OM Asset Management Second Quarter Results

RNS Number : 3428V

Old Mutual PLC

06 August 2015

 



Old Mutual plc

Ref 564/15

6 August 2015

OM asset manAgement second quarter results

OM Asset Management (OMAM), the majority owned subsidiary of Old Mutual plc, today reports its results for the second quarter ended June 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 Second Quarter Ended June 30, 2015

·    Economic net income (excluding extraordinary performance fee) of $38.0 million ($0.32 per share) for the quarter and $75.3 million ($0.63 per share) for the year to date, up 11.4% and 13.1% respectively, compared to 2014 periods

·    Economic net income (including extraordinary performance fee) of $49.4 million ($0.41 per share) for the quarter and $86.7 million ($0.72 per share) for the year to date, up 44.9% and 30.2% respectively, compared to 2014 periods

·    Extraordinary performance fee of $11.4 million ($0.09 per share) net of associated expenses and taxes, related to certain alternative assets

·    U.S. GAAP earnings of $49.4 million ($0.41 per share) for the quarter and $83.6 million ($0.69 per share) for the year to date

·    AUM of $226.6 billion at June 30, 2015, up 5.4% from June 30, 2014

·    Net client cash flows ("NCCF") for the quarter of $0.8 billion yielding positive annualized revenue impact of $13.5 million

London - August 6, 2015 - OM Asset Management plc (NYSE: OMAM) today reports its results for the second quarter ended June 30, 2015.

"OMAM continues to execute across all elements of our growth strategy," said Peter L. Bain, OMAM's President and Chief Executive Officer.

"Our core business generated strong results during the second quarter, driven by solid organic growth across our Affiliates. Our net client cash flows of $786 million for the quarter contributed $13.5 million to annualized revenue and, for the first six months, annualized revenue of $24.8 million from NCCF represented over 3% of beginning of year run rate management fees. In addition, during a period of flat returns in the equity markets, our Affiliates produced excellent relative investment performance; as of June 30, AUM representing 70%, 74% and 89% of revenue outperformed benchmarks on a 1-, 3- and 5-year basis. While we were pleased to realize a net extraordinary performance fee of $11.4 million, we are particularly encouraged that our ENI per share excluding that fee grew 14.3% year-over-year, to $0.32."

Mr. Bain continued, "With the completion of our secondary equity offering in June, which resulted in Old Mutual plc's sale of 15,295,000 shares, we augmented the liquidity of our stock and expanded our public shareholder base. We also deepened the capabilities of our Global Distribution team this quarter with the addition of Trevedi Tewari in London, who will focus on relationships with institutional

investors and consultants in the U.K. and Ireland, and Steve Coyle in Boston, who will further develop our subadvisory new business initiatives. Assets raised by our Global Distribution initiative were approximately $1 billion in the first six months of 2015.

"In addition, our business remains well positioned to support our collaborative growth initiatives, as well as finance accretive investments in new Affiliates. We continue to make good progress in identifying and developing relationships with at-scale asset management boutiques who possess strong investment and executive talent and a vision to enhance and expand their businesses."

Ends"

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 

 

END

 

 

DOCBBGDICSGBGUL