AGF Management Limited Class B · TSX:AGF.B
AGF Management Limited Class B — Q3 2014 Earnings Presentation
14 slides from AGF Management Limited Class B's earnings presentation, Sep 24, 2014
Slide 1: AGF Management Limited Earnings Conference Call Third Quarter 2014
AGF MANAGEMENT LIMITED EARNINGS CONFERENCE CALL THIRD QUARTER 2014 SEPTEMBER 24, 2014
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of September 24, 2014. 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 secur
Slide 3: Conference Call Participants
CONFERENCE CALL PARTICIPANTS • Blake C. Goldring, CFA, Chairman & Chief Executive Officer • Kevin McCreadie, CFA, President & Chief Investment Officer • Robert J. Bogart, Executive 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 Highlights
Q3 HIGHLIGHTS Continued progress toward stated objectives • President & CIO in place • Improving investment performance • AUM of $37.0 billion • $210 million midstream energy infrastructure fund closed • Board reconfirmed $0.27 dividend 5
Slide 6: Retail Net Redemptions Trend
RETAIL NET REDEMPTIONS TREND Redemption levels have improved significantly; further improvement in fund performance is key to continuing momentum 40% 35% 30% 25% 20% 15% 10% 5% 0% Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Percentage improvement in monthly net outflows vs. prior
Slide 7: InstarAGF
InstarAGF Infrastructure is the preferred alternative asset class among investors Change in Investor Allocation to Infrastructure • A study by Preqin suggests that infrastructure is the preferred alternative asset 16% class 46% • 46% of investors plan on increasing their infrastructure allocation ov
Slide 8: Investment Teams & Performance
INVESTMENT TEAMS & PERFORMANCE Process and risk management work to sustain improvement in investment performance • Talented team in place • Capabilities aligned well with market opportunity • Focus will be on process and risk management • Goal is to sustain improvement in investment performance 8
Slide 9: Institutional Business Review & Pipeline
INSTITUTIONAL BUSINESS REVIEW & PIPELINE ($ millions) Gross Sales Commitments 100 Pipeline Q2 Redemption Notifications (63) Q2 Net Pipeline 37 • YTD net flows of $361 million Gross Sales from Q2 Pipeline 100 • Global Core activity is high Q3 Activity Redemptions from Q2 Pipeline (63) Additional Q3 N
Slide 10: Summary of Financial Results
SUMMARY OF FINANCIAL RESULTS Sequential Quarter Quarter Over Quarter ($ millions, except per share amounts) Q3-14 Q2-14 Change Q3-14 Q3-13 Change Revenue 116.9 119.1 (1.8%) 116.9 117.7 (0.7%) Continuing Operations EBITDA 38.5 38.1 1.0% 38.5 38.6 (0.3%) EBITDA Margin 32.9% 32.0% 2.8% 32.9% 32.8% 0.3%
Slide 11: Financial Results – BPS Detail
FINANCIAL RESULTS – BPS DETAIL SG&A decrease driven by lower stock based compensation (bps of average AUM) Q3-14 Q3-13 TTM Average AUM ($B) 36.3 36.7 36.0 Average Retail 19.8 19.0 19.6 Average Institutional and HNW 16.5 17.7 16.4 Revenue (bps)(1) 123 122 125 Less: Trailer Fees (bps) 36 33 35 (2) SG&
Slide 12: Free Cash Flow
FREE CASH FLOW Strong cash position supports dividend and growth initiatives Free Cash Flow Dividend % of Free Cash Flow (Payout Ratio) $278m 300 40 160% 141% 140% 30 116% ($ millions) 120% 97% 91% 87% 100% 20 80% 26.2 60% 25.4 23.2 10 19.4 40% 16.0 20% - 0% Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 C
Slide 13: 2014 Focus & Priorities
2014 FOCUS & PRIORITIES Focus on sustaining investment performance improvement • Key Execution Points − Sustain investment performance improvement − Retail flows improvement − Leverage opportunities in institutional − Launch core infrastructure fund − Deliver against cost guidance 13
Slide 14: Questions
re ne Tre! ca Fee oe oe oat pe YR ‘at i ek QUESTIONS