AGF Management Limited Class B · TSX:AGF.B
AGF Management Limited Class B — Scotia Capital Financials Summit 2005
33 slides from AGF Management Limited Class B's conference presentation, Sep 13, 2005
Slide 1: AGF Management Limited: Focused on Results
AGF MANAGEMENT LIMITED FOCUSED ON RESULTS SCOTIA CAPITAL FINANCIALS SUMMIT TUESDAY, SEPTEMBER 13, 2005
Slide 2: Forward-Looking Information
FORWARD-LOOKING INFORMATION This presentation contains certain forward-looking statements that are made based on management’s judgment and expectations but are inherently subject to risks and uncertainties beyond the Corporation’s control. These risks and uncertainties include economic conditions, m
Slide 3: AGF: Focused on Results
AGF: FOCUSED ON RESULTS Established in 1957 Market capitalization: $1.6 billion Total assets under management: $33.3 billion Current Dividend yield: 3.4% August 31, 2005
Slide 4: Revenue and EBITDA
AGF: FOCUSED ON RESULTS REVENUE AND EBITDA 180 160 159.1 166.5 140 158.2 156.6 157.4 158.1 120 100 80 60 79.0 75.5 76.2 69.9 70.5 40 52.8 20 0 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Revenue EBITDA Not including $31.0 million charge in Q4 2004
Slide 5: Corporate Profile — Business Segments
CORPORATE PROFILE — BUSINESS SEGMENTS FOCUSED ON INVESTMENT MANAGEMENT RETAIL FUNDS GROWTH, SYNERGIES MAXIMIZE ROI #1 PRIORITY WITH FUND BUSINESS Investment AGF Trust Other Management AGF Funds Inc. Top supplier to Smith & Williamson advisors of loans, AGF International Advisors mortgages and GICs I
Slide 6: Investment Management Operations: Total AUM Trends
PROFILE — INVESTMENT MANAGEMENT OPERATIONS TOTAL AUM: TRENDS SINCE FISCAL YEAR END PIM and Institutional make up an Investment Management increasing portion of AUM… AGF Funds Inc. Institutional AGF International Advisors Co. Ltd. – Dublin 16% PIM AGF Asset Management Asia – Singapore 16% Mutual Fund
Slide 7: Investment Management Operations: AGF Funds Inc.
PROFILE — INVESTMENT MANAGEMENT OPERATIONS AGF FUNDS INC. Investment • Impressive complement of internal Management managers and external sub advisors AGF Funds Inc. • Internal managers: poised to benefit from AGF International Advisors elimination of foreign content restriction Co. Ltd. – Dublin –
Slide 8: Investment Management Operations: AGFIA
PROFILE — INVESTMENT MANAGEMENT OPERATIONS AGFIA Investment Management AGFIA AGF Funds Inc. • Manager of AGF European Equity Class: – Morningstar rating: 5 star AGF International Advisors Co. Ltd. – Dublin – 1st quartile in almost every measurable period from 3 months to 10 years AGF Asset Managemen
Slide 9: Investment Management Operations: AGF Private Investment Management
PROFILE — INVESTMENT MANAGEMENT OPERATIONS AGF PRIVATE INVESTMENT MANAGEMENT Investment Management AGF Funds Inc. Montreal •$1.1B in assets AGF International Advisors •Core Value Co. Ltd. – Dublin •Large Cap AGF Asset Management Asia – Singapore AGF PIM Vancouver Calgary • $3.2B in assets • Organic
Slide 10: Trust Company Operations: AGF Trust
PROFILE — TRUST COMPANY OPERATIONS AGF TRUST AGF Trust • Operational synergies with AGF Funds Inc. Top supplier to • High growth lender in two segments: advisors of loans, mortgages and GICs – Mortgages – Investment & RSP loans • Total assets of $1.1 billion To Q2 2005
Slide 11: Other: Smith & Williamson Holdings Limited
PROFILE — OTHER SMITH & WILLIAMSON HOLDINGS LIMITED Other • Two complementary businesses: Smith & Williamson – Investment Management and Private Banking Investmaster business with £7.0 billion in AUM (CDN$15.3 billion) – Tax and Business services • Revenue and cost synergies from Smith & Williamson
Slide 12: Other: Investmaster Group Limited
PROFILE — OTHER INVESTMASTER GROUP LIMITED Other • U.K.-based software provider for wealth Smith & Williamson management and institutional brokering Investmaster sectors • Book value of C$26 million • Subject to disciplined review To Q2 2005
Slide 13: Delivering on Commitments: Leadership
AGF — DELIVERING ON COMMITMENTS LEADERSHIP Initiative from last year: Action taken… • Integrate new leadership New leadership in place required to execute renewed • Randy Ambrosie, Executive Vice- sales and marketing plan President, Sales and Marketing • Succession planning for key • Greg Henderson,
Slide 14: Delivering on Commitments: Capital Stewardship
AGF — DELIVERING ON COMMITMENTS CAPITAL STEWARDSHIP Initiative from last year: Action taken… • Look at opportunities to be Aggressive moves efficient with capital • Unisen divestiture • Share buy backs • Dividend increases • ING funds acquisition
Slide 15: Strategic Priorities for 2005/2006
AGF — DELIVERING ON COMMITMENTS STRATEGIC PRIORITIES FOR 2005/2006 1. Continue to enhance client-centric model in core fund business – Investment excellence – Service excellence 2. Promote international investment management competency across multiple channels – Retail funds – Institutional – SMA pl
Slide 16: Randy Ambrosie, Executive Vice-President, Sales and Marketing
AGF MANAGEMENT LIMITED RANDY AMBROSIE EXECUTIVE VICE-PRESIDENT, SALES AND MARKETING
Slide 17: Sales and Marketing Initiatives: Three Areas of Focus
SALES AND MARKETING INITIATIVES THREE AREAS OF FOCUS 1. RELATIONSHIP MANAGEMENT 2. PRODUCTS 3. COMMUNICATIONS AND MARKETING
Slide 18: Relationship Management
RELATIONSHIP MANAGEMENT Foe
Slide 19: Delivering on Commitments: Relationship Management
AGF — DELIVERING ON COMMITMENTS RELATIONSHIP MANAGEMENT Action taken… Initiative from last year: Advisor resources and activity • AGF had an opportunity to • Wholesaling force increased 25% reconnect with our most vital • We have almost tripled the amount constituents, our clients of activity with a
Slide 20: Clients Are at the Heart of Our Business
CLIENTS ARE AT THE HEART OF OUR BUSINESS Advisors and Institutional their clients wholesalers CLIENTS Dealer firms Institutions
Slide 21: Relationship Sales — Wholesaler Activity Increasing
RELATIONSHIP SALES — SUCCESSES IN Q1 & Q2 WHOLESALER ACTIVITY INCREASING Outgoing Phone Number of Advisors Calls Presented To 37,327 4,534 23,800 1,285 FYTD FYTD FYTD FYTD at May at May at May at May 31, 2004 31, 2005 31, 2004 31, 2005 To Q2 2005
Slide 22: Products
PRODUCTS
Slide 23: Delivering on Commitments: Products
AGF — DELIVERING ON COMMITMENTS PRODUCTS Initiative from last year: Action taken… • Absent from strongest selling • Yield continuum categories • Revolutionary fund of funds Initiative from last year: Action taken… • Need for innovative products • AGF U.S. Risk Managed Class • AGF Dividend Income Ini
Slide 24: New Funds Address Product Gap
AGF — PRODUCTS NEW FUNDS ADDRESS PRODUCT GAP Industry Net Sales % of Total, To July 2005 50% 43% 41% 40% 33% 30% 20% 10% 2% 0% -10% -4% -20% -15% Balanced Canadian Bond & Dividend & Mortgage & Foreign & Equity Income Income Real Estate U.S. Shares Number of AGF funds: 2004 8 10 11 0 1 26 Number of A
Slide 25: Potential Blockbuster: AGF Harmony
AGF — PRODUCTS POTENTIAL BLOCKBUSTER AGF HARMONY • Significant milestones achieved: – $1.0 billion in AUM achieved in February ($1.3 billion today) – Monthly Net Sales record of $55.9 million achieved in March 2005 • Category-killer potential
Slide 26: Marketing
MARKETING
Slide 27: Delivering on Commitments: Marketing
AGF — DELIVERING ON COMMITMENTS MARKETING Initiative from last year: Action taken… • Our research showed that • AGF Marketing advisors do not cherish Collateral Program consumer brand advertising • Focus shifted to • Our advertising focused solely channel advertising on brand advertising • Practical
Slide 28: Increased Activity Is Not Enough — We Demand Results
INCREASED ACTIVITY IS NOT ENOUGH — WE DEMAND RESULTS PLAN IMPLEMENT AN C E ENH MEASURE
Slide 29: Relationship Sales – Harmony Due Diligence
RELATIONSHIP SALES – HARMONY DUE DILIGENCE Harmony Due Diligence - Held in early June 2005 Net Sales Target for period ended January 31, 2006 $39,453,150 Post Event Net Sales as of Aug. 1st, 2005: $17,004,311 43.6% reached in 2 months
Slide 30: Relationship Sales – Activity Is Paying Dividends with Advisors
RELATIONSHIP SALES – ACTIVITY IS PAYING DIVIDENDS WITH ADVISORS LA Due Diligence Attendees - Held in May 2005 Pre-Event Average Post-Event Average Weekly Net Sales Weekly Net Sales $-76,088 $145,348
Slide 31: CRM – Investment Is Proving Worthwhile
CRM – INVESTMENT IS PROVING WORTHWHILE… Excerpt from survey review with AGF wholesalers
Slide 32: Relationship Sales — Turning the Tide
RELATIONSHIP SALES — SUCCESSES IN Q1, Q2 & Q3 TURNING THE TIDE Number/Percentage of Advisors in Net Sales* Net Sales Net Redemptions Flat July 20% 25% 55% June 20% 27% 53% May 20% 28% 53% April 20% 28% 52% March 23% 28% 49% February 22% 30% 48% January 21% 33% 46% 0% 10% 20% 30% 40% 50% 60% 70% 80%
Slide 33: AGF Management Limited — The Opportunity
AGF MANAGEMENT LIMITED — THE OPPORTUNITY • Substantial change, managed seamlessly – Enhanced leadership, more disciplined management • Prudent capital management – Active share buy back, increased dividends • Demonstrated ability to realize value from existing assets – Proceeds from Unisen sale exce
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