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AGF Management Ltd (AGFMF) Q1 2025 Earnings Call Highlights: Strong AUM Growth and Dividend ...

In This Article:

  • AUM and Fee Earning Assets: $53.8 billion, up 20% year-over-year.

  • Retail Mutual Fund Net Sales: $342 million for the quarter.

  • Adjusted Diluted EPS: $0.48 for the quarter.

  • Net Debt: $52 million with $161 million available on the credit facility.

  • Dividend: $0.125 per share, a 9% increase.

  • Mutual Fund AUM: $31 billion, up 19% year-over-year.

  • ETF and SMA AUM: $2.9 billion, up 74% year-over-year.

  • Private Wealth AUM: $8.6 billion, up 10% year-over-year.

  • AGF Capital Partners AUM: $4.6 billion, up $2.5 billion from the prior year.

  • Adjusted EBITDA: $48 million for the quarter.

  • SG&A Expenses: $64 million for the quarter.

  • Adjusted Net Income: $32 million for the quarter.

  • Net Management Fees: $85 million for the quarter.

  • Free Cash Flow: $106 million on a trailing 12-month basis.

  • Share Buybacks: Over 200,000 shares repurchased for approximately $2.4 million.

Release Date: April 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • AGF Management Ltd (AGFMF) reported a 20% year-over-year increase in AUM and fee-earning assets, reaching $53.8 billion.

  • The retail mutual fund business achieved net sales of $342 million, significantly outperforming the Canadian mutual fund industry.

  • Three AGF investment funds received FundGrade A+ Awards for outstanding risk-adjusted performance.

  • The company launched two new alternative products aimed at providing lower volatility and attractive risk-adjusted returns.

  • AGF Management Ltd (AGFMF) increased its quarterly dividend by 9%, marking the fifth consecutive year of dividend growth.

Negative Points

  • Segregated accounts and sub-advisory AUM decreased by 9% due to a shift to passive management by institutional clients.

  • Adjusted EBITDA was $2 million lower compared to the prior year, mainly due to an outsized long-term investment gain in Q1 of last year.

  • The net management fee yield declined by 1 basis point, consistent with the company's guidance of a 1-2 basis point annual decline.

  • The company faces challenges in monetizing long-term investments due to current market conditions.

  • There is potential for increased cash holdings by advisors if market volatility persists, which could impact future sales momentum.

Q & A Highlights

Q: The $9 million distribution income this quarter seemed higher than usual. Is there a seasonal element to this, or was there another reason for the increase? A: Ken Tsang, CFO: There isn't a seasonal element to the distribution income. The increase is mainly due to the discretionary nature of distributions from our private credit funds and other investments.