AGF Management Ltd. today reported strong financial results for the first quarter ended February 28, and historical highs for sales of mutual funds, reporting $2.2 billion of gross sales and $1 billion of net sales during the first quarter of fiscal 2007.

Sales in March have also been strong with AGF recording $340.5 million in net sales as of the close of business on March 26.

”We are gratified by the growing support of our clients,” said Blake Goldring, chairman and CEO. “We will continue to listen to our clients and work hard to earn their business as we strive to build on our success.”

As a result of these solid business fundamentals and strong financial results, on January 31, AGF announced an increase in the quarterly dividend rate from 18¢ a share to 20¢.

In the first quarter of fiscal 2007, consolidated revenue from continuing operations rose to $177 million compared with $149.5 million in the first quarter of the prior year.

Consolidated revenue in the prior year included a $9.9 million securitization gain (7¢ a share after tax) from the sale of RSP loans by AGF’s trust company operations segment.

Consolidated net income from continuing operations for the three months ended February 28, was $38.1 million or 42¢ a share diluted compared with $23.2 million or 26¢ a share diluted for the same period last year.

Earnings before interest, taxes, depreciation and amortization (EBITDA) from continuing operations were $80.4 million, compared with $67.3 million for the quarter ended February 28.

Total assets under management increased by 40.1%, rising to $51.7 billion at the end of the first quarter of 2007 from $36.9 billion as at February 28, 2006.

Over the same period, private investment management (PIM) and institutional assets grew 71.1% and mutual fund assets rose 22.5%.

PIM and institutional assets increased due to investment performance, new mandates and the acquisition of Highstreet Partners Limited. The Highstreet acquisition, which closed in De. 1, 2006 added $4.8 billion in assets under management.

The trust company operations segment continued to grow significantly with total assets rising 64.7%.