OMAM First Quarter Results

RNS Number : 3491X

Old Mutual PLC

05 May 2016

 

Old Mutual plc

Ref 306/16

5 May 2016

OMAM Reports Financial and Operating Results for the First Quarter Ended 31 March 2016 

OM Asset Management plc (OMAM), the majority-owned subsidiary of Old Mutual plc, today reports its results for the first quarter ended 31 March 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 First Quarter Ended March 31, 2016

•    Economic net income of $32.0 million ($0.27 per share) for the quarter, down (14.2)% from the comparative quarter in 2015

•    U.S. GAAP earnings of $30.8 million ($0.26 per share) for the quarter, down (9.9)% from the comparative quarter in 2015

•    AUM of $218.0 billion at March 31, 2016, an increase of 2.6% from December 31, 2015

•    Net client cash flows ("NCCF") for the quarter of $2.4 billion yielding a positive annualized revenue impact of $7.3 million

"Our results for the quarter demonstrate the strength and diversity of our multi-boutique franchise, as our Affiliates generated solid organic NCCF growth of $2.4 billion in a period marked by extreme volatility and challenging macroeconomic trends," said Peter L. Bain, President and Chief Executive Officer of OMAM.  "Our financial results were impacted by a (5.3)% market-driven decline in average assets, and higher expenses as we continued to invest in the business."

"Our business model is designed to generate growth opportunities across our existing Affiliates through collaborative initiatives and our Global Distribution platform, and we continue to make progress in both of these areas.  Our Affiliate Management Team is working with a number of Affiliates on product expansion initiatives, and seed-related products were meaningful contributors to our gross inflows in the first quarter.  Our Global Distribution platform had a strong quarter, and has reached profitability ahead of schedule. In addition, we remain focused on efficient capital management and increasing shareholder value through effective capital allocation strategies.  On March 15, shareholders approved the open market component of our share repurchase program, and we commenced opportunistic repurchases of our shares during the remainder of the quarter."

Mr. Bain concluded, "We have been active in cultivating relationships with high quality asset management boutiques.  Entrepreneurial asset managers understand and appreciate our unique approach and the value we bring to our Affiliate partnerships, and we are pleased with the quality and breadth of firms with which we have engaged."

A conference call and simultaneous webcast to discuss the OMAM results will be held at 10:00am EST / 3pm BST. 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: 60328973

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

http://event.on24.com/r.htm?e=1143935&s=1&k=570614F5895521929822B87E4EDB93E7 

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: 60328973

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

 

 

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