OM Asset Management - Q3 2015 Results

RNS Number : 5313E

Old Mutual PLC

04 November 2015

 



Old Mutual plc

Ref 747/15

4 November 2015

OM asset manAgement third quarter results

OM Asset Management plc (OMAM), the majority-owned subsidiary of Old Mutual plc, today reports its results for the third quarter ended September 30, 2015.

The following is an extract from the OMAM announcement and the full announcement is available via the OMAM website - http://ir.omam.com/investor-relations/news/

"OMAM Reports Financial and Operating Results for the Third Quarter Ended September 30, 2015

·      Economic net income of $37.9 million ($0.31 per share) for the quarter, up 0.8% compared to the 2014 period

·      Year to date economic net income of $113.2 million ($0.94 per share) excluding extraordinary performance fee, and $124.6 million ($1.03 per share) including extraordinary performance fee, up 8.5% and 19.5% respectively, compared to the 2014 period

·      U.S. GAAP earnings of $35.0 million ($0.29 per share) for the quarter and $118.6 million ($0.98 per share) for the year to date

·      AUM of $208.7 billion at September 30, 2015, a decrease of (2.4)% from September 30, 2014

·      Net client cash flows ("NCCF") for the quarter of $(2.5) billion yielding a positive annualized revenue impact of $0.7 million

London - November 4, 2015 - OM Asset Management plc (NYSE: OMAM) reports its results for the third quarter ended September 30, 2015.

"Our business performed well in a difficult environment during the third quarter," said Peter L. Bain, OMAM's President and Chief Executive Officer. "Our Affiliates are among the industry's leaders in their respective investment disciplines, with long-term track records of excellent investment performance generated by adherence to their investment disciplines over market cycles. They continue to produce strong results, with assets representing 68%, 84%, and 93% of revenue outperforming benchmarks over the one-, three-, and five-year periods as of September 30, 2015. We also continue to benefit from growth in higher-fee, in-demand products such as alternative and global/non-U.S. strategies as we generated positive annualized revenue of $0.7 million from net client cash flows during the quarter notwithstanding net AUM flows of $(2.5) billion. Our year-to-date annualized revenue of $25.5 million from net flows represents 3.5% of beginning of year run-rate management fee revenue."

Mr. Bain continued, "We continue to make progress in executing our growth strategy. We are working with a number of Affiliates to undertake business expansion and product development initiatives. In a volatile market environment, our Global Distribution team remains focused on strengthening its relationships with consultants and institutional investors across the globe and working with Affiliates to expand the product offerings available through our platform. In addition, we remain actively engaged in cultivating relationships with attractive, at-scale asset management boutiques seeking to enhance and expand their businesses for the long-term in partnership with us.

"With the passage of our first anniversary as a public company and the subsequent filing of a shelf registration statement relating to $2.0 billion of debt securities and ordinary shares, we are well positioned to access the capital markets over time to support the growth of our business," Mr. Bain added. "Finally, we would like to express our gratitude to Julian Roberts, who recently retired as CEO of Old Mutual plc and as Chairman of OMAM's Board of Directors. His personal warmth, insight and leadership during his tenure at Old Mutual and on our Board have been vital to our growth and have positioned OMAM for success in the years ahead. I am pleased that our long-term director, Jim Ritchie, has agreed to serve as our new Chairman. Jim has been a member of our Board since 2007, and has chaired the Board's Audit Committee and served on its Nominating and Corporate Governance Committee. Jim brings deep experience in financial services and a strong commitment to the effective governance and growth of our business and we look forward to his future contributions in his new role."

OMAM will hold a conference call and simultaneous webcast to discuss the results at 10am EST / 3pm GMT. To listen to the call or view the webcast, participants should:

Dial‐in

Toll Free Dial‐in Number: (866) 393‐4306

International Dial‐in Number: +1 734 385‐2616

Conference ID: 64955127

Link to webcast (register ahead of time or join immediately prior to the call):

http://event.on24.com/r.htm?e=1080875&s=1&k=BC0F0976768FA970C91A82A91D02A3EC

A replay of the call will be available beginning approximately one hour after its conclusion either on OMAM's website, at http://ir.omam.com or by:

Dial‐in Replay

Toll Free Dial‐in Number: (855) 859‐2056

International Dial‐in Number: +1 404 537‐3406

Conference ID: 64955127

Enquiries

External communications

Patrick Bowes                                      UK          [phone]

Investor relations

Dominic Lagan                                    UK          [phone]

Sizwe Ndlovu                                        SA           [phone]

Media

William Baldwin-Charles                                   [phone]

                                                                                [phone]

Notes to Editors

Old Mutual provides investment, savings, insurance and banking services to more than 17 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 2014, the Group reported adjusted operating profit before tax of £1.6 billion (on an IFRS basis) and had £319 billion of funds under management from core operations.

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

 

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