OLD MUTUAL PLC - Old Mutual plc trading update for the three months ended 31 March 2015

Release Date: 14/05/2015 08:00
Code(s): OML
 
Wrap Text
Old Mutual plc trading update for the three months ended 31 March 2015

OLD MUTUAL PLC
ISIN CODE: GB00B77J0862
JSE SHARE CODE: OML
NSX SHARE CODE: OLM
ISSURE CODE: OLOML
Old Mutual plc

Ref 368/15

14 May 2015
Old Mutual plc trading update for the three months ended 31 March 2015

Operational performance for the Group
    -    Gross sales of £7.3 billion, up 18%
             o    Old Mutual Emerging Markets up 20% at £2.7 billion
             o    Old Mutual Wealth up 16% at £4.6 billion
    -    Net client cash flow (NCCF) of £0.5 billion (Q1 2014: £(0.5) billion)
             o    Old Mutual Emerging Markets £0.6 billion
             o    Old Mutual Wealth £1.0 billion
             o    OM Asset Management £(0.1) billion
    -    Funds under management (FUM) up 10% to £351.4 billion
    -    Nedbank had a strong quarter: Non-Interest Revenue up 18% and Net Interest Income up 4%


Strategic developments
    -    Completed acquisition of Quilter Cheviot
    -    Completed acquisition of 23.3% of East African financial services company UAP; agreed to acquire a further 37.3%
    -    Completed disposal of Old Mutual Wealth businesses in France and Luxembourg


Julian Roberts, Group Chief Executive, commented:
“This has been a very good start to the year, with all of our businesses performing well with continued strategic progress. Old
Mutual is fully focused on operational execution as we look to secure the returns from the investments we have made to
transform the Group.

“We continue to grow our franchise in emerging markets. It is particularly pleasing to see strong sales from our largest market of
South Africa. Nedbank has had another excellent quarter with good growth in Non-Interest Revenue. Gross sales elsewhere in
Africa grew by 34%.

“Old Mutual Wealth has had a solid start to the year and we are seeing continuing benefits from the vertically-integrated model,
with Intrinsic and Quilter Cheviot performing well. Reflecting this, platform sales were up 15%, pension sales up 40%, ISA sales
up 20% and FUM were over £100 billion at the quarter end.

“OM Asset Management, despite a small net cash outflow in the quarter, generated positive annualised revenue as a result of
flows into high-margin global, non-U.S. and alternative products.

“While economic growth remains relatively weak in South Africa, our businesses continue to deliver good performance. We
believe our vertically-integrated UK model is well positioned to take advantage of the changes to the UK pension regime.
Overall we expect continued sound performance for the current year.”


Trading Update

Group highlights for the three months ended 31 March 2015
                                                                                       Q1 2014        % change
Gross sales (£m)                                                                       (constant      (constant      Q1 2014      % change (as
                                                                           Q1 2015     currency)      currency) (as reported)         reported)
Gross sales

Old Mutual Emerging Markets                                                 2,768           2,320          19%        2,300              20%
Old Mutual Wealth                                                           4,577           3,949          16%        3,949              16%
                                                                            7,345           6,269          17%        6,249              18%

Old Mutual Emerging Markets gross sales (Rm)                                                                          Q1 2014     % change (as
                                                                                                         Q1 2015 (as reported)        reported)
Retail Affluent                                                                                          16,588       14,464             15%
Mass Foundation                                                                                           2,268        2,059             10%
Corporate                                                                                                 9,673        5,165             87%
OMIG                                                                                                      9,224        8,046             15%

Total South Africa                                                                                       37,753       29,734             27%

Rest of Africa                                                                                            4,379        3,268             34%
Asia & Latin America                                                                                      7,136        8,292             (14%)

Total Old Mutual Emerging Markets                                                                        49,268       41,294             19%

Old Mutual Wealth gross sales (£m)                                                                                    Q1 2014     % change (as
                                                                                                         Q1 2015 (as reported)        reported)
Invest & Grow markets
UK Platform                                                                                               1,446       1,253              15%
UK Other                                                                                                    143         202              (29%)
International                                                                                               469         427              10%
Old Mutual Global Investors                                                                               2,612       2,476                5%
Quilter Cheviot                                                                                             196            -            100%

Total Invest & Grow                                                                                       4,866       4,358              12%
Manage for Value markets
Europe - open book                                                                                          373         356                5%
Heritage business                                                                                            63         177              (64%)

Total Manage for Value                                                                                      436         533              (18%)

Elimination of intra-Group sales                                                                            (725)       (942)            23%

Total Old Mutual Wealth                                                                                   4,577       3,949              16%

Gross flows and funds under management (£bn) 1


                                                                                                      Market and                Net flows as
                                                    FUM       Gross          Gross                         other          FUM % of opening
                                                1 Jan 15     inflows       outflows      Net flows    movements       31 Mar 15        FUM 2
Emerging Markets                                   50.3          2.8           (2.2)           0.6           2.0          52.9             5%
Nedbank                                            12.6          3.3           (2.9)           0.4           0.4          13.4             13%
Old Mutual Wealth
    Invest & Grow markets                          73.4          4.9           (3.6)           1.3          20.6          95.3             7%
    Manage for Value markets                       17.1          0.4           (0.5)          (0.1)         (1.4)         15.6             (2%)
    Eliminations                                   (8.0)        (0.7)          0.5            (0.2)         (0.4)         (8.6)            10%
OM Asset Management                               141.7          4.6           (4.7)          (0.1)          9.3         150.9               -
Non-US based affiliate                             32.3          0.6           (2.0)          (1.4)          1.0          31.9           (17%)
Core operations                                   319.4         15.9          (15.4)           0.5          31.5         351.4              1%

1    Refer to appendix for detailed footnotes

2    Annualised and calculated as a percentage of FUM at 31 December 2014


Overview
Old Mutual made a strong start to the year, with gross sales for the period of £7.3 billion, up 18% on the prior period.
NCCF was £0.5 billion. Excluding low margin outflows from our non-US affiliate, NCCF was £1.9 billion in the quarter.
FUM of £351 billion was up 10% from the start of the year due to appreciation in the equity markets, positive foreign
exchange movements and NCCF, as well as the inclusion (from 25 February 2015) of Quilter Cheviot.

Old Mutual Emerging Markets
Old Mutual Emerging Markets has delivered a strong performance in the quarter. FUM was up 5% to R951.9 billion due
to positive market movements and good NCCF. Following a large Corporate deal of R3.9 billion and increased asset
management flows into Old Mutual Investment Group (OMIG), NCCF was up 197% on the prior period to R11.3 billion.

Gross sales of R49.3 billion were up 19% on the comparative quarter. In South Africa, gross sales grew strongly by 27%.
In Mass Foundation, gross sales were up 10%, reflecting the continued growth of 2-in-ONE savings, the new funeral
products and the increased ownership stake in Old Mutual Finance (OMF). APE sales in Mass Foundation were boosted
by a change in the sales recognition criteria in order to be consistent with Retail Affluent’s treatment and to align to our
adviser remuneration model. We have also completed the roll-out of the new sales process to our tied advisers. Retail
Affluent grew gross sales by 15%, with strong performance in single premium sales, reflecting the continued popularity of
XtraMax and the Wealth offering. Non-covered sales were up 31%, largely through good flows into Private Client
Securities and good unit trust sales. We launched our Tax-Free Savings Account in South Africa on 1 March, and initial
customer reaction has been positive. Corporate achieved an increase in gross sales of 87% as it benefited from a large
asset management contract at Old Mutual Multi-Managers. Regular premium APE sales in Corporate were down
significantly in 2015 as the strong Group Assurance new business sales in Q1 2014 were not repeated.

Persistency across our South African businesses remained stable.

OMIG had a very good quarter, with gross sales of R9.2 billion, up 15%, and NCCF of R3.1 billion, against R1.3 billion in
the comparative period.

Gross sales in the Rest of Africa were up 34%, primarily due to higher asset management flows in Namibia, Zimbabwe
and Kenya. APE sales were up 36%, benefiting from strong single premium sales in Malawi and Swaziland, increased
credit life and retail mass sales in Zimbabwe, as well as increased corporate sales in West Africa.

Asia & Latin America experienced a decrease in gross sales of 14%, mainly due to the devaluation of the Colombian
peso. Asia & Latin America APE sales were up 41%, due to improved productivity and strong multi-trust sales in Mexico
and good bancassurance sales in India.

Property & Casualty continued to see better underwriting performance, particularly in its South African divisions, with only
modest catastrophe losses in the period. Results from Credit Guarantee Insurance Company have shown strong signs of
improvement.

Nedbank
Nedbank’s Net Interest Income increased 4.4% to R5.8 billion (Q1 2014: R5.6 billion), with average interest-earning
banking asset growth, including increased prudential liquid asset requirements, of 9.2% (Q1 2014: growth of 10.4%).
Non-Interest Revenue increased 18.1% to R5.3 billion (Q1 2014: R4.5 billion) as a result of good commission and fee
income, and growth in trading income. Commissions and fee income increases were led by ongoing client acquisitions,
inflation-related fee increases in retail and income from renewable energy transactions. The strong trading income
performance was also from increased client flows but is expected to moderate over the course of the year.

The credit loss ratio of 80bps (Q1 2014: 89bps) is at the low end of our through-the-cycle target range, reflecting the
quality of the loan book. Total advances growth of 16.0% (annualised) to R637.2 billion was mostly attributable to
banking advances increasing 10.8% (annualised). Deposits grew 15.9% (annualised) to R679 billion. Assets under
management increased 27.4% (annualised) to R226.3 billion.

The full text of Nedbank’s Q1 trading update, released on 11 May 2015 and also announced by Old Mutual, can be
accessed on Nedbank’s website at: http://www.nedbankgroup.co.za/quarterlyTradingUpdates.asp


Old Mutual Wealth
Old Mutual Wealth had a solid start to the year. Gross sales were £4.6 billion, up 16% on the first quarter of 2014,
boosted by the first time inclusion of sales from Quilter Cheviot and the positive impact of flows from Intrinsic. Platform
sales were up 15% to £1,446 million, with strong pension and ISA sales over the tax year end. During the quarter, over
10% of Platform sales came via Intrinsic. Gross flows into OMGI from the UK Platform were £565 million (Q1 2014: £347
million). In International, gross sales were 10% higher at £469 million, with good performances in the Far East and Latin
America. Europe open book sales were up 5%, due to strong sales in Italy following an expansion of our distribution
agreement with Fineco, partially offset by the impact of the disposals in the prior 12 months.

NCCF of £1.0 billion was down 9% on the comparative period. UK Platform NCCF of £553 million was 18% higher than
the same period of 2014. OMGI produced NCCF of £0.8 billion. In the quarter our managed portfolio fund ranges,
WealthSelect and Cirilium added £0.3 billion and £0.2 billion, respectively. The equivalent figure of £1.1 billion in the
prior year included a £0.2 billion segregated mandate inflow and £0.3 billion seeding of the Foundation fund range.
International’s NCCF of £128 million was 44% higher than the comparative quarter. NCCF in Italy was £178 million,
significantly higher than in the prior period.

Old Mutual Wealth FUM increased by 24% to £102.3 billion, largely as a result of the inclusion of £17.5 billion of FUM
from Quilter Cheviot. Excluding Quilter Cheviot, and the impact of the sale of France, FUM rose 5%, following positive
NCCF and market movements. OMGI FUM was £22.5 billion, up 7% from the start of the year. OMGI now manages 12%
of assets on the Platform, compared to 9% in Q1 2014, and represents 22% of Old Mutual Wealth’s FUM. The UK
Platform now administers £33.0 billion of assets.

Institutional Asset Management (IAM)

OM Asset Management’s FUM at the end of the quarter was up $3.2 billion to $224 billion. Market appreciation
accounted for $3.4 billion and there was a modest net outflow of $0.2 billion. The comparable quarter in 2014 had a net
outflow of $1.0 billion. There were gross outflows of $0.3 billion from property realisations (Q1 2014: $0.3 billion). NCCF
generated in the period represents annualised revenues of $11.3 million given the inflows in higher-margin products such
as global/non-U.S. and alternative products. The full text of OMAM’s Q1 2015 earnings announcement, which will be
released at 8.00am EST on 14 May 2015, can be found on OMAM’s website: http://ir.omam.com/investor-relations/news/

Our non-U.S. based affiliate saw outflows in the quarter of $(2.0) billion, an improvement on the comparative quarter of
$(2.6) billion.

Bermuda
Hedging strategies are under constant review and the approach to manage the 120% Capital Return Guarantees may be
expected to evolve as the 10 year anniversary period approaches in 2017 and 2018. Going forward information on
Bermuda will be reported as part of the half-year and full-year results.

Cash, liquidity and Financial Groups Directive (FGD)
At 31 March 2015 and following the completion of the Quilter Cheviot acquisition, the Group’s net debt stood at £1.2
billion, after deducting holding company cash of £433 million. During the quarter, £114 million of debt was raised by our
South African life subsidiary OMLAC(SA).

The Group’s regulatory capital surplus, calculated under the EU Financial Groups Directive, was £1.4 billion at 31 March
2015 (31 December 2014: £2.1 billion as submitted to the PRA in April 2015), reflecting the 2015 February Board
approval of the 2014 final ordinary dividend, the completion of the Quilter Cheviot acquisition and the payment for the
initial stake in UAP in Kenya. This represents a statutory cover ratio of 142%. Each of the Group’s subsidiaries remains
well capitalised.

Broad-Based Black Economic Empowerment (BBBEE) schemes
The Nedbank and Mutual & Federal BBBEE schemes matured on 1 January 2015 while the Old Mutual South Africa
BBBEE scheme matured on 1 May 2015. The value that remains within the staff and community schemes will continue
to be used to support and develop critical transformation initiatives. The South African businesses also continue to
engage with our empowerment partners on the continuation of our relationship post maturity of the BBBEE deal.

Further detail can be found in the respective media releases on the Nedbank and OMSA websites
(http://www.nedbankgroup.co.za/mediaSENS.asp and   http://www.oldmutual.co.za/about-us/media-centre/press-
releases.aspx)

Outlook
While economic growth remains relatively weak in South Africa, our businesses continue to deliver good performance.
We believe our vertically-integrated UK model is well positioned to take advantage of the changes to the UK pension
regime. Overall we expect continued sound performance for the current year.


Enquiries

Investor Relations

Patrick Bowes                                   UK                +44 20 7002 7440
Dominic Lagan                                   UK                +44 20 7002 7190
Sizwe Ndlovu                                    SA                +27 11 217 1163

Media

William Baldwin-Charles                                           +44 20 7002 7133
                                                                  +44 7834 524 833

Notes to this announcement
      -    All figures refer to core continuing operations. Core continuing operations exclude the results of the Bermuda business, which
           is classified as non-core.
      -    Constant currency figures are calculated by translating local currency figures for the prior period at the prevailing exchange
           rates for the period under review.
      -    Life assurance APE sales are calculated as the sum of (annualised) new regular premiums and 10% of new single premiums
           written in the period.

Cautionary statement
This announcement contains forward-looking statements relating to certain of Old Mutual plc’s plans and its current goals and
expectations relating to its future financial condition, performance and results. By their nature, all forward-looking statements involve risk
and uncertainty because they relate to future events and circumstances that are beyond Old Mutual plc’s control, including, among other
things, global, UK and South African domestic, economic and business conditions, market-related risks such as fluctuations in interest
rates and exchange rates, policies and actions of regulatory authorities, the impact of competition, inflation, deflation, the timing and
impact of other uncertainties, future acquisitions or combinations within relevant industries, as well as the impact of tax and other
legislation and regulations in territories where Old Mutual plc or its affiliates operate.
As a result, Old Mutual plc’s actual future financial condition, performance and results may differ materially from the plans, goals and
expectations set out in its forward-looking statements. Old Mutual plc undertakes no obligation to update any forward-looking
statements contained in this announcement or any other forward-looking statements that it may make.

Sterling exchange rates


                                                                                Appreciation /                            Appreciation /
                                                                            (depreciation) of local                   (depreciation) of local
                                                     Q1 2015*   Q1 2014*          currency              FY 2014             currency
                           Average Rate               17.80      17.95               1%                  17.87                   -
South African Rand
                           Closing Rate               18.02      17.55               (3%)                18.00                   -
                           Average Rate                1.52       1.66               8%                   1.65                 8%
USD
                           Closing Rate                1.48       1.67               11%                  1.56                 5%
* Average rate is for the three months to 31 March



Notes to editors
A Financial Disclosure Supplement relating to the Company’s results can be found on our website. This contains key financial data for
the three months ended 31 March 2015.

Management will host a conference call for investors and analysts at 9.00am BST (10.00am South African time) on 14 May 2015.

Investors and analysts who wish to participate in the conference call should dial the following numbers quoting conference pin code
76968864#:

UK/International                                      +44 20 3139 4830
US                                                    +1 718 873 9077
South Africa                                          +27 21 672 4008

A replay facility will be available until midnight on 28 May 2015 on the following number, quoting pin code 657296#:

UK/International                                      +44 20 3426 2807

Copies of this Trading Update, together with biographical details of the executive directors of Old Mutual plc, are available in electronic
format to download from the Company’s website at www.oldmutual.com.



Trading update – Appendix

Emerging Markets data tables for the three months ended 31 March 2015


                                                                   
Gross sales and funds under management (Rbn)1


                                                                                                                                Market and
                                                          FUM                                                                        other            FUM
                                                      1 Jan 15      Gross sales ²             Outflows        Net flows        movements ³        31 Mar 15
Retail Affluent                                          123.8               16.6                (14.4)            2.2                 9.1            135.1
Mass Foundation 4                                            -                2.3                 (1.2)            1.1                (1.1)              -
Corporate                                                 71.0                9.7                 (7.5)            2.2                (1.4)            71.8
OMIG                                                     518.6                9.2                 (6.1)            3.1                27.8            549.5
Property & Casualty                                        2.5                  -                    -                -               (0.2)             2.3
Total South Africa                                       715.9               37.8                (29.2)             8.6               34.2            758.7
Rest of Africa                                            62.2                4.4                 (2.8)            1.6                 1.4             65.2
Asia & Latin America                                     126.8                7.1                 (6.0)            1.1                 0.1            128.0
Total Old Mutual Emerging 
Markets                                                  904.9               49.3                (38.0)            11.3               35.7            951.9




                                                                                                                                Market and
                                                          FUM                                                                        other            FUM
                                                      1 Jan 14      Gross sales ²             Outflows        Net flows        movements ³        31 Mar 14
Retail Affluent 5                                         99.8                14.5                (12.7)             1.8              3.8            105.4
Mass Foundation 4                                             -                 2.1                 (1.0)            1.1              (1.1)              -
Corporate 5                                               51.9                  5.2                 (6.6)           (1.4)             3.3             53.8
OMIG                                                    506.9                   8.0                 (6.7)            1.3              2.1            510.3
Property & Casualty                                        2.9                    -                    -                -             (0.7)            2.2
Total South Africa                                      661.5                 29.8                (27.0)             2.8              7.4            671.7
Rest of Africa                                            53.9                  3.3                 (3.4)           (0.1)             1.2             55.0
Asia & Latin America                                    125.4                   8.3                 (7.2)            1.1              (1.7)          124.8
Total Old Mutual Emerging
Markets                                                 840.8                 41.3                (37.6)             3.8              6.9            851.5

¹ FUM shown on an end manager basis
2 Gross sales are cash inflows for the period and thus include regular premium flows for business written in prior periods

³ Includes the impact of foreign exchange movement on FUM not denominated in ZAR

4 Mass Foundation gross sales are recorded by segment but all FUM are managed by OMIG

5 From HY 2014, Acsis and Old Mutual Multi-Manager FUM is recorded within Corporate; previously this was recorded within Retail Affluent. Comparatives
have been restated (Q1 2014: R52.3 billion)



Covered sales - APE (Rm)

                                                Single premium APE                  Regular premium APE                            Total APE

By cluster:
                                           Q1 2015         Q1 2014 % change      Q1 2015      Q1 2014 % change          Q1 2015     Q1 2014 % change
Retail Affluent 3                               439           286      53%           344          311         11%            783         597         31%
Mass Foundation 1, 2                               1              1         -        760          634         20%            761         635         20%
Corporate                                       184           154      19%             78         298         (74%)          262         452        (42%)

Total South Africa                              624           441      41%         1,182        1,243          (5%)       1,806        1,684          7%
Rest of Africa                                    47           32      47%           183          137         34%            230         169         36%

Asia & Latin America                              57           97      (41%)         409          233         76%            466         330         41%
Total Old Mutual Emerging
Markets                                         728           570      28%         1,774        1,613         10%         2,502        2,183         15%




                                                Single premium APE                  Regular premium APE                            Total APE
By product:                                Q1 2015         Q1 2014 % change      Q1 2015      Q1 2014 % change          Q1 2015     Q1 2014 % change
Savings                                       662             509      30%          963          771      25%            1,625       1,280      27%
Protection 2                                       5              -   100%           811          842          (4%)          816         842         (3%)
Annuity                                           61           61           -            -            -            -          61          61                -
Total Old Mutual Emerging
Markets                                         728           570      28%         1,774        1,613         10%         2,502        2,183         15%
¹ From January 2015, Mass Foundation conformed the recognition basis for APE sales to that of Retail Affluent by defining APE as business where the first
premium is confirmed as paid where previously APE was stated as issued business net of cancellations in the three months since inception. The impact of
this change on Q1 2015 results is +R75 million

² OMF credit life sales are included within Mass Foundation protection sales (R70 million in Q1 2015 and R49 million in Q1 2014)

3 From January 2015, regular premiums include repeat premiums. These were previously recorded as single premiums. The impact of the change was to
increase regular premium APE by R22 million and reduce single premiums accordingly




Non-covered sales (Rm)

                                                   Unit trust sales                Other non-covered sales                Total non-covered sales
                                           Q1 2015         Q1 2014 % change      Q1 2015      Q1 2014 % change          Q1 2015     Q1 2014 % change
South Africa ¹                                11,160         7,975     40%         17,982       12,389        45%         29,142      20,364         43%
Rest of Africa                                 1,812         1,594      14%         1,257          590       113%          3,069        2,184        41%
Asia & Latin America 2                         6,161         6,828     (10%)            -            -           -         6,161        6,828       (10%)
Total Old Mutual Emerging
Markets                                       19,133        16,397     17%         19,239       12,979        48%         38,372      29,376         31%

¹ Old Mutual International life sales are not included in the OMEM non-covered sales as these sales are reported in Old Mutual Wealth (UK). These were
R738 million in the current period (R1,163 million for Q1 2014)

² AIVA international sales are not included in the OMEM non-covered sales, as these sales are reported in Old Mutual Wealth (UK). These were R1,486
million in the current period (R649 million for Q1 2014)



Old Mutual Wealth data tables for the three months ended 31 March 2015


Gross sales and funds under management (£bn)


                                                                                                                            Market and
                                                           FUM                                                                   other              FUM
                                                       1 Jan 15       Gross sales            Outflows       Net flows       movements           31 Mar 15
Invest & Grow markets
UK Platform ¹                                              30.8                    1.4            (0.8)            0.6                1.6           33.0
UK Other ²                                                  6.0                    0.2            (0.5)           (0.3)               0.3            6.0
International                                              15.6                    0.5            (0.4)            0.1                0.6           16.3
Old Mutual Global Investors ³                              21.0                    2.6            (1.8)            0.8                0.7           22.5
                    4
Quilter Cheviot                                                -                   0.2            (0.1)            0.1              17.4            17.5
Total Invest & Grow                                        73.4                    4.9            (3.6)            1.3              20.6            95.3
Manage for Value markets
Europe - open book 5                                        6.7                    0.4            (0.2)            0.2               (1.9)           5.0
                        6
Heritage business                                          10.4                       -           (0.3)           (0.3)               0.5           10.6
Total Manage for Value                                     17.1                    0.4            (0.5)           (0.1)              (1.4)          15.6
                                        7
Elimination of intra-Group assets                           (8.0)                  (0.7)           0.5            (0.2)              (0.4)          (8.6)

Total Old Mutual Wealth                                    82.5                    4.6            (3.6)            1.0              18.8           102.3




                                                                                                                            Market and
                                                           FUM                                                                   other              FUM
                                                       1 Jan 14       Gross sales            Outflows       Net flows       movements           31 Mar 14
Invest & Grow markets
UK Platform ¹                                              27.3                    1.3            (0.8)            0.5                0.3           28.1
UK Other ²                                                  5.6                    0.2            (0.2)                 -            (0.1)           5.5
International                                              15.0                    0.4            (0.3)            0.1                  -           15.1
Old Mutual Global Investors ³                              16.0                    2.5            (1.4)            1.1                0.3           17.4
Total Invest & Grow                                        63.9                    4.4            (2.7)            1.7                0.5           66.1
Manage for Value markets
Europe - open book 5                                        6.6                    0.3            (0.2)            0.1                  -            6.7
Heritage business 6                                        15.4                    0.2            (0.5)           (0.3)               0.3           15.4
Total Manage for Value                                     22.0                    0.5            (0.7)           (0.2)               0.3           22.1
                                        7
Elimination of intra-Group assets                           (7.4)                  (1.0)           0.6            (0.4)              (0.2)          (8.0)
Total Old Mutual Wealth                                    78.5                    3.9            (2.8)            1.1                0.6           80.2

¹ UK Platform FUM excludes intra-Group assets from our International business of £1.4 billion at 31 March 2015 (31 March 2014: £1.5 billion)
² Includes Protection, Series 6 pensions and UK Institutional business
3 OMGI FUM includes £0.2 billion of shareholder assets (Q1 2014: £0.1 billion)
4 The acquisition of Quilter Cheviot was completed on 25 February 2015. Market and other movements include £17.5 billion of acquired FUM
5 Includes business written in Italy and divested businesses in France & Luxembourg (sold in February 2015) and Poland (sold in May 2014)
6 Includes UK Heritage, Switzerland and divested businesses in Germany, Austria and Liechtenstein (sold in Q4 2014)
7 The elimination represents the removal of double-counting of assets and flows managed by OMGI on behalf of other Old Mutual Wealth businesses. In Q1
2014, there was £0.3 billion seeding of the Foundation fund range



Institutional Asset Management
Fund Mix ($bn)



                                                                                                       31 Mar 15           31 Dec 14        % change
U.S. Equity                                                                                                85.5                87.3             (2%)
Global/non-U.S. Equity                                                                                     88.1                84.0              5%
U.S. Fixed income                                                                                          15.3                15.2              1%

Alternative, real estate & timber                                                                          35.1                34.3              2%

OM Asset Management                                                                                       224.0               220.8              1%

Non-U.S. affiliate (Global Fixed income/currency)                                                          47.3                50.3             (6%)

Total FUM                                                                                                 271.3               271.1                  -


Nedbank data table for the three months ended 31 March 2015

Nedbank key performance indicators 1


                                                                                                        Q1 YTD              Q1 YTD
                                                                                                          2015                2014          % change
Net Interest Income (Rm)                                                                                 5,811               5,566              4%
Non-Interest Revenue (Rm)                                                                                5,318               4,505             18%


Net interest margin                                                                                     3.41%               3.57%
Credit loss ratio                                                                                       0.80%               0.89%


Total advances (Rbn) 2                                                                                     637                 613             16%
                                      2
Common equity tier 1 capital ratio                                                                      11.7%                11.6%
1
    As reported by Nedbank
2
    Comparative at 31 December 2014. Percentage change is on an annualised basis


Gross flows and funds under management for the three months ended 31 March 2014

Gross flows and funds under management (£bn)

                                                                                                                                        Net flows
                                                                                                         Market and                      as % of
                                                   FUM        Gross          Gross                            other               FUM opening
                                               1 Jan 14      inflows       outflows        Net flows     movements            31 Mar 14    FUM 1
Emerging Markets                                   48.3          2.3               (2.1)        0.2                 0.1              48.6        2%
Nedbank                                            11.7          3.1               (2.8)        0.3                 0.1              12.1       10%
Old Mutual Wealth
     Invest & Grow markets                         63.9          4.4               (2.7)        1.7                 0.5              66.1       11%
     Manage for Value markets                      22.0          0.5               (0.7)       (0.2)               0.3               22.1       (4%)
     Eliminations                                  (7.4)         (1.0)             0.6         (0.4)               (0.2)          (8.0)         22%
OM Asset Management                               120.0          3.4               (3.9)       (0.5)                2.3          121.8          (2%)
Non-U.S. based affiliate                           35.3          0.4               (2.0)       (1.6)                0.7              34.4      (18%)
Core operations                                   293.8         13.1           (13.6)          (0.5)                3.8          297.1          (1%)
1    Annualised and calculated as a percentage of FUM at 31 December 2013


Lead Sponsor:
Merrill Lynch South Africa (Pty) Ltd

Joint Sponsor:
Nedbank Capital



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