AGF Management Ltd. today reported a drop profit for the second quarter ended May 30, as volatile markets trimmed revenue.

The mutual fund company profit for the quarter was $44 million, or 49¢ a share, down from $53.6 million, or 70¢ a share, a year earlier.

Revenue slipped to $194.3 million from $205 million in the same period.

AGF said there were $241 million in net redemptions from its long-term mutual funds amid market volatility during the second quarter.

Total assets under management (AUM) decreased 7.2% to $51.8 billion at May 31, 2008 from $55.8 billion as at May 31, 2007. Over the same period, mutual fund assets declined by 6.5% as a result of market depreciation and lower levels of gross sales.

“Despite the challenging markets faced by the industry, our assets have held up relatively well and our trust operations have continued to experience significant growth with total loan assets rising 44.2% year-over-year at the end of May,” chairman and CEO Blake Goldring said in a news release.

In addition, AGF announced plans to repurchase up to $60 million of AGF class B non-voting shares over the next several months.