20 slides from Agf Management Limited Class B's earnings presentation, Apr 4, 2024
Slide 1: AGF Management Limited Earnings Conference Call First Quarter 2024
AGF Management Limited Earnings Conference Call First Quarter 2024
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward-looking information is provided as of April 4, 2024. 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 securities
Slide 3: Conference Call Participants
Conference Call Participants Presenting Kevin McCreadie, CFA, MBA Chief Executive Officer & Chief Investment Officer Ken Tsang, CFA, CPA, MBA Chief Financial Officer Available for questions Judy G. Goldring, LL.B, LL.D, ICD.D President & Head of Global Distribution Ash Lawrence, MBA Head of AGF Capi
Slide 4: Today's Discussion
Today’s Discussion • Highlights of the 1st Quarter of Fiscal 2024 • Business Updates • Financial Results • Capital & Liquidity • Investment Highlights 4
Slide 5: Q1 2024 Highlights
Q1 2024 Highlights AGF continued to make progress against strategic objectives Assets1 of Adjusted Diluted Strategic EPS of $0.51 $45.0 billion 7% higher year over investments 89% higher than prior in KCPL and NHC2 year year3 Quarterly dividend $320 million increase to in short- and long-term FundGr
Slide 6: Assets Under Management and Fee-earning Assets
Assets Under Management and Fee-earning Assets1,2 Strong momentum in ETFs and SMA ($ millions) Q1 2024 Q1 2023 Change AGF Investments3 Mutual funds 26,186 24,029 9% ETFs and SMA 1,676 1,394 20% Segregated accounts and sub-advisory 7,162 7,045 2% AGF Private Wealth3 7,836 7,324 7% AGF Capital Partner
Slide 7: Mutual Fund Business Review
Mutual Fund Business Review Challenging market environment weigh on industry and AGF net flows Industry Sales ($B)1 AGF Retail Mutual Fund Sales ($M)2 Gross Sales Net Sales Gross Sales Net Sales 982 76 914 70 819 672 687 50 49 633 45 48 227 (9) (4) (16) 76 77 (19) (28) (151) (125) (194) (33) Q4-22 Q
Slide 8: ETFs and SMA AUM
ETFs and SMA AUM Continued to exert growth YoY CAGR 1,676 +49% 1,394 757 Q1 2022 Q1 2023 Q1 2024 Closing AUM ($M) 8
Slide 9: Adjusted Financial Results
Adjusted Financial Results1,2 Favourable Q1 2024 results elevated from AGF Capital Partners revenue Sequential Quarter Year over Year ($ millions, except per share amounts) Q1 2024 Q4 2023 Variance Q1 2023 Variance Net management, advisory and admin fees3 74.9 72.0 4.0% 73.0 2.6% Revenue from AGF Ca
Slide 10: Revised Adjusted SG&A Guidance
Revised Adjusted SG&A Guidance Includes acquisitions & investments to support AGF Capital Partners growth Revised 2024 Adjusted SG&A Guidance ($M) 227 Commentary 18 209 • Revised guidance excludes • any expenses related to Performance Fees and Carried Interest Earned by Kensington • Severance, corpo
Slide 11: Financial Results – BPS Detail
Financial Results – BPS Detail1,2 Lower net mgmt. fee bps offset by higher average AUM Sequential Quarter TTM Q2 2023 to (Average AUM, $ billions) Q1 2024 Q4 2023 Q1 2024 Average AUM excl. AGF Capital Partners ($B)3 41.2 39.2 40.0 Average Mutual Fund 25.2 23.8 24.3 Average Institutional, Sub-Advisor
Slide 12: Capital & Liquidity
Capital & Liquidity1 AGF has excess capital available to fund growth and return to shareholders 100 100% 90 86 90% 84 80 78 80 76 80% 70 70% 60 60% 50 50% 40 35% 34% 36% 40% 32% 31% 30 30% 20 20% 10 10% 0 0% TTM Q1 2023 TTM Q2 2023 TTM Q3 2023 TTM Q4 2023 TTM Q1 2024 TTM FCF TTM Dividend to FCF % (1
Slide 13: Sum of the parts suggests upside to current valuation
Sum of the parts suggests upside to current valuation Core AM AGF Capital Partners – Managers AGF Capital Partners – LT Investments Peer Group1 P/E AGF (25% discount AGF P/E vs. 6x P/E 2 to Average) Peer Group 1.34 8.40 100% 6x 8x -25% 0.96 6.02 0.08 0.50 6x 15x -60% 0.30 1.88 6x n/a -60% 2023 Adj.
Slide 14: AGF Capital Partners
AGF Capital Partners Historical AGF Capital Partners Experience ~$280m1 in Private Credit ~$430m1 of seed distributions2 with a $2.2B4 of AUM/Fee Venture Capital capital across 7 12.3%3 IRR on seed Earning Assets Infrastructure investment vehicles capital Our Strategic Objectives Build diversified a
Slide 15: Strategic Investment in New Holland Capital
Strategic Investment in New Holland Capital New-York based multi-strategy asset manager with 17+ years of experience providing institutional investors with absolute return strategies across the liquidity spectrum. Investments are focused on Meaningful Alpha, Market Diversification and Founded in Cap
Slide 16: AGF's Alternatives Capabilities
AGF’s Alternatives Capabilities Broad suite of solutions spans private and liquid alternatives AGF Capital Partners is AGF’s multi-boutique alternatives business with diverse capabilities across both private assets and alternative strategies. Clients benefit from AGF Capital Partners’ specialized in
Slide 17: 2024 Focus & Priorities
2024 Focus & Priorities Meet updated Maintain sales Deliver consistent Build a diversified expense momentum and and repeatable private capital guidance penetrate high investment and alternatives while continuing growth distribution performance business to invest in key channels growth areas 17
Slide 18: Investment Thesis
Investment Thesis Stable cash flows to fund dividends and growth: Strong Financial • TTM free cash flow and payout ratio of $78m and 36% Position • $320m in long- and short-term investments and no outstanding net debt • Supports strong dividend yield and share buybacks, while investing for growth Ou
Slide 19: Thank You!
Thank You! To learn more about AGF’s history visit: www.agf.com/ca/en/about- agf/our-story To learn more visit AGF.com ® The “AGF” logo and all associated trademarks are registered trademarks or trademarks of AGF Management Limited and used under licence.
Slide 20: Disclaimer
DISCLAIMER About the Fundata FundGrade A+ Rating FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculatio