AGF Management is reporting a reduced profit for the second quarter ended May 31.

Consolidated net income for quarter was $22.4 million compared with $34.0 million for the same period last year

Diluted earnings per share were 25¢ per share in the second quarter of 2005, compared with 37¢ per share a year ago.

AGF says comparisons with the three months ended May 31, 2004, should recognize the acquisition of certain tax-related benefits at that time, which resulted in a lower effective income tax rate and benefited net income and cash flow from operations.

Consolidated revenue for the quarter was $158.1 million compared with $166.5 million in the second quarter a year ago.

“AGF has continued to make progress on our plan to refocus and reinvest in our core investment management business, while generating enhanced shareholder value,” said Blake Goldring, president and chief executive officer, AGF. “With strong free cash flow, this quarter we completed a significant share buyback of more than one million shares, in addition to the 36.4 per cent dividend increase announced last quarter.”

AGF’s Trust Company operations continued to grow during the quarter. Revenue in the trust company operations for the second quarter grew by 44.1% from the prior year due to a 62% year-over-year increase in mortgage loans and a 67% increase in the consumer loan portfolios.

Mutual fund assets under management stood at $21.7 billion at May 31, 2005. Assets in institutional and private investment management mandates have grown to $10.4 billion, representing 32.4% of total assets under management, an increase of 66% over May 31, 2004.

AGF shares closed up 49¢, or 2.95%, at $17.09.