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Press release from CNW Group

AGF Management Limited Completes Sale of AGF Trust

Wednesday, August 01, 2012

AGF Management Limited Completes Sale of AGF Trust10:39 EDT Wednesday, August 01, 2012Proceeds will enable AGF to grow its global investment management businessTORONTO, Aug. 1, 2012 /CNW/ - AGF Management Limited ("AGF") today announced it has successfully completed the closing of the sale of AGF Trust Company ("AGF Trust") to B2B Bank, a subsidiary of Laurentian Bank.  All regulatory authorizations and approvals have now been received.As a result of the sale, AGF will receive $421.5 million in total cash proceeds comprised of $248 million for the total equity of AGF Trust and repayment of the $109.5 million subordinated debt and the $64 million preferred shares from AGF Trust to AGF Management Limited.The sale was initially announced on June 6, 2012. The sale price of $421.5 million was adjusted based on AGF Trust's continued profitability and higher book value of equity at closing.The agreement also includes additional cash payments, to a maximum of $20.0 million over five years, if credit quality reaches certain criteria."The completion of the sale of AGF Trust demonstrates AGF's commitment to developing a leading, global investment management firm," said AGF Chairman and Chief Executive Officer Blake C. Goldring. "AGF now has only one focus, and that is providing best-in-class investment management solutions to investors in Canada and internationally."Mr. Goldring went on to add, "We now have significant capital to accelerate our business growth in investment management and increase value to our shareholders. Key strategic investments in our existing operations and new opportunities will foster organic growth in all of AGF's channels, including its retail, institutional and private client businesses."About AGF Management LimitedAGF 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 approximately $43 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.Caution Regarding Forward-Looking StatementsThis 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, size and default experience on the company's loan portfolio and cost efficiency in loan operations and 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.SOURCE: AGFFor further information: Peter Block 416-848-1431