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

“The current economic and market environments remain challenging and have had an impact on our financial results,” says Blake Goldring, president and CEO of AGF.

The Toronto-based mutual fund and wealth-management firm said net income fell to $37 million, or 40¢ a share, from $57.6 million, or 63¢ a share, a year ago.

Revenues in the quarter rose to $179.1 million from $163.2 million in the corresponding period of last year.

The company says new accounting policies for income taxes and goodwill and other intangible assets as reported in the first quarter of 2002 have significantly impacted its comparative net income results.

For the three months ended May 31, 2002, AGF reported cash flow from operations (before net change in non-cash balances related to operations) of $76.6 million, or 83¢ per share diluted, compared with $75.8 million or 83¢ per share diluted for the second quarter of 2001, an increase of 1.1%.

Mutual fund assets under management stood at $28.24 billion as at May 31, 2002.

The directors of AGF Management Ltd. declared a dividend of 6.5¢ per share.