Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q3 2018 Earnings Presentation
13 slides from Agf Management Limited Class B's earnings presentation, Sep 26, 2018
Slide 1: AGF Management Limited Earnings Conference Call Third Quarter 2018
AGF Management Limited Earnings Conference Call Third Quarter 2018 September 26th , 2018
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements The forward looking information is provided as of September 26th, 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 sec
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 3rd Quarter of Fiscal 2018 • Business Updates – Retail – Investment Management – Institutional – Alternatives • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Q3 2018 Highlights
Q3 2018 Highlights Continued progress toward stated objectives AUM of Year to date Year to date $38.8 billion positive net sales positive net sales with growth across in retail mutual in institutional all lines of business funds channel Adjusted diluted Significant strategic Achieved final sub-advis
Slide 6: Line of Business Performance
Line of Business Performance Growth across all lines of business ($ millions) Q3 2017 Q3 2018 Change Mutual funds 18,165 19,401 7% Institutional, Sub Advisory and ETF 10,665 12,694 19 % Private Client 5,221 5,714 9% Alternatives 902 1,009 12 % Total 34,953 38,818 11 % 6
Slide 7: Retail Business Review
Retail Business Review1 Gross Sales Improvement2 AGF Mutual Fund Net Sales ($M)1 YTD 2018 vs. YTD 2017 26% 73 (360) 1% (899) Industry AGF 2016 YTD 2017 YTD 2018 YTD (1) AGF gross and net sales adjusted to exclude non-recurring institutional transactions in excess of $5 million. (2) Industry gross sa
Slide 8: Investment Management
Investment Management Current Environment Favours Momentum 8 Global Factor Returns (%)1 Trailing Earnings Yield (%)2 50 6 40 30 4 20 10 2 0 (10) 0 (20) (30) (2) (40) 9/2017 11/2017 1/2018 3/2018 6/2018 8/2018 Beta Earnings Yield Momentum Dividend Yield (%)2 Low Volatility (%)2 40 40 30 20 20 0 10 (2
Slide 9: Financial Results – Summary
Financial Results – Summary Sequential Quarter Year Over Year Fav / Fav / ($ millions, except per share amounts) Q3-18 Q2-18 Q3-18 Q3-17 Unfav Unfav Revenue 116.5 114.2 2.0% 116.5 110.3 5.6% SG&A 51.0 60.4 15.6% 51.0 49.6 (2.8%) 1 SG&A (Adjusted) 51.0 55.2 7.6% 51.0 49.6 (2.8%) Continuing Operations
Slide 10: Financial Results – BPS Detail
Financial Results – BPS Detail (bps of average AUM) Q3-18 TTM Average AUM ($B)1 37.5 36.3 Average Mutual Fund 19.3 19.0 Average Institutional, Sub-Advisory, ETFs & 18.3 17.3 Private Client Revenue (bps)2 112 116 Less: Trailer Fees (bps) 34 35 SG&A (bps)3 55 60 EBITDA (bps)2,3 23 21 (1) Average AUM e
Slide 11: Capital & Liquidity
Capital & Liquidity Dividend payout ratio, excluding one-time items, of 60% on a trailing twelve months basis 400% 20 350% 300% 15 16.4 250% ($ millions) 200% 12.9 12.8 10 150% 10.5 100% 107% 5 5.9 50% 49% 60% 49% 38% 0% - -50% Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Adjusted free cash flow Dividend % of adju
Slide 12: 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 12
Slide 13: Thank You!
Thank You! To learn more about AGF’s history visit: www.agf.com/ca/en/about- agf/our-story