OMAM Financial and Operating Results
Old Mutual plc
Ref 18/17
2 February 2017
OMAM Reports Financial and Operating Results for the Fourth Quarter and Year Ended 31 December 2016
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 2016.
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, 2016
· U.S. GAAP earnings of $25.3 million ($0.21 per share) for the quarter, down (31.4)% compared to the 2015 period, and $126.4 million ($1.05 per share) for the year, down (18.7)% compared to the 2015 period
· Economic net income of $38.9 million ($0.33 per share) for the quarter, up 6.6% compared to the 2015 period, and $145.1 million ($1.21 per share) for the year, down (3.1)% compared to the 2015 period (excluding the non-recurring performance fee)
· AUM of $240.4 billion at December 31, 2016, up 13.2% from December 31, 2015
· Net client cash flows ("NCCF") for the quarter of $1.5 billion with an annualized revenue impact of $14.6 million; full year NCCF of $(1.6) billion with an annualized revenue impact of $11.0 million
· Completed a secondary public offering of 14.95 million ordinary shares on behalf of Old Mutual plc, with a concurrent repurchase of six million shares from Old Mutual plc, both at a price of $14.25 per share, in December 2016
"OMAM had a strong finish to 2016 from both a financial and strategic perspective, as successful execution of our growth strategy drove improved results across our business," said Peter L. Bain, OMAM's President and Chief Executive Officer. "A return to fundamental valuation in the equity market environment during the fourth quarter favored active asset management, and our equity-oriented Affiliates produced outperformance for their clients across a range of strategies. Net client cash flows for the fourth quarter were also strong at $1.5 billion, and while net flows for the full year 2016 were $(1.6) billion due largely to hard asset disposals and continued outflows in domestic large cap value products, gross flows into higher fee global, international equity and alternative products, including secondary strategies, resulted in annualized organic revenue growth of $14.6 million for the quarter and $11.0 million for the year.
"Our ability to deliver revenue growth from net client cash flows is a direct result of our differentiated multiboutique business model. Many of the strong-performing, in-demand strategies delivering incremental growth this year were developed through OMAM's collaborative engagement with Affiliates to diversify and expand their businesses, and in several cases were marketed by our Global Distribution team. In addition, our partnership with Landmark Partners is off to a strong start, which contributed to our earnings and net client cash flows during the quarter. Overall, 22.7% of our total gross sales of $29.9 billion in 2016 stemmed from OMAM's ongoing acquisition and strategic initiatives."
Mr. Bain concluded, "OMAM is well positioned to continue to increase shareholder value by supporting ongoing collaborative initiatives, investing in additional boutique asset management firms, and where appropriate, funding further share repurchases. The success of our secondary offering and share repurchase in December specifically enhanced the liquidity of our publicly traded stock and further enhanced overall value for our shareholders.""
Ends
The Company will hold a conference call and simultaneous webcast to discuss the results at 8am EST / 1pm GMT / 3pm SAT on 2 February 2017. The Company has also released an earnings presentation that will be discussed during the conference call. Please go to http://ir.omam.com to download the presentation. 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: 42646905
Link to Webcast:
http://event.on24.com/r.htm?e=1337515&s=1&k=BEDA88207889108D84BEB9C66BC106A8
Dial-in Replay:
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 at:
Toll Free Dial-in Number: +1 855 859-2056
International Dial-in Number: +1 404 537-3406
Conference ID: 42646905
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 18.9 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.
Old Mutual has announced a strategy of managed separation, which will entail separating its four businesses into standalone entities. The four businesses are:
Old Mutual Emerging Markets: An African financial services leader, providing long-term savings, protection, investment and lending to retail and corporate customers
Nedbank: Old Mutual owns a 54% stake in Nedbank, one of South Africa's top four banks, providing wholesale and retail banking, insurance and asset management for individuals and businesses
Old Mutual Wealth: a leading wealth management business in the UK and international markets
OM Asset Management: Old Mutual owns 51% in the New York Stock Exchange listed OM Asset Management which offers a diverse range of investment strategies and products for institutions, delivered worldwide through seven US-based boutiques.
For the year ended 31 December 2015, Old Mutual reported an adjusted operating profit before tax of £1.7 billion and had £304 billion of funds under management. For further information on Old Mutual plc and the underlying businesses, please visit the corporate website at www.oldmutual.com
This information is provided by RNS
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