AGF Management Sees Lower Profit as Higher Overhead Expenses Erode Margins: AGF Management Profit Slips, Misses Forecasts

By Freeman, Sunny | The Canadian Press, January 25, 2012 | Go to article overview

AGF Management Sees Lower Profit as Higher Overhead Expenses Erode Margins: AGF Management Profit Slips, Misses Forecasts


Freeman, Sunny, The Canadian Press


TORONTO - AGF Management Ltd. (TSX:AGF.B) reported a 30 per cent decline in fourth quarter profit as the value of its portfolio shrank over stock market uncertainty, a trend it doesn't expect to stabilize any time soon.

The Toronto-based mutual fund company's shares sank 5.5 per cent or 93 cents to $15.96 Wednesday on the Toronto Stock Exchange after it said higher expenses and lower investment returns hit the bottom line.

"It will continue to be a challenging market, but we're not going to make any excuses for our performance, we can and will do better," Blake Goldring, chairman and CEO of AGF said on a conference call with investors Wednesday.

AGF reported net income for the three months ended Nov. 30 dropped to $21.9 million from $30.9 million, or 23 cents per share compared to 34 cents per share a year earlier.

Earnings per share missed analysts estimates by about seven cents.

"Volatility in the second half of 2011 shook investor confidence and investors pulled money from equity funds and moved into money markets and cash, onto the sidelines," Goldring said.

The downward trend in the stock market not only hurts the value of AGF's investments, but when investors pull their money out, it reduces revenue earned on fees that would be paid by its clients.

A lower interest rate and lower loan balances also hit the company's net interest income, which fell about 11 per cent from the quarter a year before.

AGF's overall revenue grew to $157.8 million from $155.9 million.

But it also booked one-time costs associated with the integration of Acuity Funds Ltd. acquired last year and saw an increase in net redemptions in its retail business.

Goldring said global financial challenges, such as debt crises in Europe and the United States, continue to rock stock markets but added that he is seeing signs of a recovery on North American markets as risk tolerance improves along with a rosier employment picture and housing outlook. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

AGF Management Sees Lower Profit as Higher Overhead Expenses Erode Margins: AGF Management Profit Slips, Misses Forecasts
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.