Canada's AGF Management reports drop in Q2 AUM

Overview

• AGF fiscal Q2 adjusted EPS at C$0.39

• Total assets under management and fee-earning assets dip to C$53.5 bln from C$53.8 bln

• Announced changes to investment objectives for certain funds, in May

Outlook

• Company remains focused despite economic and political uncertainty.

• AGF confident in disciplined approach for market shifts.

• Company sees sustained growth across three business lines.

• AGF adjusts fees and risk ratings for certain funds to align with market trends.

Result Drivers

• MUTUAL FUND SALES - AGF reports fourth consecutive quarter of positive retail mutual fund net sales, despite challenging environment, per President Judy Goldring

• ASSETS UNDER MANAGEMENT - Total AUM decreased slightly to C$53.5 billion, attributed to ongoing economic and political uncertainty

• COST MANAGEMENT - Lower performance-based compensation and timing of expenses contributed to decreased adjusted EBITDA

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "hold."

• Wall Street's median 12-month price target for AGF Management Ltd is C$14.00, about 4.7% above its last closing price of C$13.34

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nGNX1zmBlS