Ongoing Market Losses Continue to Affect Flow Picture at AGF Management; No Change to FVE

There was little in no-moat-rated AGF Management's fiscal third-quarter results that would alter our long-term view of the firm. We are leaving our CAD 7.50 per share fair value estimate in place. AGF Management closed out the August quarter with CAD 39.6 billion in AUM, down 1.8% sequentially and 8.8% on a year-over-year basis. This was slightly better than we had been expecting given the equity market selloff that started in January 2022, which was exacerbated by the Russian invasion of Ukraine in February of this year. The firm (by our estimates) recorded negative flows during the period, with a reported CAD 51 million of inflows for its retail fund operations augmented by outflows from its institutional and sub-advised channels. Even so, we expect the firm to generate slightly positive organic AUM growth for all of fiscal 2022.