Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q4 2016 Earnings Presentation
13 slides from Agf Management Limited Class B's earnings presentation, Jan 24, 2017
Slide 1: AGF Management Limited Earnings Conference Call Fourth Quarter 2016
AGF MANAGEMENT LIMITED EARNINGS CONFERENCE CALL FOURTH QUARTER 2016 JANUARY 24TH, 2017
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of January 24th, 2017. 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 2016 • Business Updates • Retail Business • Investment Management • Institutional Business • Alternatives • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Fiscal 2016 Highlights
FISCAL 2016 HIGHLIGHTS Continued progress toward stated objectives • Highlights: • 30% improvement in mutual fund flows compared to 2015 • Strong fundraising progress for the Essential Infrastructure Fund • Demand for Global products remains intact • QuantShares ETF launch on January 30th • Adjusted
Slide 6: Retail Business Review
RETAIL BUSINESS REVIEW Continued improvement in mutual fund flows • Mutual fund net redemptions improved by 30% despite industry weakness • Good performance in key categories will drive continued improvement • Product innovation utilizing capabilities around risk and low volatility 6
Slide 7: Investment Teams & Performance
INVESTMENT TEAMS & PERFORMANCE Performance improvement on track to meet long term target • AUM above median: 1 year 39%, 3 years 37% • Consistent long-term performance in key funds • Portfolios positioned to meet client concerns around risk and volatility 7
Slide 8: Institutional Business Review & Pipeline
INSTITUTIONAL BUSINESS REVIEW & PIPELINE ($ millions) Gross Sales Commitments 60 Pipeline • Net sales include strategic win from a Q3 Redemption Notifications - Q3 Net Pipeline 60 prominent Asian investor Gross Sales from Q3 Pipeline 60 • Global performance remains strong, as does client demand Acti
Slide 9: Summary of Financial Results
SUMMARY OF FINANCIAL RESULTS Sequential Quarter Year Over Year Fav / Fav / ($ millions, except per share amounts) Q4 '16 Q3 '16 2016 2015 (Unfav) (Unfav) Revenue 104.8 109.4 (4.2%) 428.7 449.6 (4.6%) SG&A 43.2 52.4 17.6% 194.9 188.7 (3.3%) Continuing Operations EBITDA 30.7 25.3 21.3% 109.5 127.2 (13
Slide 10: Financial Results – BPS Detail
FINANCIAL RESULTS – BPS DETAIL EBITDA yield increase reflects lower expenses (bps of average AUM) Q4 ‘16 TTM Average AUM ($B)1 33.6 32.9 Average Retail 17.8 17.5 Average Institutional and HNW 15.8 15.4 Revenue (bps)2 121 123 Less: Trailer Fees (bps) 37 37 3 SG&A (bps) 58 61 3 EBITDA (bps) 26 25 (1)
Slide 11: Free Cash Flow
FREE CASH FLOW Dividend payout ratio remains within an acceptable range Free Cash Flow Dividend % of Free Cash Flow (Payout Ratio) 25 160% 20 21.2 140% 18.6 120% ($ millions) 15 16.4 100% 12.9 80% 10 11.1 60% 57% 40% 5 49% 34% 38% 20% 30% - 0% Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 11
Slide 12: 2017 Focus & Priorities
2017 FOCUS & PRIORITIES Continue work on improved investment performance • Key Execution Points • Continue to drive investment performance • Improve sales in retail and institutional • Leverage the AGFiQ platform 12
Slide 13: Questions
QUESTIONS