TORONTO - AGF Management Ltd. (TSX:AGF.B) said Wednesday it lost $13.3 million in its latest quarter as revenue fell 20 per cent compared with a year ago.
The investment fund manager said the loss amounted to 14 cents per share in the quarter ended Aug. 31 compared with a profit of $15.4 million or 16 cents per share a year ago.
Revenue totalled $119.8 million, down from $151.4 million.
AGF sold its trust operations to Laurentian Bank's B2B Trust subsidiary earlier this year for $421.6 million.
Excluding the sale and $30 million in one-time items including restructuring and impairment charges, AGF said it earned 11 cents per share.
Total assets under management were $41.2 billion at Aug. 31, down 14.8 per cent from $48.4 billion a year ago.
"Although we remain confident in our progress against our long-term plan, we certainly recognize the difficulties of the markets and investor apathy towards equity investing," AGF chairman and chief executive Blake Goldring said in a letter to shareholders.
"These continue to be challenging times for gross equity flows for the industry and AGF. However, we are confident that investors will return to the category as market volatility subsides and there is a sustained positive market."
Shares in the company fell $1.09 or about nine per cent to trade for $11.34 on the Toronto Stock Exchange.
AGF said the sale of the trust business allows it to focus exclusively on investment management.
Goldring noted the company has used $44 million of cash from the proceeds to repurchase AGF shares and has started looking at growth opportunities both in Canada and internationally.
"We ended our quarter with the important addition of four talented team members to the global equity and emerging markets teams, which positions AGF to be actively selling to global institutions," he said.