Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q2 2018 Earnings Presentation
14 slides from Agf Management Limited Class B's earnings presentation, Jun 27, 2018
Slide 1: AGF Management Limited Earnings Conference Call Q2 2018
AGF Management Limited Earnings Conference Call Second Quarter 2018 June 27th, 2018
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward looking information is provided as of June 27th, 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 securiti
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 2nd Quarter of Fiscal 2018 • Business Updates – Retail – Investment Management – Institutional – Alternatives • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Q2 2018 Highlights
Q2 2018 Highlights Continued progress toward stated objectives AUM of 2nd consecutive Institutional $38.5 billion quarter of retail net sales of with growth across all lines of business mutual fund net sales $1.2 billion Achieved Best Advertising Alternatives substantial Campaign Award platform reac
Slide 6: Line of Business Performance
Line of Business Performance Growth across all lines of business ($ millions) Q2 2017 Q2 2018 Change Mutual funds 18,884 19,118 1% Institutional, Sub Advisory and ETF 11,336 12,823 13% Private Client 5,323 5,521 4% Alternatives 902 1,009 12% Total 36,445 38,471 6% 6
Slide 7: Retail Business Review
Retail Business Review1 Retail mutual fund net sales of $85 million in Q2 20181 Gross Sales Improvement1,2 AGF Mutual Fund Net Sales ($M)1 Q2 2018 vs. Q2 2017 85 21% (107) (6%) (291) Industry AGF Q2 2016 Q2 2017 Q2 2018 (1) AGF gross and net sales adjusted to exclude non-recurring institutional tran
Slide 8: Investment Management: Current Environment Favours Momentum
Investment Management Current Environment Favours Momentum Global Factor Returns (%)1 Trailing Earnings Yield (%)2 8 60 6 40 4 20 2 0 0 -2 -20 06/17 09/17 12/17 03/18 06/18 Beta Earnings Yield Momentum Dividend Yield (%)2 Low Volatility (%)2 40 50 20 20 -10 0 -40 -20 -70 -40 -100 (1) One year global
Slide 9: AGF Global Equity Strategy Performance Consistency
Investment Management AGF Global Equity Strategy Performance Consistency1 January 1, 2000 to March 31, 2018 Consistency of outperformance relative to Consistency of outperformance relative to benchmark over the last 18 years2,3 a universe of global equity managers4 98% 100% Top 26% 19% 20% (61/62) (
Slide 10: Financial Results – Summary
Financial Results – Summary Sequential Quarter Year Over Year Fav / Fav / ($ millions, except per share amounts) Q2-18 Q1-18 Q2-18 Q2-17 Unfav Unfav Revenue 114.2 110.9 3.0% 114.2 117.1 (2.5%) SG&A 60.4 53.1 (13.7%) 60.4 54.9 (10.0%) 1 SG&A (Adjusted) 55.2 53.1 (4.0%) 55.2 54.9 (0.5%) Continuing Ope
Slide 11: Financial Results – BPS Detail
Financial Results – BPS Detail (bps of average AUM) Q2-18 TTM Average AUM ($B)1 36.4 35.6 Average Mutual Fund 19.0 18.8 Average Institutional, Sub-Advisory, ETFs & 17.4 16.8 Private Client Revenue (bps)2 116 118 Less: Trailer Fees (bps) 35 36 SG&A (bps)3 61 61 EBITDA (bps)2,3 20 22 (1) Average AUM e
Slide 12: Capital & Liquidity
Capital & Liquidity Dividend payout ratio, excluding one-time items, of 55% on a trailing twelve months basis 400% 20 350% 300% 15 16.4 250% ($ millions) 200% 12.9 10 150% 10.4 10.5 100% 107% 5 5.9 50% 60% 49% 60% 38% 0% - -50% Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Adjusted free cash flow Dividend % of adju
Slide 13: 2018 Focus & Priorities
2018 Focus & Priorities Maintain Above median consistent Grow sub- Leverage the investment net sales in advisory and AGFiQ performance retail mutual institutional platform funds 13
Slide 14: Thank You!
Thank You! To learn more about AGF’s history visit: www.agf.com/ca/en/about- agf/our-story