Fund manager AGF profit below estimates; signs of improvement
By Andrea Hopkins
TORONTO (Reuters) - AGF Management Ltd AGFb.TO notched a smaller-than-expected third-quarter profit on Wednesday, but its stock was little changed on signs the worst may be over for the Canadian fund manager after its recent struggles.
Toronto-based AGF said net income from continuing operations was C$10.1 million ($9.8 million), or 11 Canadian cents per share, compared with a loss of C$19.3 million, or 20 Canadian cents per share, a year earlier.
Analysts had expected profit of 13 Canadian cents per share, according to Thomson Reuters I/B/E/S.
The company took a one-time charge in the year-ago quarter. Excluding that, the adjusted year-ago profit was 11 Canadian cents a share, matching the recent quarter.
While assets under management fell 11.7 percent to C$36.4 billion, high net worth assets under management - a coveted market segment - rose 9 percent to C$3.7 billion from the same period in 2012.
Retail redemptions, which have plagued the mutual fund industry for the last five years as investors flee volatility in the financial market, eased in the quarter, down 15.8 percent from the second quarter and 11.2 percent lower than a year earlier, AGF said.
Gross sales also suggested an improving investment climate, up 36.2 percent from 2012 levels.
AGF shares were little changed following the results, rising 1 Canadian cent to C$12.39 in Toronto. Continued...