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AGF profit slips on Acuity acquisition costs

Blake Goldring, Chairman and CEO of AGF Management

Yvonne Berg/yvonne berg The Globe and Mail

AGF Management Ltd. says its first-quarter net income slipped 9.5 per cent due to one-time costs stemming from an acquisition that also helped boost its revenue.

The investment management firm's net income fell to $27.7-million from $30.6-million in the first quarter of 2010.

Revenue rose 4.3 per cent to $162.9-million from $156.2-million, mainly due to an increase in investment management revenues and the acquisition of Acuity Funds Ltd. and Acuity Investment Management Inc.

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Earnings per share were 30 cents compared to 34 cents in the first quarter of 2010 and included one month of Acuity's financial results.

Assets under management increased 19.7 per cent to $52.5-billion in the quarter, mainly as a result of the Acuity acquisition.

"The acquisition of Acuity exemplifies AGF's commitment to diversification and growth, while effectively leveraging our core focus as an investment management firm," said chairman and CEO Blake Goldring in a release.

AGF saw a 14.3-per-cent decline in loan assets in the quarter, and loan originations were lower due to a weaker than expected RRSP season.



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