Shares slid 4.1 percent to C$12.26 after reaching C$12.22, the lowest intraday price since April 30.
Revenue fell to C$119.1 million in the second quarter from C$136.9 million, a year earlier.
The company attributed the revenue drop to a decline in assets under management in its institutional accounts drove down management and advisory fee revenue.
Management and advisory fees are the primary sources of revenue for AGF. These fees are calculated based on a specific percentage of the average assets under management.
AGF had C$35.9 billion in total assets under management as of May 31, down 4.5 percent from a year earlier mainly due to net redemptions within institutional accounts.
Redemptions have plagued the mutual fund industry for the past five years due to volatility in the financial market.
Institutional assets under management fell 17 percent to C$11.95 billion at the end of the second quarter ended May 31.
The company posted a net income from continuing operations of C$14.5 million, or 17 Canadian cents per share, compared with a loss of C$10.4 million, or 12 Canadian cents per share, a year earlier.
Excluding one-time tax expenses, the company earned 13 Canadian cents per share.
"We continued to execute on our key priorities throughout the second quarter and to see improvements year over year in our investment management performance," Chief Executive Officer Blake C. Goldring said in the statement.
Gross sales in AGF's retail funds fell 9.4 percent to C$471 million.
Retail fund redemptions fell 13.5 percent in the quarter as investor sentiment continued to improve.
AGF also declared a 27 cent per share dividend on Class A Voting common shares and Class B Non-Voting shares for the three months ended May 31. The dividend is payable on July 18 to shareholders on record as at July 9.
The shares, which have 2 "buy", 5 "hold", 1 "underperform" and 1 "sell" recommendations from analysts, have lost 7.6 percent so far this year.