AGF Management Ltd. said Wednesday that net income for the first quarter of 2005 fell 11%, while revenue was off 1.1%.

The mutual fund company said consolidated net income for the period ended Feb. 28 was $21.2 million vs $23.8 million a year earlier, while revenue slipped to $157.4 million from $159.1 million.

AGF said cash flow from operations (before net change in non-cash balances related to operations) was $60.8 million vs $61.6 million a year ago. It is increasing its quarterly dividend rate to 15 cents from 11 cents.

“AGF continues to generate healthy cash flow, even during a period when
we are making strategic reinvestments in our core investment management
business,” said Blake Goldring, AGF president and CEO, in a statement.

Goldring said the company, which contines to report net fund redemptions, “made important progress this quarter towards strengthening our mutual fund business with the introduction of significant enhancements and
additions to our product lineup. This activity will continue through the year as we work to reconnect with our key clients and develop products and services to meet their business needs.”

AGF said that over the past year 77% of its mutual fund assets under management had performed above median for the 10-year period ending Feb.28.

Mutual fund assets under management remained “relatively flat” compared with Nov. 30, 2004 AUM of $22.7 billion. It said the strong investment performance offset net redemptions in the quarter.