AGF Management Limited

AGF reported adjusted diluted EPS of CAD 0.49 and free cash flow of CAD 39 million in Q3 2026. Adjusted EBITDA was CAD 49 million, up CAD 3 million year over year, and SG&A was CAD 64 million, up CAD 2 million year over year. Net management fees were CAD 101 million, up CAD 12 million year over year, and AUM/fee-earning assets were CAD 74 billion, up 31% from a year ago. AGF Investments mutual fund AUM was CAD 37.5 billion, up 14% year over year; AGF Capital Partners AUM and fee-earning assets were CAD 15.7 billion. For capital returns, trailing 12-month free cash flow was CAD 143 million, dividends were 23% of free cash flow, and the company returned CAD 56 million to shareholders in the period. Guidance-wise, management said net management fee rates should decline by 2-3 basis points going forward due to product mix, while AGF expects LP returns on long-term investments to be about 6%-8% over the next one to five years, below the long-term target of 8%-10%; on 2026 full-year long-term investment returns, management said they expect muted returns, around 1%-2% overall for the full book.

Judy Goldring described Q3 as a solid quarter and emphasized that AGF is making progress on its strategic objectives. She highlighted the breadth of growth across retail mutual funds, ETFs, SMAs, private wealth, and capital partners, and pointed to the strong balance sheet as a source of flexibility to invest and return capital. Her tone was constructive and steady, with repeated emphasis on sales momentum, disciplined expense management, and resilience across market environments.

Ken Tsang said adjusted EBITDA was CAD 49 million, down sequentially because Q2 included a CAD 15 million gain from the NHC transaction, but up year over year on higher net revenues. He noted SG&A of CAD 64 million, net management fees of CAD 101 million, and free cash flow of CAD 39 million, with trailing 12-month free cash flow at CAD 143 million and dividends at 23% of that amount. On capital allocation, he said the company returned CAD 56 million to shareholders in the period, including CAD 31 million of dividends and CAD 25 million of buybacks, repurchased over 600,000 shares in the quarter, and had CAD 170 million available on its credit facility plus CAD 432 million in investments and net debt of CAD 28 million.

Analysts focused on New Holland, flow trends, the long-term investment book, and Kensington performance. Ash Lawrence said AGF expects to consider exercising its New Holland control option in the next one to three years, but it is not currently in consent discussions with LPs; he also said New Holland is roughly breakeven on fee-related earnings today, but should move into FRE profitability in the next 12-24 months, while inclusive of performance fees it has been profitable for years. Management also said mutual fund flows slowed because of a risk-off quarter with more money going to balanced and fixed income, while SMA flows remained constructive in both Canada and the U.S. On long-term investments, management said monetizations have been limited over the past year and 2026 returns are expected to be muted, with some pressure from venture and private equity marks and liquidity-driven decisions in Kensington.