OMAM results for second quarter ended 30 June 2016

RNS Number : 2694G

Old Mutual PLC

04 August 2016

 

Old Mutual plc

Ref 467/16

4 August 2016

OMAM Reports Financial and Operating Results for the second Quarter Ended 30 june 2016 

OM Asset Management plc (OMAM), the majority-owned subsidiary of Old Mutual plc, today reports its results for the second quarter ended 30 June 2016.

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, 2016

•     U.S. GAAP earnings of $36.3 million ($0.30 per share) for the quarter and $67.1 million ($0.56 per share) for the year to date, down (26.5)% and (19.7)%, respectively, compared to 2015 periods

•     Economic net income of $36.2 million ($0.30 per share) for the quarter and $68.2 million ($0.57 per share) for the year to date, down (4.7)% and (9.4)%, respectively, compared to 2015 periods (excluding the non-recurring performance fee)

•     AUM of $218.8 billion at June 30, 2016, an increase of 3.0% from December 31, 2015

•     Net client cash flows ("NCCF") for the quarter of $(2.9) billion yielding an annualized revenue impact of $(3.4) million; year to date NCCF of $(0.5) billion providing positive $3.9 million of annualized revenue impact

•     Partnership with Landmark Partners announced on June 14; on track to close in August

•     $400 million of long term financing raised in July

"In the second quarter, we continued to make progress executing on our strategy, as we positioned our business for long-term growth by diversifying our franchise through our agreed investment in Landmark Partners.  In addition, in July, we strengthened our capital structure through a successful debt offering," said Peter L. Bain, President and Chief Executive Officer of OMAM.  "While our Affiliates' performance was impacted by continued volatility and uncertainty in the financial markets, higher average assets and management fees generated 11% growth in ENI per share compared to the first quarter.  Net client cash flows for the second quarter reflected an anticipated decrease in the pipeline after several large mandates funded in the first quarter, with net flows of $(2.9) billion for the second quarter, which reflect $(3.4) million of annualized net revenue; however, net flows of $(0.5) billion for the year-to-date represent an increase of $3.9 million in our annualized net revenue. 

"We are very pleased to have announced our investment in Landmark Partners, a leading global secondary private equity, real estate and real asset firm.  We expect to complete the transaction this month and look forward to collaborating with the Landmark team to further grow and diversify their business and expand their distribution capabilities outside of the U.S. In addition, in July, we enhanced our financial flexibility through the placement of a $275 million 10-year institutional debt offering and a $125 million 15-year retail-oriented debt offering.  Both Moody's and S&P issued investment grade ratings in conjunction with the placements.  Combined with our cash flow from operations and existing credit facility, this additional capital provides ample capacity to continue to execute our business strategy, including investing in growth initiatives at existing Affiliates and future diversifying acquisitions, while efficiently managing our balance sheet.  We continue to enjoy the support of our Parent as it implements its previously announced Managed Separation strategy.""

Ends

Conference Call Dial-in:                             

A conference call and simultaneous webcast to discuss the results will be held at 10:00 am EST / 3pm BST / 4pm SAST on 4 August 2016. The earnings presentation is available to download at http://ir.omam.com. 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:                                    24898191

Link to Webcast:

http://event.on24.com/r.htm?e=1203705&s=1&k=2D11775B90172DB01107A659D764584C 

Dial-in Replay:

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 at:

Toll Free Dial-in Number:                    [phone]

International Dial-in Number:              [phone]

Conference ID:                                    24898191

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 18.9 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 2015, the Group reported adjusted operating profit before tax of £1.7 billion and had £304 billion of funds under management from core operations (excluding Rogge).

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

 

END

 

 

IR LIFEATDISIIR