OMAM fourth quarter and full year results

RNS Number : 1156O

Old Mutual PLC

04 February 2016

 

Old Mutual plc

Ref 85/16

4 February 2016

OM asset manAgement fourth quarter and full year results

OM Asset Management plc (OMAM), the majority-owned subsidiary of Old Mutual plc, today reports its results for the fourth quarter and year ended 31 December 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 Fourth Quarter and Year Ended December 31, 2015

·     Economic net income of $36.5 million ($0.30 per share) for the quarter, down (22.3)% compared to the 2014 period

·      Year to date economic net income of $149.7 million ($1.24 per share) excluding extraordinary performance fee, and $161.1 million ($1.34 per share) including extraordinary performance fee, down (1.1)% and up 6.5%, respectively, compared to the 2014 period

·      U.S. GAAP earnings of $36.9 million ($0.30 per share) for the quarter and $155.5 million ($1.29 per share) for the year

·      AUM of $212.4 billion at December 31, 2015, down (3.8)% from December 31, 2014

·      Net client cash flows ("NCCF") for the quarter of $(3.2) billion with an annualized revenue impact of $(6.6) million; full year NCCF of $(5.1) billion with an annualized revenue impact of $18.9 million

·      OMAM's Board of Directors authorized a $150 million share repurchase program, subject to shareholder approval

London - February 4, 2016 - OM Asset Management plc (NYSE: OMAM) today reports its results for the quarter ended December 31, 2015.

"The strength and diversity of OMAM's multiboutique franchise - both across our Affiliate group and within each firm - enabled OMAM to generate solid core earnings in 2015, notwithstanding exceptional market volatility in the second half of the year," said Peter L. Bain, President and Chief Executive Officer of OMAM. "While a $(22.7) million decrease in quarterly performance fee revenue led to a decline in ENI for the fourth quarter, our management fee rate increased by over two basis points as we saw gross flows into higher margin products. Our net client cash flows of $(3.2) billion for the quarter were primarily attributable to outflows in the U.S. equity sub-advisory channel, sovereign wealth fund withdrawals, and higher than usual hard asset disposals; for the full year 2015, while we had negative net flows of $(5.1) billion, these flows produced annualized revenue growth of $18.9 million, or 2.6% of our beginning of period run rate management fees. In a difficult market, our Affiliates continued to build on their long-term track records during the quarter, with AUM representing 60%, 83%, and 92% of revenue outperforming benchmarks on a 1-, 3- and 5-year basis, respectively, as of December 31, 2015.

"The first month of 2016 has presented the entire industry with challenges. However, we believe that our business is well positioned to withstand such market cycles, as our profit share model provides structural variability to our expenses. We remain committed to investing alongside our Affiliates in medium-term growth initiatives, and have made good progress to date. In order to enhance our capital management flexibility, our Board of Directors has authorized a $150 million share repurchase program, subject to shareholder approval."

Mr Bain concluded, 'We see meaningful opportunities to deploy capital and build long term value for our shareholders through accretive transactions. Notwithstanding the volatile market conditions, we continue to be engaged with high quality boutique firms, evaluating potential partnerships against our strict investment criteria.' "

OMAM will hold a conference call 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: [phone]

International Dial-in Number: [phone]

Conference ID: 85386080

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

http://event.on24.com/r.htm?e=1100164&s=1&k=37DA7C978D2A54015A6597440E4C5AE5

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: [phone]

International Dial-in Number: [phone]

Conference ID: 85386080

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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