OLD MUTUAL PLC - OM Asset Management Second Quarter Results

OM Asset Management Second Quarter Results

       OLD MUTUAL PLC
       ISIN CODE: GB00B77J0862
       JSE SHARE CODE: OML
       NSX SHARE CODE: OLM
       ISSUER CODE: OLOMOL


       Ref 564/15
       6 August 2015



       OM ASSET MANAGEMENT SECOND QUARTER RESULTS

       OM Asset Management (OMAM), the majority owned subsidiary of Old Mutual plc, today reports its
       results for the second quarter ended June 30, 2015.


       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 Second Quarter Ended June 30, 2015
       - Economic net income (excluding extraordinary performance fee) of $38.0 million ($0.32 per share)
         for the quarter and $75.3 million ($0.63 per share) for the year to date, up 11.4% and 13.1%
         respectively, compared to 2014 periods
       - Economic net income (including extraordinary performance fee) of $49.4 million ($0.41 per share)
         for the quarter and $86.7 million ($0.72 per share) for the year to date, up 44.9% and 30.2%
         respectively, compared to 2014 periods
       - Extraordinary performance fee of $11.4 million ($0.09 per share) net of associated expenses and
         taxes, related to certain alternative assets
       - U.S. GAAP earnings of $49.4 million ($0.41 per share) for the quarter and $83.6 million ($0.69 per
         share) for the year to date
       - AUM of $226.6 billion at June 30, 2015, up 5.4% from June 30, 2014
       - Net client cash flows ("NCCF") for the quarter of $0.8 billion yielding positive annualized revenue
         impact of $13.5 million


       London - August 6, 2015 - OM Asset Management plc (NYSE: OMAM) today reports its results for the
       second quarter ended June 30, 2015.


       “OMAM continues to execute across all elements of our growth strategy,” said Peter L. Bain, OMAM’s
       President and Chief Executive Officer.


       “Our core business generated strong results during the second quarter, driven by solid organic growth
       across our Affiliates. Our net client cash flows of $786 million for the quarter contributed $13.5 million
       to annualized revenue and, for the first six months, annualized revenue of $24.8 million from NCCF
       represented over 3% of beginning of year run rate management fees. In addition, during a period of
       flat returns in the equity markets, our Affiliates produced excellent relative investment performance; as
       of June 30, AUM representing 70%, 74% and 89% of revenue outperformed benchmarks on a 1-, 3-
       and 5-year basis. While we were pleased to realize a net extraordinary performance fee of $11.4
       million, we are particularly encouraged that our ENI per share excluding that fee grew 14.3% year-
       over-year, to $0.32.”




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       Mr. Bain continued, “With the completion of our secondary equity offering in June, which resulted in
       Old Mutual plc’s sale of 15,295,000 shares, we augmented the liquidity of our stock and expanded our
       public shareholder base. We also deepened the capabilities of our Global Distribution team this
       quarter with the addition of Trevedi Tewari in London, who will focus on relationships with institutional
       investors and consultants in the U.K. and Ireland, and Steve Coyle in Boston, who will further develop
       our subadvisory new business initiatives. Assets raised by our Global Distribution initiative were
       approximately $1 billion in the first six months of 2015.
       “In addition, our business remains well positioned to support our collaborative growth initiatives, as
       well as finance accretive investments in new Affiliates. We continue to make good progress in
       identifying and developing relationships with at-scale asset management boutiques who possess
       strong investment and executive talent and a vision to enhance and expand their businesses.”


       Ends”




       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


       Sponsor:
       Merrill Lynch South Africa (Pty) Ltd


       Joint Sponsor:
       Nedbank Capital


       Notes to Editors
       Old Mutual provides investment, savings, insurance and banking services to more than 17 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 2014, the Group reported adjusted operating profit before tax of £1.6 billion (on
       an IFRS basis) and had £319 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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