Weakness in financial markets forced AGF Management Inc. to record a fourth-quarter loss, the company said Wednesday.

The investment management company reported a loss of $19.3 million, or 21¢ a share, in the quarter ended Nov. 30, 2008, compared to a profit of $49.4 million, or 54¢ a share in the year earlier period.

The loss includes $46.3 million in impairment charges related to weakness in financial markets, AGF said.

Excluding the impairment charges, AGF would have posted a profit of $18.4 million, or 20¢ a share.

The value of AGF’s assets under management plunged 33.8% as global stock markets fell

In the wake of the financial meltdown, AGF’s total assets under management fell 33.8% to $35.6 billion at Nov. 30, 2008 from $53.7 billion as at
Nov. 30, 2007.

“The extraordinary instability of financial markets over the past year has significantly impacted global investment management companies, placing downward pressure on assets under management and revenue,” CEO Blake Goldring said in a release.

“While our business has clearly been touched by market declines, we have taken decisive action to increase our financial strength by reducing expenses and paying down debt.”

Full-year net income was down 27% to $128.5 million or $1.41 per share as revenues declined 7% to $725.6 million.

Return on equity for the year was 11.8%, down sharply form 17.4% a year ago.

The company said that “consistent with the strong downward industry trend,” its total assets under management decreased to $35.6 billion at Nov. 30, 2008 from $53.7 billion a year before.

AGF said it paid down $65.2 million of long-term debt during the year and has left its dividend unchanged.

IE