AGF Management Limited : reports fourth quarter and fiscal 2012 financial results

Fourth Quarter Overview

During the fourth quarter of 2012, the Company recorded net income from continuing operations of $13.0 million, compared to $18.0 million during the same period in 2011. Revenue for the fourth quarter ended November 30, 2012 decreased to $125.0 million, compared to $138.2 million in the same period in 2011. As a result of lower revenue, EBITDA decreased 11.2% in the fourth quarter of 2012, over the respective 2011 period.

Diluted earnings per share from continuing operations was $0.14 per share in the three months ended November 30, 2012, as compared to $0.19 per share for the same period in 2011.

"We recognize that 2012 posed clear challenges for the investment management industry and AGF," said Blake C. Goldring, Chairman and CEO of AGF Management Limited. "We have significantly reinvested in our global investment management platform to enhance our overall investment performance while building out our Emerging Markets and Global capabilities and solidifying our key distribution relationships. The disposition of AGF Trust marked our commitment to our core business of investment management. Finally, for our valued shareholders, we continued our history of dividend growth and used capital from the sale of AGF Trust to repurchase stock under our current normal course issuer bid."

2012 Operational Highlights

As part of AGF's commitment to deliver innovative products to investors, the company launched the AGF Floating Rate Income Fund in Canada managed by Eaton Vance. In working partnership, the Eaton Vance Global Natural Resources Fund in the United States was also launched, sub advised by AGF. Additionally, AGF won Canadian Lipper Awards for the best three-year and five-year returns in the Emerging Markets Equity category and its AGF Global Resources Class won best five-year return in National Resources Equity category. AGF was also awarded a natural resources mandate by China's National Council for Social Security Fund, which recognizes AGF's disciplined investment process and proven track record in managing resource portfolios.

AGF added to its investment capabilities by hiring five talented investment professionals to strengthen the Global platform and acquired Robitaille Asset Management to enhance our position in the Canadian equity-income space. Other significant investments in 2012 were made in the investment management platform and operational capabilities to support our investment professionals and our global distribution footprint.

"As we move into 2013, we remain focussed on offering retail and institutional investors the best investment management products and solutions across a truly global platform," added Mr. Goldring.

2012 Financial Results Summary

Total assets under management (AUM) decreased 14.9% from $46.0 billion at November 30, 2011 to $39.2 billion at November 30, 2012. The decrease in AUM was a result of institutional and sub-advisory accounts net redemptions.

Consolidated revenue from continuing operations decreased 12.9% to $510.2 million, compared to the same period in 2011, reflecting lower AUM levels.

Diluted earnings per share (EPS) from continuing operations for the year ended November 30, 2012 was $0.29 per share, compared to $0.80 per share in 2011. Adjusted EPS from continuing operations was $0.63 per share for fiscal 2012, compared to $1.05 per share for the same period in 2011.

Dividends paid to shareholders increased by 1.0% to $1.08 per share on an annual basis from $1.07 in 2011. In fiscal 2012, AGF repurchased a total of 7,697,609 shares for $88.7 million. In total, AGF returned $188 million of free cash flow from operations to shareholders through a combination of cash dividends and share buybacks.

Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased to $189.0 million, compared to $238.0 million in 2011. EBITDA margin decreased to 37.0%, compared to 40.6% in 2011.

Net income from continuing operations decreased to $27.7 million, compared to $76.6 million in 2011. One-time items before tax of $25.1 million included impairment charges of $22.1 million and a restructuring charge of $2.2 million related to the realignment of costs due to the sale of AGF Trust. In addition, the company recognized a $10.6 million charge related to the impact of a tax rate change.

Fiscal 2012 Financial Statement and Notes

Fiscal 2012 Management Discussion and Analysis

Conference Call

AGF will host a conference call to review its earnings results today at 11 a.m. ET. The live audio webcast with supporting materials will be available in the Investor Relations section of AGF's website at www.agf.com or at http://www.media-server.com/m/p/9qzs6wqe. Alternatively, the call can be accessed toll-free in North America by dialling 1-800-510-0219 (Passcode #: 13186391). A complete archive of this discussion along with supporting materials will be available at the same webcast address within 24 hours of the end of the conference call.

ABOUT AGF MANAGEMENT LIMITED

AGF Management Limited is one of Canada's premier independent investment management firms with offices across Canada and subsidiaries around the world. AGF's products include a diversified family of award-winning mutual funds, mutual fund wrap programs and pooled funds. AGF also manages assets on behalf of institutional investors including pension plans, foundations and endowments as well as for private clients. With over $39 billion in total assets under management, AGF serves more than one million investors. AGF trades on the Toronto Stock Exchange under the symbol AGF.B.

AGF Management Limited shareholders and analysts, please contact:

Robert J. Bogart
Executive Vice-President and Chief Financial Officer
416-865-4264, [e-mail]

Michael Clabby
Vice-President, Investor Relations and Corporate Development
416-815-6275, [e-mail]

Caution Regarding Forward-Looking Statements

This release includes forward-looking statements. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes' or negative versions thereof and similar expressions, or future or conditional verbs such as 'may,' 'will,' 'should,' 'would' and 'could.' Forward-looking statements are based on certain factors and assumptions, including expected growth, results of operations, economic factors, business prospects, business performance and opportunities. While the company considers these factors and assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward-looking statements are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements due to, but not limited to, important risk factors such as level of assets under management, volume of sales and redemptions of investment products, performance of investment funds and of investment managers and advisors, competitive fee levels for investment management products and administration, and competitive dealer compensation levels and cost efficiency in our investment management operations, as well as interest and foreign-exchange rates, taxation, changes in government regulations, unexpected judicial or regulatory proceedings, and the company's ability to complete strategic transactions and integrate acquisitions. The company cautions that the foregoing list is not exhaustive. The reader is cautioned to consider these and other factors carefully and not place undue reliance on forward-looking statements. Forward-looking statements are given only as at the date of this release and other than specifically required by applicable laws, the company is under no obligation (and expressly disclaims any such obligation) to update or alter the forward-looking statements, whether as a result of new information, future events or otherwise. Additional risks and uncertainties can be found in our MD&A for the fiscal year ended November 30, 2011 under the headings "Caution Regarding Forward-Looking Statements" and "Risk Factors and Management of Risk" and in our other filings with Canadian securities regulatory authorities.