# AGF Management (AGF.B)



## joncnca (Jul 12, 2009)

the price seemed to take a nose dive after that last dividend payment in april, and conference call in late march. revenues were down since last year, but was this oversold?

anyone have any insight or direction about what drove this change, cause the price is at a 52 week low and dividend yield is pretty nice and high.


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## Jungle (Feb 17, 2010)

Massive net redemptions and they are getting worse. One of their best fund manager's for Emerging markets left. Revenue is based on market prices, lower market = less money from fees. 

IGF is having the same problem, so much they announced they are lowing their MERs and changing the commision structure paid to financial salesmen. There could be a shift in the investment industry because nobdody has been making money over the last few years especially if your MER is like 2-4%. 

Now IGF has sold their trust unit, they want to concentrate on core business; ie mutual funds. 

I don't see a problem in the long term. If markets go up, money will come back, customer base will slowly build too.

Own @ $14.05, it hurts. Beware of dividend cut, payout ratio from earnings is too high now. But they have 400 million from selling the trust. We'll see what happens.


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## doctrine (Sep 30, 2011)

If you cannot picture AGF and IGM with greater sales, and thus revenues and profits, over the next 10 years, then avoid. I cannot see how their business model of high priced MERs can be sustained in an era where Blackrock and Vanguard own trillions in assets and still growing thanks to low cost ETFs. 

Both of these companies will have to re-invent themselves, and they are not truly priced for a turnaround. Both are likely to fall as fast or faster as they pay out dividends.


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## PMREdmonton (Apr 6, 2009)

In this space I'd much rather own Blackrock with its immense financial power.

If you want something risker, Wisdom Tree are major innovators and have been growing AUM quite fast for their unique products which are usually cheaper than the major Canadian mutual fund companies but sell at a substantial premium in MERs to funds from Vanguard and Blackrock. Other reasonable investment casers could be made for something like FII (Federated Investors) which runs a bunch of pension funds.


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