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OLD MUTUAL PLC - OM Asset Management Third Quarter Results

Release Date: 05/11/2014 09:01
Code(s): OML     PDF:  
Wrap Text
OM Asset Management Third Quarter Results


       OLD MUTUAL PLC
       ISIN CODE: GB00B77J0862
       JSE SHARE CODE: OML
       NSX SHARE CODE: OLM
       ISSUER CODE: OLOMOL
       Old Mutual plc
       Ref 277/14


       5 November 2014


       OM ASSET MANAGEMENT THIRD QUARTER RESULTS

       OM Asset Management (OMAM), the majority owned subsidiary of Old Mutual plc, today reports its
       results for the third quarter and nine months ended September 30, 2014.


       The following is an extract from the OM Asset Management announcement. Access to the full
       announcement is available via the Old Mutual corporate website – www.oldmutual.com


       “OMAM Reports Financial and Operating Results for the Third Quarter Ended September 30,
       2014
       -   Economic net income of $37.6 million ($0.31 per share) for the quarter, up 19% from the
           comparative quarter in 2013
       -   Nine month economic net income of $104.3 million ($0.87 per share), up 16% from the
           comparative period in 2013
       -   U.S. GAAP earnings of ($1.7) million for the quarter and $17.4 million for the nine months ended
           September 30, 2014
       -   AUM of $214 billion at September 30, 2014, up 16% from September 30, 2013
       -   Net client cash flows of $3.1 billion for the quarter and $5.7 billion for the year-to-date
       -   Partial exercise of IPO Green Shoe for 2,231,375 shares


       London – November 5, 2014 – OM Asset Management plc (NYSE: OMAM) today reports its results
       for the third quarter and nine months ended September 30, 2014.


       “Our Affiliates – and our business more broadly – generated strong results in a volatile equity market
       during the third quarter,” said Peter L. Bain, President and Chief Executive Officer of OMAM. “Led by
       a 21% increase in average assets under management, ENI Revenue increased 23%, to $159 million,
       and pre-tax economic net income grew 23%, to $49.5 million, in the third quarter of 2014 compared to
       the third quarter of 2013. Likewise, our ENI operating margin before Affiliate key employee
       distributions increased from 36% to 38% during this period.




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      “Our investment products continue to outperform their benchmarks across a range of asset classes
       and investment styles. On a revenue-weighted basis, approximately 66%, 70%, and 81% of our
       products are outperforming their benchmarks over a 1-, 3- and 5-year period, respectively. During the
       quarter, our emerging markets and global equities products performed particularly well, and also
       continue to attract significant net client cash flows. Our third quarter net client cash flows of $3.1
       billion generated annualized revenue impact of $19.1 million, the highest level in the last eleven
       quarters.”


       Mr. Bain continued, “With interests aligned through equity ownership and profit sharing with our
       Affiliates, we are true partners in identifying and executing upon opportunities to accelerate the growth
       of our Affiliates’ businesses. We continue to make excellent progress in our collaborative growth
       initiatives, with approximately $1.0 billion in gross client cash flows in the quarter into products
       supported by our seed or growth capital initiatives. In addition, our Global Distribution platform
       continues to generate strong flows, with $1.8 billion of new fundings during the quarter, and a total of
       $4.9 billion raised thus far in 2014. We will also seek growth opportunities through partnerships with
       at-scale asset management boutiques with strong investment and executive talent and a vision to
       enhance and expand their businesses in partnership with OMAM.”


       Mr. Bain concluded, “We are very pleased to have undertaken our initial public offering on October 8,
       and the subsequent partial exercise of the Green Shoe. We remain focused on generating long-term
       value for our shareholders through the consistent execution of our growth strategy.”


       Ends




       Enquiries
       External communications
       Patrick Bowes                    UK      +44 20 7002 7440
       Investor relations
       Dominic Lagan                    UK      +44 20 7002 7190

       Media
       William Baldwin-Charles                  +44 20 7002 7133
                                                +44 7834 524833
       Sponsor:
       Merrill Lynch South Africa (Pty) Ltd


       Joint Sponsor:
       Nedbank Capital




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       Notes to Editors
       Old Mutual provides investment, savings, insurance and banking services to more than 16 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 2013, the Group reported adjusted operating profit before tax of £1.6 billion (on
       an IFRS basis) and had £294 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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