Investment thesis
AGF Management (AGFMF) (TSX:AGF.B) continues to battle headwinds such as fund outflows and EBITDA margin compression. The company’s focus on niche areas to grow its assets under management appears to be the right strategy. The company has also done an excellent job controlling its SG&A expenses. However, it remains a challenge for AGF Management to consistently achieve fund outperformance. The company’s share price appeared to be undervalued.
Source: YCharts
AGF Management’s recent performance
Fund flow turned negative
One of the performance metrics we look at asset management companies is the net