AGF profit falls, says challenges remain

Wed Jan 25, 2012 9:16am EST
 
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(Reuters) - AGF Management Ltd's (AGFb.TO: Quote) quarterly net income fell 29 percent, hurt by market volatility caused by the European debt crisis, and the Canadian wealth manager said challenges remained for the industry.

"The latter half of 2011 brought a return to global market volatility and there are still challenges ahead for the asset management industry," said Chief Executive Blake Goldring.

The Toronto-based company's fourth-quarter earnings fell to C$21.9 million ($21.67 million), or 23 Canadian cents a share, from C$30.9 million, or 34 Canadian cents a share, a year ago.

Revenue nudged up to C$157.8 million from C$155.9 million.

Analysts on average had expected adjusted earnings of 30 Canadian cents per share on revenue of C$162.18 million, according to Thomson Reuters I/B/E/S.

Total assets under management (AUM) climbed 7 percent to C$46 billion as a result of the acquisition of Acuity in the first quarter of 2011.

Shares of the company, which is one of Canada's largest independent investment managers, closed at C$16.89 on Tuesday on the Toronto Stock Exchange.

($1 = 1.0108 Canadian dollars)

(Reporting by Shounak Dasgupta in Bangalore; Editing by Sriraj Kalluvila)