OM Asset Management 3rd Quarter Results

RNS Number : 1859W

Old Mutual PLC

05 November 2014

 



Old Mutual plc

Ref 277/14

5 November 2014

OM Asset Management third quarter results

OM Asset Management (OMAM), the majority owned subsidiary of Old Mutual plc, today reports its results for the third quarter and nine months ended September 30, 2014.

The following is an extract from the OM Asset Management announcement. Access to the full announcement is available via the Old Mutual corporate website - www.oldmutual.com

"OMAM Reports Financial and Operating Results for the Third Quarter Ended September 30, 2014

·      Economic net income of $37.6 million ($0.31 per share) for the quarter, up 19% from the comparative quarter in 2013

·      Nine month economic net income of $104.3 million ($0.87 per share), up 16% from the comparative period in 2013

·      U.S. GAAP earnings of ($1.7) million for the quarter and $17.4 million for the nine months ended September 30, 2014

·      AUM of $214 billion at September 30, 2014, up 16% from September 30, 2013

·      Net client cash flows of $3.1 billion for the quarter and $5.7 billion for the year-to-date

·      Partial exercise of IPO Green Shoe for 2,231,375 shares

London - November 5, 2014 - OM Asset Management plc (NYSE: OMAM) today reports its results for the third quarter and nine months ended September 30, 2014.

"Our Affiliates - and our business more broadly - generated strong results in a volatile equity market during the third quarter," said Peter L. Bain, President and Chief Executive Officer of OMAM. "Led by a 21% increase in average assets under management, ENI Revenue increased 23%, to $159 million, and pre-tax economic net income grew 23%, to $49.5 million, in the third quarter of 2014 compared to the third quarter of 2013. Likewise, our ENI operating margin before Affiliate key employee distributions increased from 36% to 38% during this period.

"Our investment products continue to outperform their benchmarks across a range of asset classes and investment styles. On a revenue-weighted basis, approximately 66%, 70%, and 81% of our products are outperforming their benchmarks over a 1-, 3- and 5-year period, respectively. During the quarter, our emerging markets and global equities products performed particularly well, and also continue to attract significant net client cash flows. Our third quarter net client cash flows of $3.1 billion generated annualized revenue impact of $19.1 million, the highest level in the last eleven quarters."

Mr. Bain continued, "With interests aligned through equity ownership and profit sharing with our Affiliates, we are true partners in identifying and executing upon opportunities to accelerate the growth of our Affiliates' businesses. We continue to make excellent progress in our collaborative growth initiatives, with approximately $1.0 billion in gross client cash flows in the quarter into products supported by our seed or growth capital initiatives. In addition, our Global Distribution platform continues to generate strong flows, with $1.8 billion of new fundings during the quarter, and a total of $4.9 billion raised thus far in 2014. We will also seek growth opportunities through partnerships with at-scale asset management boutiques with strong investment and executive talent and a vision to enhance and expand their businesses in partnership with OMAM."

Mr. Bain concluded, "We are very pleased to have undertaken our initial public offering on October 8, and the subsequent partial exercise of the Green Shoe. We remain focused on generating long-term value for our shareholders through the consistent execution of our growth strategy."

Ends

Enquiries

External communications

Patrick Bowes                           UK        [phone]

Investor relations

Dominic Lagan                           UK        [phone]

Media

William Baldwin-Charles                          [phone]

                                                             [phone]

Notes to Editors

Old Mutual provides investment, savings, insurance and banking services to more than 16 million customers in Africa, the Americas, Asia and Europe. Originating in South Africa in 1845, Old Mutual has been listed on the London and Johannesburg Stock Exchanges, among others, since 1999.

In the year ended 31 December 2013, the Group reported adjusted operating profit before tax of £1.6 billion (on an IFRS basis) and had £294 billion of funds under management from core operations.

For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com 

 

END

 

 

QRTFSUSMIFLSEDF