TORONTO (Reuters) - AGF Management Ltd (AGFb.TO) reported a smaller-than-expected fourth-quarter profit on Wednesday as the redemption of a single legacy account helped trim assets under management by 12.1 percent, even as global stock markets gained.
The Canadian fund manager, one of the nation’s largest independents, said net income from continuing operations was C$7.1 million ($6.4 million), or 8 Canadian cents per share, in the fourth quarter ended November 30, compared with C$13.0 million, or 14 Canadian cents per share, a year earlier.
Analysts had expected profit of 12 Canadian cents per share, according to Thomson Reuters I/B/E/S.
Revenue for the fourth quarter was C$117.4 million, down 6 percent from C$124.9 million in the same period in 2012 but slightly above estimates of C$116.2 million.
While assets under management dropped to C$34.4 billion at November 30, 2013, largely due to net redemptions within institutional accounts, high-net-worth AUM - a coveted segment of the market - rose 16 percent to C$4.0 billion.
Gross sales in the retail business rose 6.6 percent in 2013 from 2012.
Redemptions, which have plagued the mutual fund industry for the last five years as investors flee volatility in the financial market, were 33.6 percent lower in the quarter from the same period in 2012.
“Since January 2013, each month has shown improvements in the level of retail outflows as compared to the same month of the prior year,” AGF noted in the report.
The C$3.0 billion drop in institutional accounts to C$10.9 billion reflected a C$2.7 billion redemption related to a single legacy account.
Reporting by Andrea Hopkins; Editing by Stephen Powell