Globe files
The outlook for AGF Management Ltd. grew even more grim last month after the money manager reported a drop in assets under management of 5 per cent.
Over the past few years, such a sudden decrease could typically be attributed to shaky markets. However, most equity markets actually rose in July, and AGF's peers aren't faring as poorly.
Plus, analyst Shubha Khan at National Bank Financial notes that the vast majority of outflows came from institutional clients, which is never a good sign. Of the $2-billion drop in assets under management last month, $1.7-billion of it came from institutional and high net worth clients.
At the end of July, AGF's AUM stood at $41-billion.
These drastic problems aren't felt industry-wide. Monthly fund flow data shows that CI Financial Corp. saw its assets drop only 2.5 per cent last quarter, while AGF's were down 7 per cent over the same period. Mr. Khan attributes CI's strength to better fund performance and lower equity market exposure.
CI reports its quarterly results on August 9.
Tim Kiladze