UPDATE 1-Canadian fund manager AGF's profit rises as expenses fall

Wed Mar 26, 2014 9:14am EDT
 
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March 26 (Reuters) - Canadian fund manager AGF Management Ltd reported a 10 percent rise in quarterly profit as lower stock compensation expenses more than offset the impact of a decline in revenue.

The company's net income from continuing operations rose to C$17.1 million ($15.3 million), or 20 Canadian cents per share, in the first quarter ended Feb. 28 from C$15.6 million, or 17 Canadian cents per share, a year earlier.

Revenue from continuing operations fell about 5 percent to C$116.9 million, hurt by lower management and advisory fees revenue.

AGF had C$36.13 billion in total assets under management as of Feb. 28, down 8 percent from a year earlier mainly due to net redemptions within institutional accounts.

Gross sales in AGF's retail funds rose 3 percent to C$553 million.

Retail fund redemptions fell 8.2 percent in the quarter, as investor sentiment continued to improve.

Redemptions have plagued the mutual fund industry for the past five years due to volatility in the financial market.

AGF's shares closed at C$12.39 on Tuesday on the Toronto Stock Exchange. ($1 = 1.12 Canadian dollars) (Reporting by Ashutosh Pandey in Bangalore; Editing by Kirti Pandey)