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AGF hits seven-month low as Q4 misses on redemptions

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AGF Management Ltd. (TSE:AGF.B), a Canadian mutual fund company, fell to the lowest in seven months after reporting a lower-than-expected profit in its fiscal fourth quarter.

AGF fell 7 percent to C$11.55 at 3:16 p.m. in Toronto, after touching C$11.25, the lowest intraday price since July 5.

Net income from continuing operations dropped to C$7.1 million, or 8 Canadian cents a share, in the three months ended Nov. 30, from C$13.0 million, or 14 Canadian cents a share, in the year-earlier period, the Toronto-based company said in a statement today.

Excluding C$3.6 million in restructuring charges, earnings were 11 Canadian cents a share, less than the 12 Canadian cents per share analysts predicted.

Revenue fell 6 percent to C$117.4 million, from C$124.9 million but was slightly above estimates of C$116.2 million.

The company's assets under management slipped to C$34.4 billion as of Nov. 30, largely due to net redemptions within institutional accounts. But the company's high-net-worth assets under management - a coveted segment of the market - rose 16 percent to C$4.0 billion.

Redemptions were 33.6 percent lower in the quarter from a year earlier. Redemptions have plagued the mutual fund industry for the last five years as investors flee volatility in the financial market.

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.

"We continue to focus on our strategic priorities and we are encouraged with the results to date," Chief Executive Officer Blake Goldring said in the statement.

 

 

 

 

Quick facts: AGF Management

Price: 5.85 CAD

TSX:AGF.B
Market: TSX
Market Cap: $450.03 m
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