The following is a summary of the AGF Management Limited (AGFMF) Q1 2024 Earnings Call Transcript:
Financial Performance:
AGF Management Limited reported a 7% increase in AUM to $45 billion from the previous year.
The balance sheet shows $320 million invested short and long term, and $110 million available on the credit facility.
The company declared an increased dividend of $0.115 per share for Q1 2024, marking the fourth year of dividend growth.
Adjusted EBITDA for Q1 2024 increased significantly to $49.5 million, up from Q4 2023 and Q1 2023.
Adjusted SG&A expenses were $53.5 million, a slight increase from Q4 2023 and Q1 2023.
Despite strong growth, there was a reported mutual fund net redemption of $125 million for the quarter.
Business Progress:
Strategic investment was made in New Holland Capital, adding over $5 billion in AUM.
Acquisition of 51% of Kensington Capital Partners increases total AUM by an additional $4.8 billion.
Private Wealth AUM increased 7%, reaching $7.8 billion year-over-year.
AGF's future plans include diversification, returning capital to shareholders through dividends and share buybacks, and generating sustainable income streams.
Significant SMA growth, up 87% YoY in Canada, is expected to offset the reported redemptions.
Post-acquisition, AGF plans to fully reflect Kensington's revenue and SG&A figures in its accounts due to its 51% ownership.
Future M&A focus will be on U.S. based private credit and real estate, both credit and equity.
AGF indicates a strategic shift towards a larger allocation in alternative investments, an area they anticipate significant growth in.
More details: AGF MANAGEMENT LTD IR
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