AGF reached a significant milestone during the first quarter of fiscal 2006, reporting positive net sales of mutual funds in the month of February.

“AGF’s focus on our core investment management business is clearly producing results,” said Blake Goldring, president and CEO of AGF. “We have momentum across all business segments and our revenue and profits are higher for the quarter, ended Feb. 28, compared with the same quarter last year.”

And as a result of these solid business fundamentals and strong financial results, AGF announced a 20% increase in the quarterly dividend rate to 18¢ per share from 15¢ per share to 18 cents on Jan. 25. (The dividend will be payable on April 17 to shareholders of record on April 7.)

Consolidated revenue from continuing operations rose to $169.2 million this quarter compared with $145.6 million in the first quarter of 2005. Consolidated revenue included a $9.9 million securitization gain from the sale of RSP loans by its Trust Company Operations segment.

Consolidated net income from continuing operations for was $24.1 million, or 27¢ per share diluted, this quarer compared with $20.2 million or, 22¢ per share diluted, for the same period last year. Earnings before interest, taxes, depreciation and amortization from continuing operations were $68.7 million, compared with $65 million for the first quarter of 2005.

Total assets under management increased by 12%, rising to $36.9 billion at the end of the quarter from $33 billion during the same time a year earlier.

Over the same period, private investment management and institutional assets grew 30% and mutual fund assets rose 3.7%. The Trust Company Operations segment continued to grow significantly with total assets rising 100.1%.

AGF Trust Company completed the sale of a portfolio of RRSP loans on Feb. 28. This securitization transaction resulted in a $9.9 million gain(7¢ per share after taxes).

Last Novembe, AGF announced the launch of AGF Elements, a portfolio solutions product that offers money management with the addition of a feature giving investors new fund units if their portfolio does not outperform its customized benchmark. During the quarter, AGF Elements was marketed successfully and reached $264.7 million in assets as of Feb. 28.

“Momentum from the first quarter has continued and in March we announced that AGF was retained as the investment advisor on the Oil Sands Sector Fund, which raised over $400 million, making it one of the largest retail structured product offerings this year,” said Goldring.