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AGF Management posts Q1 drop in sales on lower investment management revenue

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Fund manager AGF Management (TSE:AGF.B) reported Wednesday that first quarter net income dropped nearly 11 percent due to lower sales amid lower revenue in its investment management operations. 

Net income, for the quarter ended February 29, dipped 10.6 percent to $26.1 million, or 27 cents per share. This is down from $29.2 million, or 32 cents a share, last year.

Total consolidated sales also slipped to $155.5 million from $162.2 million in the first quarter, amid a decrease in investment management operations revenue.

However, total assets under management fell by 8.8 percent to $47.8 billion from $52.5 billion in the same period last year.

Analysts polled by Bloomberg were projecting earnings of 27 cents a share on sales of $156 million.

In a statement, AGF chairman Blake C. Goldring, said: "With the strong rebound in North American equity markets, coupled with the investments we have made in our asset management platform, we feel AGF is well positioned to experience positive momentum in its performance and continued growth in our assets."

AGF Trust loan assets remained constant year-over-year although loan originations of $175.1 million were 254.5 per cent higher than in the first quarter of 2011.

Provision for loan losses decreased 47.1 percent to $1.8 million from $3.4 million in the same period in 2011, reflecting improved economic conditions and a stronger credit quality of the loan book.

The company also declared a dividend of 27 cent per share on Class A voting and Class B non-voting shares, which will be paid to shareholders on April 20.

AGF Management's products include a diversified family of mutual funds. It also manages assets on behalf of institutional investors including pension plans, foundations and endowments as well as for private clients.

Quick facts: AGF Management

Price: 5.2 CAD

TSX:AGF.B
Market: TSX
Market Cap: $404.99 m
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