Wrap Text
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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