January 28, 2011 / 1:50 PM / in 7 years

UPDATE 2-AGF Management's Q4 profit falls; sees soft 2011

* Q4 EPS C$0.34 vs est. C$0.35

* Q4 rev down 1 pct to C$155.9 mln

* Q4 AUM down 3.6 pct at C$43 mln.

* Expenses up 4.3 pct at C$89.8 mln (Recasts; adds details)

Jan 28 (Reuters) - AGF Management Ltd's (AGFb.TO) quarterly profit fell nearly a third, missing estimates, partly on higher expenses, and the Canadian asset manager warned a subdued housing market could temper growth.

With high levels of household debt challenges remain in the United States and parts of the European economy, the company said in a statement.

Groundbreaking on new U.S. home construction fell more than expected in December to its lowest in over a year, suggesting the battered housing sector remains a major roadblock to economic recovery. [ID:nLDE70I1MG]

AGF Management, which agreed in November to buy Acuity Funds Ltd for C$325 million, earned C$31 million, or 34 Canadian cents a share, in the September-November period.

That compared with an year-ago profit of C$45.5 million, or 50 Canadian cents a share.

Revenue at the company, with a market value of C$1.68 billion, fell 1.1 percent to $155.9 million, while total expenses rose 4.3 percent to $89.8 million.

Analysts on average had expected a profit of 35 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Total assets under management fell 3.6 percent to C$43 million.

Revenue at AGF's investment management operations was flat at $132.4 million, while revenue at its trust company operations fell 3.4 percent to $22.8 million.

AGF shares, which have gained nearly a fifth in value since the company reported third-quarter earnings in September, closed at C$18.86 on Thursday on the Toronto Stock Exchange.

Reporting by Arnika Thakur in Bangalore; Editing by Unnikrishnan Nair

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