AGF Management Ltd. is reported lower profit for the first quarter ended February 28.

The fund management firm said Wednesday that volatile financial markets led to the drop in profit. AGF reported net income of $28.4 million, or 30¢ per share, for the quarter, compared with a profit of $33.9 million, or 37¢, a year ago.

Revenues for the quarter fell 2.4% to $158.7 million from $162.6 million.

AGF said it is increasing it’s quarterly dividend by 15.4% to reflect sold cash flow.

Cash flow from operations for the quarter (before net change in non-cash balances related to operations) was $51.9 million, compared with $68.8 million in 2002. The decline in cash flow was accentuated by a $5.1 million increase in current taxes related to the lower level of selling commissions paid.