UPDATE 1-Canadian fund manager AGF's revenue down as redemptions hit AUM
June 24 (Reuters) - Canadian fund manager AGF Management Ltd reported a 6 percent fall in second-quarter revenue as a drop in assets under management in its institutional accounts drove down management and advisory fee revenue.
Management and advisory fees are the primary sources of revenue for AGF. These fees are calculated based on a specific percentage of the average assets under management.
AGF had C$35.9 billion ($33.1 billion) in total assets under management as of May 31, down 4.5 percent from a year earlier mainly due to net redemptions within institutional accounts.
Redemptions have plagued the mutual fund industry for the past five years due to volatility in the financial market.
Institutional assets under management fell 17 percent to C$11.95 billion at the end of the second quarter ended May 31.
Total revenue fell to C$119.1 million in the second quarter from C$136.9 million, a year earlier.
The company posted a net income from continuing operations of C$14.5 million, or 17 Canadian cents per share, compared with a loss of C$10.4 million, or 12 Canadian cents per share, a year earlier.
Excluding one-time tax expenses recorded during the second quarter of 2013, the company earned 13 Canadian cents per share. Continued...