The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst
: Maybe first question for Ash. Can you give a bit more color and details on the $24.4 million revenue from the AGF Capital Partners, maybe the
chunkier pieces. And then historically, you've guided to that 8% to 10% return on your long-term investments. Question is why is that still relevant?
I think in your slide, you show kind of 12.3% IRR and obviously, you've done better than that this quarter.
Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst
: Okay. And then second question I have here, maybe for Ken. How should we think about the Kensington contribution and performance fee
expectation now that you kind of closed that transaction? Can you provide kind of historical performance fees versus management fees mix?
And then on a related question for New Holland, can I -- maybe just remind me how their contribution hits your financials? Is it just the interest
from the convertible notes or any other nuance that we should be aware of?
Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst
: Okay. And then sorry, I just wanted to clarify. So on the Kensington piece, are you able to provide maybe the historical performance fee mix versus
management fees, like not on a prospective basis that may be historically how they have done?
Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst
: Yes. Okay. That makes sense. And then if I can just sneak one more in for Judy. I think she's on the call. Maybe just update on the RSP season. Maybe
talk about how you're positioned to capture the potential flows back to investment funds when rates eventually fall and GICs and cash kind of
move back out of the sidelines?
Question: Nikolaus Priebe - CIBC Capital Markets, Research Division - Analyst
: I just wanted to circle back on the question around the fair value adjustment in the quarter. So the adjustment was $22 million, the long-term
investments at the beginning of the quarter about $250. So the magnitude is something like 9%. I don't know what the split is between infrastructure
and private credit, but really simplistically, if it were split evenly, it would apply more like a 19% or something in that order of magnitude in a single
quarter. So it just seems unusually large to me. Like was there any event that triggered the revaluation of a chunkier investment or anything more
specific that kind of prompted the markup there?
Question: Nikolaus Priebe - CIBC Capital Markets, Research Division - Analyst
: Okay. Okay. No, fair enough. And then the results of a $16 million capital commitment that was made in the quarter to the private markets business.
Now Kensington, that investment was completed subsequent to quarter end, which is when I would have expected to see any related commitment
made. So what was that $16 million commitment related to in the quarter?
Question: Nikolaus Priebe - CIBC Capital Markets, Research Division - Analyst
: And just also like how are those commitments expected to evolve? Are you expecting to have further commitments with Kensington, I guess,
subsequent to quarter end. Like I'm just kind of balancing that against the scale of proprietary capital on balance sheet and how that will all play
out?
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APRIL 04, 2024 / 3:00PM, AGFb.TO - Q1 2024 AGF Management Ltd Earnings Call
Question: Nikolaus Priebe - CIBC Capital Markets, Research Division - Analyst
: Yes. Okay. No, that's good. And then last one for me before I pass the line. So net redemptions in the mutual fund business in the quarter were
$125 million. Are you able to say what those net flows would have been if we also included the ETF and SMA offerings as well?
Question: Nikolaus Priebe - CIBC Capital Markets, Research Division - Analyst
: Okay. I guess I'll have to keep a closer eye on that line item in the AM schedule.
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APRIL 04, 2024 / 3:00PM, AGFb.TO - Q1 2024 AGF Management Ltd Earnings Call
Question: Gary Ho - Desjardins Securities Inc., Research Division - Analyst
: Yes. Sorry about that. So just a quick follow-up, maybe for Kevin or Ash. So you've now hit your $5 billion alternative target. Maybe just going back
to Graham's question there. So when you look out maybe 3 to 5 years, what is the next target that we should think about in terms of either AUM
target or EBITDA or mix target for your alternative business?
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