4 May 2017 13:15
Old Mutual plc
Ref 95/17
4 May 2017
OMAM Reports Financial and Operating Results for the first Quarter Ended 31 MARCH 2017
OM Asset Management plc (OMAM), the majority-owned subsidiary of Old Mutual plc, today reports its results for the first quarter ended 31 March 2017.
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, 2017
· U.S. GAAP EPS of $0.19 per share, down (26.9)% from the comparative quarter in 2016
· U.S. GAAP earnings of $21.4 million, down (30.5)% from the comparative quarter in 2016
· Economic net income EPS of $0.34 per share, an increase of 25.9% from the comparative quarter in 2016
· ENI of $38.9 million, an increase of 21.6% from the comparative quarter in 2016
· AUM of $249.7 billion at March 31, 2017, an increase of 3.9% from December 31, 2016 and 14.5% from March 31, 2016
· Net client cash flows ("NCCF") for the quarter of $(2.5) billion yielding an annualized revenue impact of $0.8 million
· Increase in quarterly dividend to $0.09 per share (up 12.5%)
"OMAM delivered strong operating performance and financial results during the first quarter," said Peter L. Bain, OMAM's President and Chief Executive Officer. "Assets under management grew 4% from year-end, driven by solid investment performance in a rising market environment, particularly in areas such as emerging markets, ACWI ex-US and domestic equities. We also produced positive revenue flows of $0.8 million resulting from continued demand for higher fee non-US, emerging markets and alternative products, notwithstanding overall AUM outflows of $(2.5) billion. Our ENI operating margin improved by 269 bps to 36% compared to Q1'16, as ENI revenue growth of 30% outpaced ENI operating expense growth of 18%, including the impact of Landmark. ENI per share of $0.34 was up 26% year-over-year, reflecting our operational strength, contributions from the Landmark acquisition, and the benefits of our share repurchase in Q4'16. We are pleased with Landmark's contribution to both flows and profit.
"Our results reflect the consistent execution of our growth strategy and the increasing benefits generated by its components. Many of the higher-fee, in-demand investment strategies generating inflows were the result of collaborative organic growth initiatives between OMAM and our Affiliates, and certain of these products are now generating interest in markets around the world. The Global Distribution pipeline is strong, with search activity across a range of Affiliate products. We also continue to cultivate relationships with entrepreneurial boutique asset management firms seeking a partnership that enables them to enhance and accelerate their long-term growth and stability."
Mr. Bain concluded, "In addition, Old Mutual plc took a significant step in its managed separation process during the first quarter by entering into an agreement to sell 24.95% of OMAM's shares to HNA Capital US.""
Ends
OMAM will hold a conference call and simultaneous webcast to discuss the results at 10am EST / 3pm BST / 4pm SAT on 4 May 2017. OMAM has also released an earnings presentation that will be discussed during the conference call. Please go to http://ir.omam.com to download the presentation. To listen to the call or view the webcast, participants should:
Dial-in:
US Toll Free Dial-in Number: +1 877 201-0168
International Dial-in Number: +1 647 788-4901
Conference ID: 84182431
Link to Webcast:
http://event.on24.com/r.htm?e=1383386&s=1&k=28559B201C8A7773FCC280D63518E706
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:
US Toll Free Dial-in Number: +1 855 859-2056
International Dial-in Number: +1 404 537-3406
Conference ID: 84182431
Enquiries
External communications
Patrick Bowes +44 20 7002 7440
Investor relations
Dominic Lagan +44 20 7002 7190
Deward Serfontein +27 82 810 5672
Media
William Baldwin-Charles +44 20 7002 7133
+44 7834 524833
Notes to Editors
Old Mutual
Old Mutual provides investment, savings, insurance and banking services to 19.4 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 is executing its strategy of managed separation, which will entail separating its four businesses into standalone entities. The four businesses are:
Old Mutual Emerging Markets: an attractive business with a dominant position in South Africa, well-placed to capitalise on sub-Saharan African growth as a diversified financial services provider with strong operations in key East and West African markets.
Nedbank: one of South Africa's four largest banks with very strong corporate, commercial and property finance franchises, and a growth opportunity in the retail market, as well as pan-African optionality through its stake in Ecobank Transnational Inc (ETI).
Old Mutual Wealth: a leading, integrated wealth management business, focused on the UK upper and middle market, with strong prospects in a rapidly growing £3 trillion market.
OM Asset Management: an institutionally focussed, multi-boutique asset management business, delivering strong, diversified growth in attractive asset classes through organic initiatives and acquisitions.
For the year ended 31 December 2016, Old Mutual reported an adjusted operating profit before tax of £1.7 billion and had £395 billion of funds under management. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutualplc.com