2 Nov 2016 11:36
Old Mutual plc
Ref 533/16
2 November 2016
OMAM Reports Financial and Operating Results for the third Quarter Ended 30 september 2016
OM Asset Management plc (OMAM), the majority-owned subsidiary of Old Mutual plc, today reports its results for the third quarter ended 30 September 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 Third Quarter Ended September 30, 2016
· U.S. GAAP earnings of $34.0 million ($0.28 per share) for the quarter and $101.1 million ($0.84 per share) for the year to date, down (2.9)% and (14.8)%, respectively, compared to 2015 periods
· Economic net income of $38.0 million ($0.32 per share) for the quarter and $106.2 million ($0.89 per share) for the year to date, a change of 0.3% and (6.2)%, respectively, compared to 2015 periods (excluding the non-recurring performance fee)
· AUM of $234.2 billion at September 30, 2016, an increase of 10.3% from December 31, 2015, including acquisition of Landmark Partners
· Net client cash flows ("NCCF") for the quarter of $(2.6) billion yielding an annualized revenue impact of $(7.5) million; year to date NCCF of $(3.1) billion yielding an annualized revenue impact of $(3.6) million
"In the third quarter, we were pleased to close our investment in Landmark Partners, which meaningfully enhances the diversity of our product offerings to include a range of actively managed secondary private equity, real estate and real asset investment strategies with broad appeal to institutional investors around the globe," said Peter L. Bain, OMAM's President and Chief Executive Officer. "Looking ahead, we are confident in our Affiliates' ability to deliver value to their clients. By maintaining their investment disciplines during a period of challenging performance for active equity managers, our Affiliates are positioned for improved investment results as markets focus on underlying company fundamentals, rather than a search for yield or uncorrelated macroeconomic factors. While our third quarter net client cash flows of $(2.6) billion resulted in a $(7.5) million decrease to annualized revenue this quarter, we are confident that our pipeline of net client cash flows will continue to build over the medium term, as our Affiliates and our Global Distribution team have been very active in search and fundraising activity."
Mr. Bain concluded, "Our efficient capital structure supports and enhances our growth initiatives and provides ample internal and external liquidity for new investments, as well as additional share repurchases and the funding of our Seed Capital and DTA obligations to our Parent as part of our Managed Separation process. 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 / 2pm GMT / 4pm SAST on 2 November 2016. The earnings presentation will be 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: +1 (877) 201-0168
International Dial-in Number: +1 (647) 788-4901
Conference ID: 79771803
Link to Webcast:
http://event.on24.com/r.htm?e=1264710&s=1&k=813908C191CF8D44F0BE28132970F38F
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: +1 (855) 859-2056
International Dial-in Number: +1 (404) 537-3406
Conference ID: 79771803
Enquiries
External communications
Patrick Bowes UK +44 20 7002 7440
Investor relations
Dominic Lagan UK +44 20 7002 7190
Sizwe Ndlovu SA +27 11 217 1163
Media
William Baldwin-Charles +44 20 7002 7133
+44 7834 524833
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.
Old Mutual has announced a strategy of managed separation, which will entail separating its four businesses into standalone entities. The four businesses are:
Old Mutual Emerging Markets: An African financial services leader, providing long-term savings, protection, investment and lending to retail and corporate customers
Nedbank: Old Mutual owns a 54% stake in Nedbank, one of South Africa's top four banks, providing wholesale and retail banking, insurance and asset management for individuals and businesses
Old Mutual Wealth: a leading wealth management business in the UK and international markets
OM Asset Management: Old Mutual owns 65.8% in the New York Stock Exchange listed OM Asset Management which offers a diverse range of investment strategies and products for institutions, delivered worldwide through seven US-based boutiques.
For the year ended 31 December 2015, Old Mutual reported an adjusted operating profit before tax of £1.7 billion and had £304 billion of funds under management. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutual.com