Agf Management Limited Class B · TSX:AGF.B
Agf Management Limited Class B — Q2 2016 Earnings Presentation
13 slides from Agf Management Limited Class B's earnings presentation, Jun 29, 2016
Slide 1: AGF Management Limited Earnings Conference Call Second Quarter 2016
AGF MANAGEMENT LIMITED EARNINGS CONFERENCE CALL SECOND QUARTER 2016 JUNE 29TH, 2016
Slide 2: Caution Regarding Forward-Looking Statements
CAUTION REGARDING FORWARD-LOOKING STATEMENTS The forward looking information is provided as of June 29th, 2016. 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 • Robert J. Bogart Executive Vice-President & Chief Financial Officer 3
Slide 4: Today's Discussion
TODAY’S DISCUSSION • Highlights of the 2nd Quarter • Business Updates • Retail Business • Investment Management • Institutional Business • Alternatives • Financial Results • Capital & Liquidity • Focus & Priorities 4
Slide 5: Q2 2016 Highlights
Q2 2016 HIGHLIGHTS Continued progress toward stated objectives • Highlights: • AUM increased by 6%; improvement across all lines of business • AUM above median: 1 year 50%, 3 years 54% • 31% improvement in mutual fund flows compared to Q2 2015 • Completed first close of Essential Infrastructure Fund
Slide 6: Retail Business Review
RETAIL BUSINESS REVIEW Continued improvement in mutual fund flows • Mutual fund net redemptions improved by 31% despite market volatility • Strong gross sales through strategic distribution partnerships • Good performance in key categories coupled with new product development will drive continued im
Slide 7: Investment Teams & Performance
INVESTMENT TEAMS & PERFORMANCE Investment performance improvement continues • AUM above median: 1 year 50%, 3 years 54% • Consistent performance in key funds • Strong performance relative to peers • Fewer teams with better resources will continue to drive improvement 7
Slide 8: Institutional Business Review & Pipeline
INSTITUTIONAL BUSINESS REVIEW & PIPELINE ($ millions) Gross Sales Commitments 480 Pipeline Q1 Redemption Notifications (250) • Essential Infrastructure Fund final close Q1 Net Pipeline 230 on track for year end Gross Sales from Q1 Pipeline 473 • Significant Global Core win in Q2 Redemptions from Q1
Slide 9: Summary of Financial Results
SUMMARY OF FINANCIAL RESULTS Sequential Quarter Quarter Over Quarter Fav / Fav / ($ millions, except per share amounts) Q2 '16 Q1 '16 Q2 '16 Q2 '15 (Unfav) (Unfav) Revenue 111.1 103.3 7.6% 111.1 117.1 (5.1%) SG&A 54.0 45.3 (19.2%) 54.0 46.6 (15.9%) Continuing Operations EBITDA 26.2 27.3 (4.0%) 26.2
Slide 10: Financial Results – BPS Detail
FINANCIAL RESULTS – BPS DETAIL EBITDA yield decline reflects lower average AUM (bps of average AUM) Q2-16 TTM Average AUM ($B)1 32.3 33.1 Average Retail 17.2 17.9 Average Institutional and HNW 15.1 15.2 Revenue (bps)2 128 123 Less: Trailer Fees (bps) 37 37 3 SG&A (bps) 66 58 3 EBITDA (bps) 25 28 (1)
Slide 11: Free Cash Flow
FREE CASH FLOW Dividend payout ratio remains within an acceptable range Free Cash Flow Dividend % of Free Cash Flow (Payout Ratio) 20 160% 18.6 140% 16.8 17.0 16.4 120% ($ millions) 100% 10 11.1 80% 57% 60% 39% 38% 34% 38% 40% 20% - 0% Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 11
Slide 12: 2016 Focus & Priorities
2016 FOCUS & PRIORITIES Build on improved investment performance • Key Execution Points • Sustain investment performance improvement • Drive gross sales through retail product development and strategic partnerships • Integrate FFCM and leverage new product capability • Continue the development of th
Slide 13: Questions
QUESTIONS