AGF Management Ltd. reported that its net income from continuing operations for the third quarter ended Aug. 31 was up by 4.3% over the previous year, driven by reductions in interest, amortization and taxes. This resulted in a 7% increase in earnings per share on a fully diluted basis over Q3 2007.

Global stock market volatility prevailed in Q3, resulting in a 7.3% decline in revenue and a 10.7% decrease in earnings before interest, taxes, depreciation and amortization compared with Q3 2007.

“As our industry faces turbulence in the financial markets, we are sticking with a long-term view and remain committed to our long-term business strategy. Our business fundamentals are solid and we will continue to employ a client-centric focus to realize our key growth initiatives,” said chairman and CEO Blake Goldring. “Our best strategy, especially during periods of volatility, is to closely monitor expenses and be prudent with capital by paying down debt and strengthening our balance sheet. In Q3, we continued to achieve success in controlling expenses in our investment management operations, paid down debt and realized significant year-over-year growth in our trust company loan assets and profitability.”

Total consolidated revenue from continuing operations decreased to $184.7 million in Q3 compared with $199.2 million in Q3 of the prior year. EBITDA from continuing operations totalled $81.5 million for the three months ended Aug. 31 compared with $91.3 million for the three months ended Aug. 31, 2007. For the Q3 2008, EBITDA margins declined slightly to 44.1% from 45.8% in the same period a year earlier. In addition, the company paid down $24.2 million of long-term debt.

Total assets under management decreased 9.4% to $48.7 billion at Aug. 31 from $53.8 billion as at Aug. 31, 2007. Over the same period, mutual fund assets declined by 12.2% as a result of market depreciation and lower levels of gross sales. Average mutual fund assets for the quarter decreased 11.9% over Q3 of 2007 and 5.4% year-over-year. Institutional and high-net-worth client assets declined 5.8% year-over-year primarily as a result of client rebalancing and redemptions.