AGF Management Ltd., a Canadian investment manager, plans to develop new products to attract institutional investors in hopes of doubling that business within five years, Chief Executive Officer Blake Goldring said.
The institutional business, along with sub-advisory and high-net-worth assets, accounted for 48 percent of the company’s C$36.4 billion ($35.1 billion) in assets under management as of Aug. 31. It “is a huge area of growth and I expect it to be many times the size it is today,” Goldring said in an interview in Toronto.
The firm’s assets under management fell 12 percent in August from the prior year, with the institutional portion declining 15 percent to C$17.5 billion, according to the company’s website.
AGF said in its second-quarter results that it had secured mandates from two Canadian institutions and one in the U.K. worth more than C$636 million in assets under management. The company said it would take over management of those funds during the current quarter.
Goldring said AGF is considering new funds that track so-called alternative investments such as derivatives or currencies.
“Don’t be surprised if we come out with something in the alternative space,” he said. “We have not had a product there and it would serve the needs of a different clientele.”
Goldring declined to discuss details of any new investment products, which will “possibly” be announced before the end of the year.
AGF in August unveiled a U.S. AlphaSector Class fund in partnership with F-Squared Investments Inc. designed to benefit from a rally in the U.S. economy, and has other products in the pipeline, the executive said.
AGF’s stock has climbed 22 percent since the firm reported second-quarter earnings on June 26 that surpassed analyst estimates. The shares were down 0.1 percent to C$12.89 at 11:44 a.m. in Toronto.
Goldring said today he expected to continue paying a quarterly dividend, which has held at 27 Canadian cents a share since AGF last increased it in 2011.