AGF Management (TSE:AGF.B) executives highlighted fiscal 2025 asset growth, improved sales momentum, and higher profitability during the company’s fourth-quarter earnings call, while also discussing expense guidance, capital returns, and updates on its private markets and institutional businesses.
Assets and sales momentum
CEO Judy Goldring said AGF ended the fourth quarter with total assets under management (AUM) and fee-earning assets above CAD 60 billion, up 13% from a year earlier. Within AGF Investments, mutual fund AUM was CAD 35 billion, up 14% year-over-year, which management said outpaced the Canadian mutual fund industry’s 12% growth.
During the Q&A, Tsang said quarter-to-date retail flows were running at CAD 90 million in net positive sales and added that the company was “cautiously optimistic” about the RSP season.
ETF and SMA growth, and institutional updates
AGF’s ETF and separately managed account (SMA) business remained a key growth driver. Goldring said ETF and SMA AUM increased to roughly CAD 4.1 billion, with year-over-year growth cited at 63% (and also described as a 68% compounded growth rate over the last two years). She attributed momentum to investment performance and distribution work to add platforms in the U.S., Canada, and Asia. She also noted the company expanded sales and marketing efforts in Canada and the U.S. as part of its capital plan.
On institutional assets, management disclosed that subsequent to year-end it received a redemption notice for CAD 700 million, driven by a “government-mandated change” in the client’s investment oversight process. Tsang clarified during Q&A that this CAD 700 million redemption was completed in December 2025 and was included in the company’s disclosed timing.
Tsang also addressed a previously disclosed institutional redemption of CAD 500 million, saying that client was expected to redeem “by the end of this month” and that it had not come through in AGF’s fourth-quarter numbers. He added that the company was not anticipating additional institutional redemptions beyond those disclosed.
Investment performance and CIO search
Goldring said AGF’s mutual fund investment performance “continues to be strong,” describing results in percentile rankings versus peers (with first percentile as best). She cited performance in the 43rd percentile over one year, 52nd percentile over three years, and 41st percentile over five years, adding that more than half of funds were outperforming peers over three- and five-year periods.
Management said the company continues a global search for a permanent chief investment officer. Goldring called the CIO hiring process “dynamic and active,” noting it began around August or September and that the company would share details when available. In the interim, Goldring and Tsang expressed confidence in the “Office of the CIO” structure and interim CIO David Stonehouse.
Financial results, expenses, and 2026 guidance
For fiscal 2025, AGF reported adjusted EBITDA of CAD 186 million, up 12% year-over-year, and adjusted diluted EPS of CAD 1.93, up 16% from the prior year. For the fourth quarter, AGF reported adjusted EBITDA of CAD 52 million and adjusted EPS of CAD 0.62. Tsang said fourth-quarter adjusted EBITDA increased sequentially by CAD 6 million, mainly due to higher income from long-term investments.
Adjusted SG&A expense was CAD 68 million in the quarter, up CAD 7 million from the prior quarter, which Tsang attributed to timing of non-compensation expenses and higher performance-based compensation that is finalized in Q4. For the full year, AGF’s adjusted SG&A was CAD 252 million, exceeding its CAD 240 million guidance, primarily due to higher performance-based compensation. Management said it viewed that compensation level as appropriate given improved business performance and strategic execution.
For fiscal 2026, AGF guided to adjusted SG&A of CAD 256 million, noting the guidance reflects a reset of performance-based compensation to baseline levels and excludes acquisition-related costs.
On profitability metrics, Tsang discussed an EBITDA yield view that excludes AGF Capital Partners and certain other items, stating the EBITDA yield was 24 basis points for the quarter, broadly consistent with the prior quarter and trailing 12 months.
Capital position, shareholder returns, and business updates
AGF ended the quarter with CAD 449 million in short- and long-term investments, net cash of CAD 6 million, and CAD 208 million remaining on a credit facility with a maximum of CAD 250 million. The company paid a CAD 0.125 per share dividend for Q4 2025.
Tsang said trailing 12-month free cash flow was CAD 118 million, and dividends represented 27% of that amount. Over the same period, AGF returned CAD 56 million to shareholders, consisting of CAD 31 million in dividends and CAD 25 million in share buybacks. AGF repurchased more than 500,000 shares in the quarter and 2 million shares for the full year under its normal course issuer bid (NCIB). Management said capital allocation would remain balanced between returning capital and investing in growth.
In the Q&A, AGF Capital Partners head Ash Lawrence provided an update on the Kensington Private Equity Fund, which suspended redemptions in late September. Lawrence said the suspension was intended to avoid forced sales and discounted pricing while liquidity is generated in an orderly way. He said the suspension has “minimal impact” on AGF’s financials, though a 10 basis points concession was given on the fee base during the suspension. He also noted that prior redemptions in the first half of last year had affected AUM and revenue at Kensington, and that future liquidity actions could create valuation impacts that would flow through to AUM and revenue.
Lawrence also discussed AGF’s relationship with New Holland, noting AGF’s first option window to exercise conversion opens in February. He said AGF has been pleased with the partnership and noted New Holland’s AUM had grown about 40%, from roughly $5 billion to about $7 billion, since AGF’s initial transaction. Lawrence said AGF was actively evaluating conversion of its debt and any additional ownership exercise, with “more to come” in the first half of the year.
About AGF Management (TSE:AGF.B)
AGF Management is a Canadian-based asset manager with operations and investments in Canada, the United States, the United Kingdom, Ireland, and Asia. At the end of May 2022, the firm had CAD 40.3 billion in total assets under management. AGF Management’s funds are weighted more heavily toward equities, with just over two thirds of retail AUM being equity related. That said, the company does use fundamental, quantitative and alternative strategies to manages its investment funds. AGF Management has a more meaningful portion of its business tied to institutional clients than its peers, with 26% of AUM derived from institutional and subadvised accounts.
