AGF Management (B) (AGF.B.TO)

Equity oriented so, coming out of a time when bonds had done great, their growth wasn’t as good. The family owns a lot of shares which helps to have a bit of reluctance to cut the dividend. Yield of 8.6% is pretty hefty so they could cut it 25% and still have it 6.5% making is still worthwhile owning. If the market continues to be okay, then the risk will go down.

If you are holding it for the yield, by all means. Dividend is safe. Family owns a lot of stock. There is no earnings growth as they face the same issues as the rest of the mutual fund industry. If markets go higher then funds go higher and their fees go higher and that offsets redemptions.

9.6% dividend yield, which to some people indicate that this could be cut. Have been losing an awful lot of customers. If they lose money under management, that means there is a lot less money going to the company and a lot less money they can potentially payout. An interesting contrarian play but too expensive for him.

Cost pressure and fee disclosure will be hard on the mutual fund business. A dramatic change coming over the next 5 years and it won’t be good for the companies, just for consumers.

This is a tough business. Banks are consolidating this industry every day and it is tough as an independent to continue to make a solid return. There is a family ownership situation with this one which you have to evaluate in addition to the business merits.

Performace has been decent, company has a percentage of mutal fund assests, and it's price will depend on how the market goes.

A multi-voting stock, so the family controls the company. Lost a very high profile international money manager a while ago so there were a lot of out flow from their institutional client base. Improving markets will help this company. Have quite an attractive dividend. Could be a long, drawn out process because it is family controlled.

Just reported not very good earnings. Performance of their funds has not been very good either. He’d be a little careful of looking at the yield. Although they do have some cash in the balance sheet and should be able to sustain the yield for a bit, if they face heightened redemptions on some of their funds the yield could be affected.

Feels this will be a function of how stock markets go over the next couple of years. If the US can solve some of its problems and if Europe can do likewise, we may see pretty good markets and this would be a beneficiary of that.

Had setbacks over the last few years. Had a loss of assets under management but that seems to have sort of bottomed out and, in fact, may be turning a bit here. Still generates significant cash flow. Doesn’t expect you will see significant appreciation out of this. Better alternatives in the financial services area.

(Market Call Minute) Prefers CI. Does not like management.

Feels the 10% dividend is high but is sustainable because of their cash flow. He’s not big on the brokerage fund business because these companies are really struggling to gain market share at this time.

You want to buy this group if you think stock markets are getting stronger. Right now we are in a stronger market and people are looking at this group and we are seeing money moving into insurance, banks and asset management. In this group the most predictable are the asset management companies because they have recurring fees. The problem is, if you’re recurring fees are not growing and are going backwards. He doesn’t see anything changing and the returns have not gotten a lot better. He would prefer CI Financial (CIX-T).

Being an ETF guy he really wonders about mutual funds. Their yield is fully covered, but there is no real driver that will drive mutual fund companies higher. 12.2% yield. It is sustainable now, but it scares him.

Funds haven’t been a great place to be invested in and this one is suffering from the same kind of issues, i.e. funds having a lacklustre performance with some of their star managers leaving. They also own a small mortgage lender giving them a kind of double whammy where you have an asset manager and a mortgage lender all wrapped up into one. Thinks they will eventually come good. Doesn’t think they are at their bottom right now so it’s not time to buy.