7
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Diluted earnings per
share attributable to
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equity owners of the
Company
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0.18
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0.10
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0.11
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0.53
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0.58
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Adjusted diluted
earnings per share attributable to
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equity owners of the
Company
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0.13
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0.13
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0.12
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0.52
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0.58
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Free Cash Flow
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21.2
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12.9
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18.6
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61.5
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67.8
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Dividends per
share
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0.08
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0.08
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0.08
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0.32
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0.51
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Long-term
debt
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188.2
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228.0
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268.8
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188.2
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268.8
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1
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Three months and year
ended November 30, 2016 includes $5.2 million and $3.7 million of
one-time items related to a reversal of a provision from prior
years related to Harmonized Sales Tax and fund related items,
respectively.
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2
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Three months ended
August 31, 2016 and year ended November 30, 2016 includes a $2.1
million charge in income related to the Company's share of a
one-time tax levy for Smith and Williamson Holdings
Limited.
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3
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Three months and year
ended November 30, 2015 includes a one-time restructuring charge of
$2.8 million and $7.2 million, respectively. Year ended November
30, 2015 includes a $5.7 million special distribution from a
long-term investment.
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4
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EBITDA (earnings
before interest, taxes, depreciation and amortization), adjusted
EBITDA and Free Cash Flow are not standardized measures prescribed
by IFRS; however, these are standard measures used in the mutual
fund industry by management, investors and investment analysts to
understand and compare results. We believe these are important
measures as it allows us to assess our investment management
business without the impact of non-operational items. These
non-IFRS measures and reconciliations to IFRS, where necessary, are
included in the Management's Discussion and Analysis available at
www.agf.com.
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Three months
ended
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Years
ended
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November
30,1
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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)
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2016
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2016
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2015
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2016
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2015
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Retail fund Assets
Under Management
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(AUM) (including
retail pooled funds)
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17,774
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17,811
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18,030
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17,774
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18,030
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Institutional and
sub-advisory accounts AUM
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10,810
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11,033
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10,867
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10,810
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10,867
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Private client
AUM
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4,908
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4,784
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4,414
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4,908
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4,414
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Alternative asset
management platform AUM
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685
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619
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268
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685
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268
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Total AUM, including
alternative asset
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management
platform
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34,177
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34,247
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33,579
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34,177
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33,579
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Net retail
redemptions
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214
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303
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249
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1,111
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1,559
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Average daily retail
fund AUM
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17,756
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17,682
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17,964
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17,535
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19,182
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1
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Net retail
redemptions for the three months and year ended November 30, 2016
also includes a $149.4 million transfer of an existing client from
institutional to retail.
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Total assets under management (AUM) increased 1.8% to end the
year at $34.2 billion. Market growth
combined with the trend of lower retail redemptions and AUM growth
in our alternative asset management platform contributed to the
year over year improvement.
During the year ended November 30,
2016, our continued focus on investment performance and
customer service excellence resulted in retail fund net redemptions
improving 31.3% to $1.1 billion
compared to net redemptions of $1.6
billion for the year ended November
30, 2015.
"In 2017, we are proudly celebrating our 60th
anniversary," said Blake C.
Goldring, Chairman and Chief Executive Officer, AGF
Management Limited. "As a diversified global asset management firm,
we are at the forefront of meeting client needs by delivering
best-in-class quality of service, superior investment performance
and innovative investment products."
During the year ended November 30,
2016, InstarAGF Inc. (InstarAGF) achieved multiple closes of
the InstarAGF Essential Infrastructure Fund (EIF). As a result, AGF
received $63.4 million as a return of
capital net of investments, to bring the Company's invested capital
in line with its proportionate share of total commitments.
InstarAGF expects to achieve the final closing of EIF in early
2017.
"Looking back at 2016, we experienced real results and achieved
key milestones within our strategic plan," said Kevin McCreadie, President and Chief Investment
Officer, AGF Investments Inc. "We have purposefully diversified our
investment platform and processes to provide investors and clients
with consistent and repeatable investment performance that delivers
long-term capital growth with downside protection. With our
investment process foundation in place, we are reinvesting in our
growth platforms and capabilities in emerging areas such as
factor-based investing and alternatives."
Income from continuing operations for the three months and year
ended November 30, 2016 was
$104.8 million and $428.7 million compared to $105.0 million and $449.6
million for the three months and year ended November 30, 2015. The year over year decline in
revenue was partly due to the inclusion of a one-time special
distribution of $5.7 million related
to our alternative investments in the year ended November 30, 2015 and a one-time charge of
$2.1 million recorded in the third
quarter of 2016 related to the Company's share of a tax levy
recorded by Smith and Williamson Holdings Limited (S&WHL). The
remainder of the year over year decline in revenue is due to a
combination of lower average AUM and price reductions implemented
in 2016.
Selling, general and administrative expenses (SG&A) for the
three months and year ended November 30,
2016 included a one-time net recovery of certain expenses of
$5.2 million and $3.7 million, respectively. The three months and
year ended November 30, 2015 included
one-time restructuring expenses of $2.8
million and $7.2 million,
respectively.
As a result of the above, EBITDA from continuing operations for
the three months and year ended was $30.7
million and $109.5 million,
compared to $25.5 million and
$127.2 million for the same periods
in 2015.
Diluted earnings per share (EPS) from continuing operations for
the three months and year ended November 30,
2016 was $0.18 and
$0.53, compared to $0.11 and $0.58 for
the three months and year ended November 30,
2015. Diluted EPS from continuing operations for the three
months and year ended November 30,
2016, adjusted for the one-time income and SG&A items
discussed above, was $0.13 and
$0.52, compared to $0.12 and $0.58 for
the same periods in 2015.
For the three months ended November 30,
2016, AGF declared an eight
cent per share dividend on Class A Voting common shares and
Class B Non-Voting shares, payable January
13, 2017 to shareholders on record as at January 6, 2017.
For further information and detailed financial statements for
the fourth quarter and fiscal year ended November 30, 2016, 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 http://edge.media-server.com/m/p/35f4fira.
Alternatively, the call can be accessed toll-free in North America by dialing 1-800-708-4540
(Passcode #: 44130904).
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 a diversified
global asset management firm with retail, institutional,
alternative and high-net-worth businesses. As an independent firm,
we strive to help investors succeed by delivering excellence in
investment management and providing an exceptional client
experience. Our suite of diverse investment solutions extends
globally to a wide range of clients, from financial advisors and
individual investors to institutional investors including pension
plans, corporate plans, sovereign wealth funds and endowments and
foundations.
AGF has investment operations and client servicing teams on the
ground in North America,
Europe and Asia. With over $34
billion in total assets under management, AGF serves more
than one million investors. AGF trades on the Toronto Stock
Exchange under the symbol AGF.B.
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,
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 2016 Annual MD&A.
SOURCE AGF