AGF Management Ltd. reported positive net sales in its mutual fund business for the second quarter of fiscal 2006, ended May 31, on Wednesday as gross sales of mutual funds were 76.9% higher and redemptions were 10.7% lower than the same quarter in the previous year. Institutional and private investment management assets were higher and AGF Trust loan assets continued to grow.

In the second quarter, consolidated revenue from continuing operations rose to $174.2 million compared with $147.1 million in the second quarter of the prior year. Consolidated net income from continuing operations for the three months was $21.7 million or $0.24 per share diluted compared with $19.7 million or $0.22 per share diluted for the same period last year.

Net income for the second quarter rose to $33 million, vs $22.4 million in the comparable quarter of 2005. Net income for the three months included a $13.3 million gain net of taxes from repayment of debt as well as a $2.1 million loss related to a post transaction adjustment on the sale of Unisen.

“Our financial results in the second quarter of this year improved over last year,” said Blake Goldring, president and chief executive officer, AGF. “We have also seen assets increase in each of our businesses as our client centric approach continues to resonate.”

Total assets under management increased by 17.8%, rising to $37.7 billion at the end of the second quarter from $32 billion at May 31, 2005. Over the same period, institutional assets grew 58.5% and private investment management assets grew 13.5%. The Trust Company Operations segment continued to grow significantly with total assets rising 82.6%.

In November 2005, AGF announced the launch of AGF Elements, an innovative portfolio solutions product that offers an unprecedented commitment to excellence in money management with the addition of a feature that gives investors new fund units if their portfolio does not outperform its customized benchmark. During the quarter, AGF Elements was marketed successfully and reached $555 million in assets at May 31.

The company’s board of directors also declared a dividend of 18¢ per share on the Class B non-voting Shares and on the Class A common voting Shares of the corporation. This dividend will be payable on July 20 to shareholders of record on July 10.