Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q4 2023 Earnings Presentation
17 slides from Agf Management Limited Class B's earnings presentation, Jan 24, 2024
Slide 1: AGF Management Limited Earnings Conference Call Fourth Quarter 2023
AGF Management Limited Earnings Conference Call Fourth Quarter 2023
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward-looking information is provided as of January 24, 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 securit
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 Senior Vice-Pres
Slide 4: Today's Discussion
Today’s Discussion • Highlights of the 4th Quarter and Fiscal 2023 • Business Updates • Financial Results • Capital & Liquidity • Investment Highlights 4
Slide 5: Fiscal 2023 Highlights
Fiscal 2023 Highlights AGF continued to make progress against strategic objectives Assets1 of Adjusted Diluted 19% increase in EPS of $1.34 $42.2 billion 1% higher year over SMA & ETFs AUM 33% higher than prior year over year year year2 Free cash flows of $277 million $80 million on a in short- and
Slide 6: Assets Under Management and Fee-earning Assets
Assets Under Management and Fee-earning Assets1,2 Strong momentum in ETFs and SMA ($ millions) Q4 2023 Q4 2022 Change AGF Investments Mutual funds 24,459 23,898 2% ETFs and SMA 1,465 1,236 19% Segregated accounts and sub-advisory 6,774 7,204 (6)% AGF Private Wealth 7,341 7,349 0% AGF Private Capital
Slide 7: Mutual Fund Business Review
Mutual Fund Business Review AGF continued to gain market share in a challenging environment Industry Sales ($B)1 AGF Retail Mutual Fund Sales ($M)2 Gross Sales Net Sales Gross Sales Net Sales Net 70 redemption Net rate3 of redemption 1.8% 982 rate4 of 49 50 0.9% 48 49 45 819 672 687 633 594 227 51 7
Slide 8: ETFs and SMA AUM
ETFs and SMA AUM Continued to exert growth YoY Closing AUM ($M) 1,465 CAGR +47% 1,236 675 Q4 2021 Q4 2022 Q4 2023 8
Slide 9: Adjusted Financial Results
Adjusted Financial Results1,2 2023 financial results supported by DSC ban Sequential Quarter Year over Year ($ millions, except per share amounts) Q4 2023 Q3 2023 Variance FY2023 FY2022 Variance Net management, advisory and admin fees3 72.0 73.8 (2.4%) 294.4 294.5 (0.0%) Deferred sales charges 1.9 1
Slide 10: Financial Results – BPS Detail
Financial Results – BPS Detail1,2 Stable net mgmt. fee bps offset by lower average AUM Sequential Quarter TTM Q1 2023 to (Average AUM, $ billions) Q4 2023 Q3 2023 Q4 2023 Average AUM excl. Private Capital ($B)3 39.2 39.8 39.5 Average Mutual Fund 23.8 24.2 24.0 Average Institutional, Sub-Advisory, 15
Slide 11: Capital & Liquidity
Capital & Liquidity1 AGF has excess capital available to fund growth and return to shareholders 100 90 86 84 80 80 76 70 70 60 ($ millions) 50 40 30 37% 35% 32% 31% 34% 20 10 0 TTM Q4 2022 TTM Q1 2023 TTM Q2 2023 TTM Q3 2023 TTM Q4 2023 TTM Dividend to FCF % TTM FCF (1) Free cash flow represents cas
Slide 12: Our Alternatives Strategy
Our Alternatives Strategy Build diversified private capital & alternatives business meaningful in scale Strategic Offers breadth of strategies with consistent performance for investors Objectives Generates material and sustainable income streams CAGR 8% Alternative CAGR Industry 12% CAGR Growth1 11%
Slide 13: Strategic Investment in Kensington Capital Partners Limited
Strategic Investment in Kensington Capital Partners Limited Kensington Profile • Founded in 1996 AUM ($B) Strategic Rationale • First open-ended Co-invest Private Equity fund 0.2 • Complementary (KPEF) distribution capabilities • Buyout, Growth equity VC 0.8 and client reach and Venture Capital $2.6
Slide 14: 2024 Focus & Priorities
2024 Focus & Priorities Maintain sales Meet expense Deliver consistent Build a diversified momentum and guidance and repeatable Private Capital & penetrate high while continuing investment Alternatives growth distribution to invest in key performance business channels growth areas 14
Slide 15: Investment Thesis
Investment Thesis Stable cash flows to fund dividends and growth: Strong Financial • TTM free cash flow and payout ratio of $80m and 34% Position • $277m in long- and short-term investments and no outstanding net debt • Supports strong dividend yield and share buybacks, while investing for growth. A
Slide 16: 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 17: Disclaimer
DISCLAIMER LSEG Lipper Fund Awards Canada 2023 Winner, AGF European Equity Class (F Series), Best European Equity Fund Over 3 years out of a classification total of 20 funds, for the period ending July 31, 2023. The corresponding Lipper Leader ratings of the Fund for the period ending July 31, 2023