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OLD MUTUAL PLC - OM Asset Management Fourth Quarter and Full Year Results

Release Date: 04/02/2016 15:18
Code(s): OML     PDF:  
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OM Asset Management Fourth Quarter and Full Year Results

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

       Ref 85/16
       4 February 2016

       OM ASSET MANAGEMENT FOURTH QUARTER AND FULL YEAR RESULTS

       OM Asset Management plc (OMAM), the majority-owned subsidiary of Old Mutual plc, today reports
       its results for the fourth quarter and year ended 31 December 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 Fourth Quarter and Year Ended
       December 31, 2015

       -   Economic net income of $36.5 million ($0.30 per share) for the quarter, down (22.3)% compared
           to the 2014 period
       -   Year to date economic net income of $149.7 million ($1.24 per share) excluding extraordinary
           performance fee, and $161.1 million ($1.34 per share) including extraordinary performance fee,
           down (1.1)% and up 6.5%, respectively, compared to the 2014 period
       -   U.S. GAAP earnings of $36.9 million ($0.30 per share) for the quarter and $155.5 million ($1.29
           per share) for the year
       -   AUM of $212.4 billion at December 31, 2015, down (3.8)% from December 31, 2014
       -   Net client cash flows ("NCCF") for the quarter of $(3.2) billion with an annualized revenue impact
           of $(6.6) million; full year NCCF of $(5.1) billion with an annualized revenue impact of $18.9
           million
       -   OMAM's Board of Directors authorized a $150 million share repurchase program, subject to
           shareholder approval

       London - February 4, 2016 - OM Asset Management plc (NYSE: OMAM) today reports its results for
       the quarter ended December 31, 2015.


       “The strength and diversity of OMAM’s multiboutique franchise - both across our Affiliate group and
       within each firm - enabled OMAM to generate solid core earnings in 2015, notwithstanding
       exceptional market volatility in the second half of the year,” said Peter L. Bain, President and Chief
       Executive Officer of OMAM. “While a $(22.7) million decrease in quarterly performance fee revenue
       led to a decline in ENI for the fourth quarter, our management fee rate increased by over two basis
       points as we saw gross flows into higher margin products. Our net client cash flows of $(3.2) billion for
       the quarter were primarily attributable to outflows in the U.S. equity sub-advisory channel, sovereign
       wealth fund withdrawals, and higher than usual hard asset disposals; for the full year 2015, while we
       had negative net flows of $(5.1) billion, these flows produced annualized revenue growth of $18.9
       million, or 2.6% of our beginning of period run rate management fees. In a difficult market, our
       Affiliates continued to build on their long-term track records during the quarter, with AUM representing
       60%, 83%, and 92% of revenue outperforming benchmarks on a 1-, 3- and 5-year basis, respectively,
       as of December 31, 2015.


       “The first month of 2016 has presented the entire industry with challenges. However, we believe that
       our business is well positioned to withstand such market cycles, as our profit share model provides
       structural variability to our expenses. We remain committed to investing alongside our Affiliates in
       medium-term growth initiatives, and have made good progress to date. In order to enhance our
       capital management flexibility, our Board of Directors has authorized a $150 million share repurchase
       program, subject to shareholder approval.”

       Mr Bain concluded, ‘We see meaningful opportunities to deploy capital and build long term value for
       our shareholders through accretive transactions. Notwithstanding the volatile market conditions, we
       continue to be engaged with high quality boutique firms, evaluating potential partnerships against our
       strict investment criteria.’ ”

       OMAM will hold a conference call to discuss the results at 10am EST / 3pm GMT. 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: 85386080

       Link to webcast (register ahead of time or join immediately prior to the call):
       http://event.on24.com/r.htm?e=1100164&s=1&k=37DA7C978D2A54015A6597440E4C5AE5

       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 by:

       Dial-in Replay
       Toll Free Dial-in Number: +1 (855) 859-2056
       International Dial-in Number: +1 (404) 537-3406
       Conference ID: 85386080


       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 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


       Sponsor:
       Merrill Lynch South Africa (Pty) Ltd

       Joint Sponsor:
       Nedbank Capital



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