Company Reports

AGF reported fiscal third-quarter adjusted net revenue of CAD 113 million, down sequentially from CAD 127 million but up from CAD 108 million last year. Adjusted EBITDA of CAD 49 million grew 6% year over year but declined 24% from an elevated second quarter. Shares dipped 8% in intraday trading.

Founded in 1957, AGF Management began as a mutual fund company offering retail investors in Canada greater access to the US stock market through its American Growth Fund. Retail equity mutual fund assets are still the firm's bread and butter and make up the majority of AGF's assets. Although the firm has made some acquisitions and invested in partnerships, we believe that organic growth in assets under management continues to be its main focus.

AGF Management reported fiscal second-quarter adjusted net revenue of CAD 127 million, up from CAD 95 million in the first quarter. Adjusted EBITDA was CAD 64 million, up from CAD 30 million in the first quarter.

Founded in 1957, AGF Management began as a mutual fund company offering retail investors in Canada greater access to the US stock market through its American Growth Fund. Retail equity mutual fund assets are still the firm's bread and butter and make up the majority of AGF's assets. Although the firm has made some acquisitions and invested in partnerships, we believe that organic growth in assets under management continues to be its main focus.

AGF reported fiscal-first-quarter 2026-ending assets under management of CAD 58.3 billion, which was virtually flat sequentially. In addition, the firm took a CAD 17 million noncash write-down on some long-term investments. Shares traded 10% lower during intraday trading on April 14.

AGF finished its fiscal 2025 on a high note with fourth-quarter ending AUM of CAD 60.4 billion, gross revenue up 11%, and adjusted net fees up 13%. Expenses were well controlled with adjusted SG&A expenses up only 3% and thus adjusted EBITDA rose 32%. Shares popped 5% in intraday trading Jan. 27.

Founded in 1957, AGF Management began as a mutual fund company offering retail investors in Canada greater access to the US stock market, with the company standing for its American Growth Fund. Retail equity mutual fund assets are still the firm's bread and butter and make up the majority of AGF's assets. Although the firm has made some acquisitions and invested in partnerships, we believe that organic AUM growth has been and continues to be the main focus of the company.

AGF Management finished August 2025 with CAD 56.8 billion in consolidated assets under management, or AUM, up 6% sequentially and 14% from the year-ago quarter. Net management, advisory, and administration fees were up 6% sequentially and 13% year over year to CAD 88.8 million.

Founded in 1957, AGF Management began as a mutual fund company offering retail investors in Canada greater access to the US stock market, with the company standing for its American Growth Fund. Retail equity mutual fund assets are still the firm's bread and butter and make up the majority of AGF's assets. Although the firm has made some acquisitions and invested in partnerships, we believe that organic AUM growth has been and continues to be the main focus of the company.

We are transferring coverage of AGF Management, an independent Canadian asset manager, to a new analyst.

While AGF Management's struggles are far from over, we believe the firm is on the right track. Long bouts of investment underperformance and increased competition have weakened the firm's competitive position in the Canadian market during the past decade. The company also relies heavily on third-party distributors than its peers, with the Big Six banks and insurance companies (which handle the bulk of fund distribution in Canada) looking to expand their own fund manufacturing operations. While embedded commissions endure, we expect the growth of fee-based accounts and increased transparency around fees and performance to put pressure on active managers with higher-than-average fees and below-average performance.

AGF ended June 2025 with CAD 55.0 billion in consolidated assets under management, up from CAD 53.5 billion at the end of May 2025. We expect flows and market conditions to lift AUM levels closer to CAD 60 billion over the next 18 months.

AGF ended May 2025 with CAD 53.5 billion in consolidated assets under management. While average assets were up 10.0% year over year, second-quarter revenue rose just 1.9%. Even so, the firm's second-quarter adjusted EBITDA margin of 29.3% was up 130 basis points year over year.

While AGF Management's struggles are far from over, we believe the firm is on the right track. Long bouts of investment underperformance and increased competition have weakened the firm's competitive position in the Canadian market the past decade. The company also relies heavily on third-party distributors than its peers, with the Big Six banks and insurance companies (which handle the bulk of fund distribution in Canada) looking to expand their own fund manufacturing operations. While embedded commissions endure, we expect the growth of fee-based accounts and increased transparency around fees and performance to put pressure on active managers with higher-than-average fees and below-average performance.

AGF closed out February 2025 with CAD 53.8 billion in consolidated assets under management, or AUM. While average AUM was up 23.1% year over year, a declining fee rate left first-quarter revenue up just 9.1%. First-quarter adjusted EBITDA margins of 43.0% were down 510 basis points year over year.

There was little in no-moat AGF Management's fiscal fourth-quarter results that would alter our long-term view of the firm. We are leaving our CAD 11.50 fair value estimate in place. We view the shares as slightly undervalued.

We’ve increased our fair value estimate for no-moat-rated AGF Management to CAD 11.50 per share from CAD 9.50 to account for revised near-term expectations for assets under management, or AUM, revenue, and profitability since our last update. AGF closed out the third quarter of fiscal 2024 with CAD 49.7 billion in consolidated AUM, up 17.6% year over year, aided in a large part by the acquisition of CAD 2.6 billion in AUM as part of the Kensington Capital Partners deal (which closed in March 2024). Since that time, the company has benefited from improved market conditions that lifted consolidated AUM to CAD 51.5 billion at the end of October 2024.

While AGF Management's struggles are far from over, we believe the firm is on the right track. Long bouts of investment underperformance and increased competition have weakened the firm's competitive position in the Canadian market the past decade. The company also relies heavily on third-party distributors than its peers, with the Big Six banks and insurance companies (which handle the bulk of fund distribution in Canada) looking to expand their own fund manufacturing operations. While embedded commissions endure, we expect the growth of fee-based accounts and increased transparency around fees and performance to put pressure on active managers with higher-than-average fees and below-average performance.

There was little in no-moat AGF Management's fiscal third-quarter results that would alter our long-term view of the firm. We are leaving our CAD 9.50 per share fair value estimate in place. We view the shares as being slightly to modestly undervalued.

While AGF Management's struggles are far from over, we believe the firm is on the right track. Long bouts of investment underperformance and increased competition have weakened the firm's competitive position in the Canadian market over the past decade. The company also relies more heavily on third-party distributors than its peers, with the Big Six banks and insurance companies (which handle the bulk of fund distribution in Canada) looking to expand their own fund manufacturing operations. While embedded commissions have endured, we expect the growth of fee-based accounts and increased transparency around fees and performance to put pressure on active managers with higher-than-average fees and below-average performance.