Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q3 2016 Earnings Presentation
13 slides from Agf Management Limited Class B's earnings presentation, Sep 28, 2016
Slide 1: AGF Management Limited Earnings Conference Call Third Quarter 2016
AGF MANAGEMENT LIMITED EARNINGS CONFERENCE CALL THIRD QUARTER 2016 SEPTEMBER 28TH, 2016
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of September 28th, 2016. Certain information presented in these remarks and in this presentation that is not historical factual information may constitute forward-looking information within the meaning of sec
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS • Blake C. Goldring, CFA Chairman & Chief Executive Officer • Kevin McCreadie, CFA President & Chief Investment Officer • Adrian Basaraba, CPA, CA, CFA Senior Vice-President & Chief Financial Officer 3
Slide 4: Today's Discussion
TODAY’S DISCUSSION • Highlights of the 3rd Quarter • Business Updates • Retail Business • Investment Management • Institutional Business • Alternatives • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Q3 2016 Highlights
Q3 2016 HIGHLIGHTS Continued progress toward stated objectives • Highlights: • 27% improvement in mutual fund flows compared to Q3 2015 • Completed subsequent close of Essential Infrastructure Fund; final close on track for year end • Adjusted earnings per share of $0.13 • Preliminary prospectus fil
Slide 6: Retail Business Review
RETAIL BUSINESS REVIEW Continued improvement in mutual fund flows • Mutual fund net redemptions improved by 27% despite industry weakness • Product innovation utilizing capabilities around risk and low volatility • Good performance in key categories will drive continued improvement 6
Slide 7: Investment Teams & Performance
INVESTMENT TEAMS & PERFORMANCE Performance improvement remains on track • AUM above median: 1 year 35%, 3 years 47% • Consistent long-term performance in key funds • Portfolios positioned to meet client concerns around risk and volatility 7
Slide 8: Institutional Business Review & Pipeline
INSTITUTIONAL BUSINESS REVIEW & PIPELINE ($ millions) Gross Sales Commitments 125 • Pipeline Net redemptions a result of government Q2 Redemption Notifications (434) policy shift in the United Kingdom Q2 Net Pipeline (309) • Global performance remains strong, as Gross Sales from Q2 Pipeline 123 does
Slide 9: Summary of Financial Results
SUMMARY OF FINANCIAL RESULTS Sequential Quarter Quarter Over Quarter Fav / Fav / ($ millions, except per share amounts) Q3 '16 Q2 '16 Q3 '16 Q3 '15 (Unfav) (Unfav) Revenue 109.4 111.1 (1.5%) 109.4 115.8 (5.5%) SG&A 52.4 54.0 3.0% 52.4 50.1 (4.6%) Continuing Operations EBITDA 25.3 26.2 (3.4%) 25.3 31
Slide 10: Financial Results – BPS Detail
FINANCIAL RESULTS – BPS DETAIL EBITDA yield decline reflects AUM mix shift (bps of average AUM) Q3 ‘16 TTM Average AUM ($B)1 33.3 32.7 Average Retail 17.7 17.6 Average Institutional and HNW 15.6 15.1 Revenue (bps)2 125 124 Less: Trailer Fees (bps) 37 37 3 SG&A (bps) 64 61 3 EBITDA (bps) 24 26 (1) Av
Slide 11: Free Cash Flow
FREE CASH FLOW Dividend payout ratio remains within an acceptable range Free Cash Flow Dividend % of Free Cash Flow (Payout Ratio) 20 160% 18.6 140% 17.0 16.4 120% ($ millions) 100% 12.9 10 11.1 80% 60% 57% 40% 49% 38% 34% 38% 20% - 0% Q3 '15 Q4 '15 Q1 '16 Q2-16 Q3-16 11
Slide 12: 2016 Focus & Priorities
2016 FOCUS & PRIORITIES Continue work on improved investment performance • Key Execution Points • Sustain investment performance improvement • Drive gross sales through retail product development • Integrate FFCM and leverage new product capability • Final close of InstarAGF Essential Infrastructure
Slide 13: Questions
QUESTIONS