Record net sales and stringent cost controls have led to a record second quarter, say AGF Management Limited. For the quarter ended May 31, 2001, AGF reported cash flow from Operations, before net change in non-cash balances related to operations, of $75.8 million, or $0.82 per share fully diluted for the quarter, compared with $58.1 million or $0.71 per share fully diluted for the second quarter last year, a gain of 30.5%.

Consolidated revenue for the quarter grew 31.7% to $163.2 million, up from $123.9 million for the quarter ended May 31, 2000. “AGF has powered through the first two quarters, despite volatile markets, as a result of our industry-leading net sales and rigourous cost controls,” says Blake Goldring, president and chief executive officer, AGF Management Ltd. “AGF’s above-median fund performance and excellent sales momentum should continue to drive success over the remainder of the year.”

During the first six months of fiscal 2001, AGF achieved record mutual fund net sales of $1.84 billion. Consolidated net earnings after income taxes for the three months ended May 31, 2001, were $57.6 million or $0.63 per share fully diluted compared with $30.0 million or $0.37 per share fully diluted for the second quarter a year ago.

Results for the second quarter of 2001 were positively affected by a reduction in future income taxes in the amount of $36.1 million or $0.39 per share fully diluted with the introduction of lower Ontario tax rates.

AGF mutual fund assets under management increased over the quarter to $30.21 billion, up from $21.79 billion a year ago.

The directors of AGF Management Limited declared a dividend of six cents per share on the Class B Non-Voting Shares and on the Class A Voting Common Shares of the Corporation, payable July 23, 2001, to shareholders of record on July 10, 2001.

The new quarterly dividend rate represents an increase of 20 per cent from the previous quarterly rate of five cents per share.