AGF profit falls as markets slump
(Reuters) - Canadian fund manager AGF Management Ltd's (AGFb.TO: Quote) quarterly profit dropped 24 percent and assets under management also fell as declining financial markets pushed investments lower and hurt sales of mutual funds.
For the fiscal second quarter, ended May 31, the company earned C$50.3 million ($48.92 million) from continuing operations, down from C$66.2 million a year ago.
Earnings per share were 25 Canadian cents, down from 35 Canadian cents a year earlier. Earnings per share from continuing investment management operations, excluding earnings from AGF Trust because it has been sold, were 17 Canadian cents a share.
Analysts had expected 28 Canadian cents a share, according to Thomson Reuters I/B/E/S.
Assets under management dropped 16.6 percent to C$43.2 billion as global financial markets declined and redemptions from the investment management segment ate into assets.
The decline in assets under management drove revenue from continuing operations down 15.6 percent to C$133.5 million.
AGF, one of Canada's three big independent asset managers, was hard hit by the 2008 global financial crisis and has struggled to regain its footing.
The mutual fund company said earlier this month that it had sold its AGF Trust Co unit to Laurentian Bank of Canada's B2B Trust subsidiary for C$415.5 million.
"The sale of AGF Trust strengthens our position as a leader focused on our retail and institutional asset management business," Blake Goldring, chief executive of AGF, said in a statement.
"I am proud of what we have already achieved this year in a very difficult market environment and see many opportunities for the growth of our investment management operations, both in Canada and internationally."
Shares of AGF closed at C$11.06 on Tuesday on the Toronto Stock Exchange.
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