Mr. Kevin McCreadie reports

AGF MANAGEMENT LIMITED REPORTS THIRD QUARTER 2023 FINANCIAL RESULTS

AGF Management Ltd. has released its financial results for the third quarter ended Aug. 31, 2023. AGF reported total assets under management (AUM) and fee-earning assets of $42.3-billion compared with $41.2-billion as at May 31, 2023, and $39.6-billion as at Aug. 31, 2022.

"We continue to see the results of implementing our long-term strategic plan to diversify our business across asset classes and client channels allowing us to persevere through different market cycles," said Kevin McCreadie, chief executive officer and chief investment officer, AGF. "Our flows continue to exceed the industry at a time of heightened market volatility and against a backdrop where investors are feeling pressure due to higher inflation and higher interest rates."

AGF's mutual fund gross sales were $633-million for the quarter compared with $594-million in the comparative period. Mutual fund net redemptions were $151-million compared with sales of $51-million in the comparative period. AGF reported ETFs (exchange-traded funds) and SMA (separately managed accounts) AUM of $1.3-billion as at Aug. 31, 2023, as compared with $900-million in the comparative period.

"Key to our continued success during this time of market uncertainty is the diversification of our product lineup," said Judy Goldring, president and head of global distribution, AGF. "As our clients embrace different ways of accessing our investment capabilities, we are seeing the benefits of our vehicle-agnostic approach in the form of consistent, strong growth in separately managed accounts, both here in Canada as well as in the U.S."

Key business highlights:

• In August, AGF Investments Inc. expanded its lineup with the launch of AGF Enhanced U.S. Equity Income Fund, which is available as a mutual fund with an ETF series option. As the firm takes a more vehicle-agnostic approach, this is the first in a series of strategies expected to launch or to be made available in a mutual fund and ETF.
• AGF continued to experience a better-than-industry redemption rate of 13 per cent in Canadian mutual funds, compared with the industry average of 15 per cent for IFIC (Investment Funds Institute of Canada) reporting firms.
• The firm celebrated 55 years of AGF Management's stock being listed on the Toronto Stock Exchange with a market open event at the TMX. This longevity is a testament to AGF's history of innovation, a disciplined investment approach and an unwavering commitment to its clients.
• AGF International Advisors Company Ltd., a subsidiary of AGF, was once again accepted as a signatory to the United Kingdom Stewardship Code, a best-practice benchmark in investment stewardship.
• Ms. Goldring has been named chair of the Investment Funds Institute of Canada (IFIC). In this role, she leads an experienced board that provides oversight and guidance to IFIC as it carries out its important advocacy work as the voice of Canada's investment funds industry.

Financial highlights:

• EBITDA (earnings before interest, taxes, depreciation and amortization) for the three months ended Aug. 31, 2023, was $33.8-million, compared with $33.2-million in the prior-year comparative period.
• Net management, advisory and administration fees were $73.8-million for the three months ended Aug. 31, 2023, compared with $70.9-million for the comparative prior-year period. Net management, advisory and administration fees are directly related to the company's AUM levels, the proportion of AUM invested in various strategies (that is, equity fund versus fixed income fund) and commission fee structures (that is, fee-based, front-end or deferred sales commission basis).
• Revenue from Private Capital for the three months ended Aug. 31, 2023, was $7.3-million, compared with $6.6-million for the comparative prior-year period. Of the $7.3-million, $2.5-million was generated from AGF's interest in Private Capital managers and $4.8-million was generated from AGF's investment in Private Capital long-term investments, compared with $700,000 and $5.9-million in the comparative prior-year period.
• Selling, general and administrative (SG&A) costs were $50.2-million for the three months ended Aug. 31, 2023, compared with $46.4-million in 2022. The year-over-year increase in SG&A was impacted by higher incentive compensation as a result of the company's record of investment outperformance and the successful execution of its sales strategy, which is to increase AGF's presence in the investment dealer channel. In addition, the increase incorporates strategic investments made into the business to support its growth plan, including Private Capital, as well as increases driven by the market environment. AGF is committed to being an employer of choice, which means looking at responsible practices and initiatives to attract, develop and reward employees.
• Net income for the three months ended Aug. 31, 2023, was $23-million (34 cents diluted EPS (earnings per share)), compared with $22.1-million (32 cents diluted EPS) in the prior-year comparative period.

For further information and detailed financial statements for the third quarter ended Aug. 31, 2023, including management's discussion and analysis (MD&A), which contains discussions of non-IFRS (international financial reporting standards) measures, please refer to AGF's website, under about AGF and investor relations, and at SEDAR.

Conference call

AGF will host a conference call to review its earnings results today at 11 a.m. ET.

The live audio webcast with supporting materials will be available in the investor relations section of AGF's website. Alternatively, the call can be accessed over the phone by registering on-line, or in the investor relations section of AGF's website, to receive the dial-in numbers and unique PIN.

A complete archive of this discussion, along with supporting materials, will be available at the same webcast address within 24 hours of the end of the conference call.

About AGF Management Ltd.

Founded in 1957, AGF Management is an independent and globally diverse asset management firm delivering excellence in investing in the public and private markets through its three distinct business lines: AGF Investments, AGF Private Capital and AGF Private Wealth.

AGF brings a disciplined approach focused on providing an exceptional client experience, and incorporating sound responsible and sustainable practices across its businesses. The firm's collective investment solutions, driven by its fundamental, quantitative and private investing capabilities, extends globally to a wide range of clients, from financial advisers and their clients to high-net-worth and institutional investors, including pension plans, corporate plans, sovereign wealth funds, endowments and foundations.

Headquartered in Toronto, Canada, AGF has investment operations and client servicing teams on the ground in North America and Europe. With over $42-billion in total assets under management and fee-earning assets, AGF serves more than 800,000 investors.

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