AGF Management Limited Class B · TSX:AGF.B
AGF Management Limited Class B — Q4 2017 Earnings Presentation
13 slides from AGF Management Limited Class B's earnings presentation, Jan 23, 2018
Slide 1: AGF Management Limited Earnings Conference Call Fourth Quarter 2017
AGF Management Limited Earnings Conference Call Fourth Quarter 2017 January 23rd, 2018
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward looking information is provided as of January 23rd, 2018. 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 Adrian Basaraba, CPA, CA, CFA Senior Vice-President & Chief Financial Officer 3
Slide 4: Today's Discussion
Today’s Discussion • Highlights of the 4th Quarter and Fiscal 2017 • Business Updates – Retail Business – Investment Management – Institutional Business – Alternatives • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Fiscal 2017 Highlights
Fiscal 2017 Highlights Continued progress toward stated objectives AUM above median: Mutual Fund gross 9% AUM 54% over 1 year, sales up 21% Increase 62% over 3 years Achieved Institutional Net Sales of Closed InstarAGF EIF new Unveiled a $740 million $200 million brand 5
Slide 6: Line of Business Performance
Line of Business Performance ($ millions) Q4 2016 Q4 2017 Change Retail funds 17,774 19,111 8% Institutional, Sub Advisory and ETF 10,810 11,782 9% Private Client 4,908 5,517 12% Alternatives 685 902 32% Total 34,177 37,312 9% 6
Slide 7: Retail Business Review
Retail Business Review Trajectory continues to improve Mutual Fund Net Sales1 • Gross sales improved 26% FY 2015 FY 2016 FY 2017 compared to the prior year quarter • Net sales improved 72% (436) compared to the prior year quarter • Industry sales continue to be strong despite uncertainties (1,164) (
Slide 8: Investment Teams & Performance
Investment Teams & Performance 1 and 3 year investment performance targets met AUM above median: Portfolios 54% positioned for client over 1 year, concerns around Global bias risk, volatility, and remains intact 62% global diversification over 3 years 8
Slide 9: Financial Results - Summary
Financial Results - Summary Sequential Quarter Year Over Year Fav / Fav / ($ millions, except per share amounts) Q4-17 Q3-17 2017 2016 (Unfav) (Unfav) Revenue 120.9 110.3 9.6% 455.5 428.7 6.3% 1 Revenue (Adjusted) 110.9 110.3 0.5% 445.5 430.8 3.4% Continuing Operations SG&A 56.1 49.6 (13.1%) 211.0 1
Slide 10: Financial Results – BPS Detail
Financial Results – BPS Detail (bps of average AUM) Q4-17 TTM Average AUM ($B)1 35.2 34.6 Average Retail 18.6 18.4 Average Institutional and Private Client 16.6 16.3 Revenue (bps)2 118 120 Less: Trailer Fees (bps) 36 36 SG&A (bps) 64 62 EBITDA (bps)2 18 22 (1) Average AUM excludes Alternatives platf
Slide 11: Capital & Liquidity
Capital & Liquidity Dividend payout ratio remains within an acceptable range 400% 20 21.2 21.6 350% 300% 15 16.4 250% ($ millions) 200% 10 150% 10.4 10.4 100% 5 50% 60% 60% 30% 38% 29% 0% - -50% Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Free cash flow Dividend % of free cash flow 11
Slide 12: 2018 Focus & Priorities
2018 Focus & Priorities Work towards Sustained consistent Grow sub- Leverage the Investment net sales in advisory and AGFiQ performance retail mutual institutional platform funds 12
Slide 13: Thank You!
Thank You! To learn more about AGF’s history visit: www.agf.com/ca/en/about- agf/our-story