AGF Management Ltd (AGFMF) (Q3 2026) Earnings Call Highlights: Record $74 Billion AUM and Ninth ...

Release Date: September 23, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• AGF Management Ltd ( AGFMF ) reported AUM and fee-earning assets of $74 billion, up 31% year over year, driven by strong growth in ETFs and SMAs.

• The company delivered its ninth consecutive quarter of positive retail mutual fund net sales, with $92 million in the quarter, despite a challenging industry environment.

• ETF and SMA AUM increased by 57% year over year to $5.5 billion, with net flows of $179 million in the quarter, more than tripling from the prior year.

• AGF Management Ltd ( AGFMF ) generated $39 million in free cash flow for the quarter, up $8 million from the prior year, and maintains a strong balance sheet with $432 million in investments and $170 million available on its credit facility.

• The company has consistently improved its EBITDA margin, with EBITDA as a percentage of AUM increasing from 17 basis points in 2022 to 25 basis points in the trailing 12 months, more than twice the industry average.

Negative Points

• AGF Management Ltd ( AGFMF ) experienced $650 million in institutional redemptions during the quarter, primarily from one client, due to asset allocation decisions, which negatively impacted segregated accounts and sub-advisory AUM.

• Net management fee rates declined by 1 basis point to 67 basis points, and the company guides to a further 2 to 3 basis point decline due to a shift towards lower-fee products like ETFs and SMAs.

• Revenues from AGF Capital Partners decreased compared to the prior quarter and prior year, partly due to a $15 million gain in the prior quarter and a $5 million markdown in a legacy venture investment.

• The company expects muted returns of 1% to 2% for its long-term investment book in 2026, with a lower return outlook of 6% to 8% over the next one to five years, below its long-term target of 8% to 10%.

• Kensington's private equity fund performance is down 7.5% year-to-date, driven by lackluster performance in some larger investments and write-downs taken to satisfy liquidity demands amid a muted private equity transaction market.

Q & A Highlights

Q: Romel Sabat of Jefferies asked about the next steps for New Holland, specifically whether AGF is in discussions with the fund's investors to obtain a controlling interest and the expected timing. A: Ash Lawrence, Head of AGF Capital Partners, explained that AGF holds an option to increase ownership to a controlling position, which was structured to give New Holland flexibility to grow. AGF expects to strongly consider exercising this option within the next one to three years, though they are not currently engaged with LPs for consent. They anticipate the process would not be lengthy or difficult given their existing relationship with the LPs.

Q: Romel Sabat of Jefferies followed up on New Holland's profitability, asking if it is expected to increase meaningfully over the next two to three years. A: Ash Lawrence, Head of AGF Capital Partners, clarified that while New Holland is profitable when including performance fees and carried interest, it is roughly breakeven on a fee-related earnings (FRE) basis. He expects the firm to move into an FRE profit position within the next 12 to 24 months, excluding performance fees and carried interest, due to operating leverage they have built.

Q: Graham Ryding of TD Securities asked for commentary on mutual fund flows, which have slowed, and how Q4 is trending. A: Judy Goldring, CEO, noted that quarter-to-date flows are around minus $48 million. She attributed the slowdown to a risk-off appetite among investors in Q3, with flows favoring balanced and fixed income funds over equities, which is AGF's traditional strength. However, she highlighted that on a combined basis with Canadian SMA and ETFs, the firm continues to see strong positive net flows.

Q: Graham Ryding of TD Securities asked about the institutional pipeline, specifically any notable developments. A: Judy Goldring, CEO, addressed the $650 million in redemptions from an institutional client, clarifying that $120 million came from an institutional series of mutual funds and $500 million from a strategic partner. She emphasized that the redemption was not performance-related but an asset allocation decision, and stated they are not aware of any other forthcoming redemptions.

Q: Graham Ryding of TD Securities asked for context on the expected monetizations from on-balance sheet capital over the next one to five years, including how much has been monetized in the past year. A: Ash Lawrence, Head of AGF Capital Partners, stated there has been minimal monetization in the last year due to a tough transactional market. He noted that 50% to 60% of the investment book is in legacy investments where AGF is a limited partner and does not control timing. The one to five-year guidance is based on fund life and knowledge as an LP, and while timing may be slower than anticipated, the long-term returns have been around 11% annually.

Q: Bart Dziarski of RBC Capital Markets asked for more detail on the fair value loss, specifically related to venture capital. A: Ash Lawrence, Head of AGF Capital Partners, explained that the negative $3.3 million fair value adjustment was offset by $7.2 million in distribution income, resulting in $4 million total revenue from long-term investments. The venture markdown was an idiosyncratic situation where a portfolio company lost a key client. He noted that 2026 has been tough for private equity and venture, and they expect muted returns of 1% to 2% for the full year on the long-term investments book.

Q: Bart Dziarski of RBC Capital Markets asked about the year-to-date performance of Kensington's private equity fund, which is down 7.5%, and what is driving that. A: Ash Lawrence, Head of AGF Capital Partners, attributed the performance to lackluster underlying performance in a few larger investments and a conscious decision to generate liquidity to meet redemption demands. The muted transaction market means selling assets comes at a cost, resulting in write-downs. He noted this is not ideal but is the better long-term decision for the fund.

Q: Bart Dziarski of RBC Capital Markets asked about the lowered return outlook of 6% to 8% over the next few years, given the constructive outlook for infrastructure. A: Ash Lawrence, Head of AGF Capital Partners, clarified that the guidance change is not a market view on infrastructure but a life cycle change. One of the funds is reaching the end of its life cycle, entering a harvest period where value-add activities give way to realization activities, leading to a more subdued return profile as assets mature.

Q: Tom MacKinnon of BMO Capital asked for more color on the 2 to 3 basis point net fee rate decline expected going forward and what parts of the business are driving it. A: Ken Tsang, CFO, explained the decline is driven by a shift in product mix towards SMA and ETFs, and a shift in mutual fund series towards F-Series from MF-Series. He highlighted that SMA revenues drop to the bottom line due to minimal marginal costs, and despite revenue margin declines, EBITDA as a percentage of AUM has increased from 17 basis points to 25 basis points over five years, which is more than twice the industry average.

Q: Graham Ryding of TD Securities asked if flows on the US SMA side were also constructive, given the healthy overall SMA growth. A: Judy Goldring, CEO, confirmed that flows on the US SMA side are also constructive.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .