AGF MANAGEMENT LIMITED
Scotia Capital Financials Summit
Tuesday September 14, 2004


Blake C. Goldring, CFA
President and ...
CORPORATE PROFILE — BUSINESS SEGMENTS

   Investment Management                        AGF Trust                 Fund Admi...
COMPETITIVE ENVIRONMENT
CHALLENGING CYCLICAL FACTORS

2004 YTD Industry Net Sales*
                                       ...
STRATEGIC PRIORITIES

• Reinforce investment management excellence
• Build a client centric organization focused on
  mult...
LONG-TERM PERFORMANCE TELLS A STORY:
STRENGTH IN NUMBERS
Fund Performance Comparison — July 31, 2004
% of Total Assets Abo...
INVESTMENT MANAGEMENT — TACTICS


1. Clarify and articulate each fund’s philosophy and style

2. Investigate sub brand str...
AGF MANAGEMENT LIMITED
Randy Ambrosie
Executive Vice-President,
Sales and Marketing




U.S. MUTUAL FUND COMPANIES BY
DIST...
PERCENT OF A TYPICAL CANADIAN ADVISOR’S SALES
BY FUND FAMILY
                                      0   10         20   30 ...
CLIENT CENTRIC — SALES TACTICS


                       Sales & Marketing



                                        Custo...
STRATEGIC ACQUISITIONS —
AGF PRIVATE INVESTMENT MANAGEMENT
Targets:
• 50% cash flow margins
• 15-20% ROI                  ...
SUPPORT BUSINESSES — AGF TRUST

AGF TRUST
• Leverages financial advisor offerings through loans,
  mortgages and GICs
• Co...
SUPPORT BUSINESSES




• Administration and/or technology solutions for 28 million
  investment fund accounts with $210 bi...
STRENGTH IN KEY MEASURES — BUSINESS GROWTH

                                EBITDA and Cash Flow Growth
$350,000
         ...
DIVIDEND GROWTH —
A PRIORITY USE OF FREE CASH FLOW

                          Annual Dividends Paid Per Share*

$0.50

$0....
FORWARD LOOKING INFORMATION

This presentation contains certain forward-looking
statements that are made based on manageme...
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Agf Presentation Desprotegido3

  1. 1. AGF MANAGEMENT LIMITED Scotia Capital Financials Summit Tuesday September 14, 2004 Blake C. Goldring, CFA President and Chief Executive Officer Randy Ambrosie Executive Vice-President, Sales and Marketing AGF: A GLOBAL INVESTMENT MANAGEMENT COMPANY Established in 1957 Market capitalization: $1.6 billion Total assets under management: $31.1 billion Dividend yield: 2.51% August 31, 2004
  2. 2. CORPORATE PROFILE — BUSINESS SEGMENTS Investment Management AGF Trust Fund Administration AGF Funds Inc. Unisen Inc. Top supplier to advisors of loans, AGF PIM mortgages and GICs Investmaster AGF Asset Management Asia – Singapore AGF International Advisors Co. Ltd. – Dublin Business segment share of pre-tax income Investment AGF Trust and Management Fund Administration 95% 5% Fiscal year to date — 2004 COMPETITIVE ENVIRONMENT MUTUAL FUND INDUSTRY LIFE CYCLE • Encourage rival exit— invest to extend market • Maintenance leadership investments • Cut costs to sustain INDUSTRY • Strong cash flow cash flow • Invest for growth— reinvest modest cash flow • Large investment • Cash flow negative INTRODUCTION GROWTH MATURITY DECLINE
  3. 3. COMPETITIVE ENVIRONMENT CHALLENGING CYCLICAL FACTORS 2004 YTD Industry Net Sales* Mortgage & Real Estate 2% Dividend & Income 31% Balanced 25% Canadian Common Shares 0% US and Foreign Shares 6% Bond & Income 36% Equity funds have been 6% of total industry sales 2004 YTD. * Calendar year to July, 2004 COMPETITIVE ENVIRONMENT EMERGING CYCLICAL TRENDS Fund Type — July, 2004* 1% 2% 1% 100% 11% 23% 80% 14% 43% 17% 60% 14% 40% 74% 59% 20% 41% 0% Industry Banks AGF Equities Balanced Fixed Income Real Estate * IFIC
  4. 4. STRATEGIC PRIORITIES • Reinforce investment management excellence • Build a client centric organization focused on multi-channel distribution • Pursue strategic acquisitions to supplement organic growth • Undertake disciplined review of support entities STRATEGIC PRIORITIES • Reinforce investment management excellence • Build a client centric organization focused on multi-channel distribution • Pursue strategic acquisitions to supplement organic growth • Undertake disciplined review of support entities
  5. 5. LONG-TERM PERFORMANCE TELLS A STORY: STRENGTH IN NUMBERS Fund Performance Comparison — July 31, 2004 % of Total Assets Above Median COMPANY FIVE YEAR TEN YEAR AGF 61% 75% C.I. 49% 28% CIBC 47% 37% Fidelity 70% 73% IG 41% 21% MacKenzie 61% 87% Royal Bank 51% 29% TD Bank 55% 82% AIM/Trimark 92% 54% Source: BellCharts as at July 31, 2004 Top companies by assets OUR CATEGORY KILLER POTENTIAL • AGF Canadian Real Value Fund – We have one of the best value managers in the business in Keith Graham • AGF European Equity Fund – #2 European Equity Fund Manager Worldwide — Mercer Investment Consulting* • AGF International Value Fund – Harris Associates named one of Kiplinger’s top 10 U.S. fund companies • Harmony – “AGF Harmony was the only wrap program that advanced in asset ranking last year . . . and posted the highest year-over-year [AUM] growth rate for 2003”** * Source: Financial Times, in a survey conducted by Mercer Investment Consulting for the three years ended December 31, 2003 ** Source: Investor Economics, Fee-based Report: Winter 2004, HEFW Category
  6. 6. INVESTMENT MANAGEMENT — TACTICS 1. Clarify and articulate each fund’s philosophy and style 2. Investigate sub brand strategy 3. Review our investment disciplines – Extract better performance from our processes STRATEGIC PRIORITIES • Reinforce investment management excellence • Build a client centric organization focused on multi-channel distribution • Pursue strategic acquisitions to supplement organic growth • Undertake disciplined review of support entities
  7. 7. AGF MANAGEMENT LIMITED Randy Ambrosie Executive Vice-President, Sales and Marketing U.S. MUTUAL FUND COMPANIES BY DISTRIBUTION TYPE TOTAL ASSETS CHANGE IN MARKET MAY ’04 ($ billions) SHARE — YTD Industry 4,934 — DISTRIBUTION STRATEGY 1. Vanguard 623.6 0.29% 2. Fidelity 613.0 -0.09% 3. American Funds 534.4 0.62% Direct 4. Franklin Templeton 196.2 -0.06% 5. PIMCO Funds 149.1 0.03% 6. Putnam 119.0 -0.34% 7. T Rowe Price 115.2 0.08% Independent 8. OppenheimerFunds 95.2 -0.01% Advisors 9. Barclays Global 76.9 0.33% 10. Janus 74.5 -0.22% 11. MFS 73.6 -0.12% Vertically 12. AIM Investments 73.5 -0.17% Integrated 13. American Century 71.8 -0.02% 14. Scudder 61.9 -0.10% 15. American Express 60.9 -0.11% Source: Investor Economics
  8. 8. PERCENT OF A TYPICAL CANADIAN ADVISOR’S SALES BY FUND FAMILY 0 10 20 30 40 50 60 these fund families Core supporter of Rank 1 Rank 2 Rank 3 Rank 4 Second-tier supporter of these fund families Rank 5 2003 Rank 6 2003e 2002 Rank 7 2001 Rank 8 2000 Top 4 fund families = On average, advisors 90% of sales in 2003 continue to represent 6.4 fund families. BUT! 84% of sales in 2002 83% of sales in 2001 84% of sales in 2000 BOTTOM UP APPROACH ADVISOR CHANNEL • Increase coverage capabilities – 29 core coverage teams • Rationalize sales team compensation – New assets – Asset retention • Additional coverage – Strategic relationships
  9. 9. CLIENT CENTRIC — SALES TACTICS Sales & Marketing Customer Advisor National Institutional Product Marketing Relationship Sales Accounts Sales Development Services Management STRATEGIC PRIORITIES • Reinforce investment management excellence • Build a client centric organization focused on multi-channel distribution • Pursue strategic acquisitions to supplement organic growth • Undertake disciplined review of support entities
  10. 10. STRATEGIC ACQUISITIONS — AGF PRIVATE INVESTMENT MANAGEMENT Targets: • 50% cash flow margins • 15-20% ROI Montreal •$1.2B in assets •Core Value •Large Cap Vancouver Calgary Toronto Ottawa • $2B in assets • Organic growth • Organic • $1B in assets • Oil & Gas • Leverage PM’s growth • Core Value • Small Cap in Vancouver • Fixed Income STRATEGIC PRIORITIES • Reinforce investment management excellence • Build a client centric organization focused on multi-channel distribution • Pursue strategic acquisitions to supplement organic growth • Undertake disciplined review of support entities
  11. 11. SUPPORT BUSINESSES — AGF TRUST AGF TRUST • Leverages financial advisor offerings through loans, mortgages and GICs • Consumer loans (investment and RSP) rose 16% in Q2 2004 versus Q1 2004 • Net income for Q2 2004 up 160%* over Q2 2003 *Increase does not include one-time gain of $0.6 million in Q2 2004 SUPPORT BUSINESSES — AGF TRUST AGF Trust — Income Before Taxes AGF Trust — Total Assets ($ 000’s) ($ 000’s) 9,000 800,000 8,000 700,000 7,000 CAGR CAGR 6,000 41% 600,000 43% 5,000 500,000 4,000 400,000 3,000 300,000 2,000 1,000 200,000 - 100,000 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 annualized forecast
  12. 12. SUPPORT BUSINESSES • Administration and/or technology solutions for 28 million investment fund accounts with $210 billion in assets • Over 170 client relationships • EBITDA for the fund administration segment for YTD 2004 up 156% over prior year May 31, 2004 YTD 2004 RESULTS — DRIVING MOMENTUM Revenue up 13.4% Cash flow from operations up 26.7% EBITDA up 13.8% Net income up 55.5% Includes $7.1 million tax benefit realized in Q2 2004. Does not include $12.8 million capital gain in Q1 2003.
  13. 13. STRENGTH IN KEY MEASURES — BUSINESS GROWTH EBITDA and Cash Flow Growth $350,000 CAGR: 28% $300,000 $250,000 CAGR: 33% $200,000 $150,000 $100,000 $50,000 $0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year annualized EBITDA Cash Flow From Operations UTILIZATION OF FREE CASH FLOW ($ millions) 160 Debt Reduction 140 Dividends Acquisitions 120 Share Repurchases 100 80 60 40 20 0 2002 2003 2004* *2004 Data • Debt reduction is a forecast • Dividends and share repurchases are YTD annualized • Acquisitions are YTD
  14. 14. DIVIDEND GROWTH — A PRIORITY USE OF FREE CASH FLOW Annual Dividends Paid Per Share* $0.50 $0.40 CAGR 24% $0.30 $0.20 $0.10 $0.00 '97 '98 '99 '00 '01 '02 '03 '04 annualized Dividends increased 37.5% in Q2 2004 to an annual rate of $0.44 per share *Fiscal years ending November 30 RECOGNIZED LONG-TERM OUTPERFORMANCE 20-year performance among the 79 companies in the S&P/TSX composite that have been listed on the TSX for 20 years ending Nov 25 2003. Reported by National Post BUSINESS February 2004.
  15. 15. FORWARD LOOKING INFORMATION This presentation contains certain forward-looking statements that are made based on management’s judgment and expectations but are inherently subject to risks and uncertainties beyond the Corporation’s control. These risks and uncertainties include economic conditions, market fluctuations, interest rate and foreign exchange movements, political events, regulatory change and competitive developments. Actual results may differ materially from those anticipated in the forward-looking statements.

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