OMGI Continues to Deliver Positive Global Growth


Old Mutual Global Investors continued to deliver a solid performance during Q1 2015.     

Julian Ide, CEO of Old Mutual Global Investors comments:  "Old Mutual Global Investors continued to deliver solid returns for its clients despite the challenging market conditions that prevailed in the UK as a result of the nervousness that existed in the run up to the general election.  Whilst many in our industry experienced outflows from their UK equities funds, we continued to see inflows into the UK equity large cap range.  We are now confident that investors will be reassured about the outlook for the UK economy following the appointment of a majority government and will once again invest in high quality funds.

"I believe that these results demonstrate that we are growing a truly global business.  Our investment last year in expanding our Asian and Latin America footprint has proved to be beneficial and is helping diversify income streams.  By expanding the range of investment capabilities we have broadened our product offering.  We have also reduced our reliance on external asset managers by insourcing client assets on a further two funds.  This development means that we are well placed to meet our key aim of delivering attractive, high performing investment solutions for a global client base and sustainable profits for Old Mutual Wealth."

Financial highlights:

  • Gross sales up 5% to £2.6 billion (2014: £2.5 billion).
  • Net Client Cash Flow (‘NCCF’): down 27% to £0.8 billion (2014: £1.1 billion, with Q1 2014 including a £180 million segregated mandate inflow and £305 million seeding of the Old Mutual Foundation fund range.
  • FUM up 7% to £22.5 billion (December 2014: £21.0 billion).
  • 72% of gross sales delivered from external third parties.

Investment:

  • Continued impressive investment performance - 60% of core funds in top quartile and 84% above median over 3 years¹.
  • Continued expansion of investment capabilities - John Peta appointed Head of Emerging Market Debt, as well as the arrival of four members of the Rates and LDI team (Russ Oxley and Josh Heming arrived in April).
  • The Cirilium fund range, which is now fully embedded in the Investment Solutions team, received £0.2 billion of net sales via Intrinsic.  With the inclusion of this fund range, Old Mutual Global Investors was positioned 4th for multi-manager FUM in the Pridham Report for Q1 2015 and 2nd and 6th respectively for gross and net multi-manager sales.
  • Successful insourcing of US$100 million² Old Mutual Greater China Equity Fund.  Preparations made for the April 2015 insourcing of the US$150 million³ Old Mutual Local Currency Emerging Market Debt Fund.

International expansion:

  • The Asian Equities team, headed by Josh Crabb, is now operating from Hong Kong. This is the first investment team to be operating outside of London. Having 'local' manufacturing capabilities will be a key driver to Old Mutual Global Investors success in Asia.
  • Simon McKinnon OBE appointed as Asia Strategy Adviser.
  • Inaugural Latin American conference held in Uruguay - over 70 LatAm clients attended event at which 8 senior managers from London were present.

Strategic objectives:

  • Substantial progress undertaken towards enhancing the Global Financial Institution Strategy under the leadership of Allan MacLeod, Head of International Distribution.
  • WealthSelect added £0.3 billion of net inflows via the UK platform in Q1 2015 compared to a quarterly rate of £0.2 billion over 2014.
  • Old Mutual Global Investors now represents 22% of the total Old Mutual Wealth FUM.
    • Continue to feature in top 10 UK Retail Sales Tables of the Pridham Report, positioned 9th for gross sales and 7th for net sales in Q1 2015¹.  The business was also ranked 7th for Q1 2015 net onshore and offshore sales, 6th for sales via Life and Pensions and 4th via Fund of Funds.
    • Award winning momentum continues - over 15 awards won so far this year.

Media Contacts:

Vee Montebello, Head of PR and Internal Communications   020 7 332 7687

Notes to Editors:

1 AUM GROWTH BY FUND:

 

AUM growth millions (GBP)

 

Snapshot of OMGI funds increasing AUM during 2014

31 Dec 14

31 March 15

INCREASE %

OM Asian Equity Fund

62

130

110

OM Europe (ex UK) Smaller Companies Fund

35

60

71

OM Global Equity Absolute Return Fund

1,805

2,278

26

OM Global Equity Fund

186

233

25

OM North American Equity Fund

656

806

23

Cirilium

2,025

2,330

15

OM Monthly Income High Yield Bond Fund

49

56

14

OM UK Alpha Fund

1,873

2,046

9

 

2 ASSET CLASS BREAK DOWN SINCE 2012:

Old Mutual Global Investors has expanded its core investment capabilities and successfully moved to higher margin asset classes by decreasing the number of sub-advised assets, insourcing several asset classes to its investment teams or to other asset managers within the Old Mutual Group.

Asset Class

AUM £ billions (GBP)

AUM %

Dec 2014

March 2015

Dec 2014

March 2015

Absolute Return

2.3

2.8

11

12

Equities

6.8

7.4

32

32

Fixed Income

1.7

1.7

8

8

Multi Asset Solutions

7.2

 

7.6

34

34

Sub-Advised*

1.9

1.7

9

8

Select Funds**

1.1

1.3

6

6

*  Single manager funds which are sub-advised to external  investment advisers

** Select funds relates to 24 Old Mutual Global Investors’ sub-advised to strategic partners

3 INVESTMENT PERFORMANCE:

Old Mutual Global Investors continued to deliver strong investment performance – 60% of core funds top quartile and 84% are above median over three years ¹.




 

Cumulative Performance to

31 March 2015

 

Funds

1 Year

3 Years

5 years

 
 

OM Global Equity Fund

MSCI Benchmark

IMA Global Sector Average

23.1%
19.1%
15.0%

78.1%
52.0%
41.5%

104.7%
64.6%
48.8%

 

OM Global Equity Absolute Return Fund

(USD I Share Class)

1 month LIBOR USD Benchmark

4.2%


0.17%

26.1%


0.59%

43.4%


1.06%

 

 

OM North American Equity Fund

MSCI North America Benchmark

IMA North America Sector Average

32.1%
24.5%
25.3%

81.4%
61.0%
62.1%

123.3%
87.4%
82.6%

 

OM UK Alpha Fund

FTSE All Share Benchmark

IMA UK All Companies Sector Average

8.16%
6.57%
5.92%

52.84%
35.41%
42.53%

70.50%
49.26%
60.20%

 
           

Source: Factset © 2013 Morningstar.  All rights reserved.  For more information on the Fund please see factsheets as www.omglobalinvestors.com

Old Mutual Global Investors:

Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £22.5 billion¹.  The team consists of 219 industry professionals, including a team of 56 investment professionals. As part of Old Mutual Group it has a strong financial parent to support the activation of its business strategy. Old Mutual Global Investors is the asset management division of Old Mutual Wealth. To find out more information please go to:  www.omglobalinvestors.com

Old Mutual Wealth:

Old Mutual Wealth is the leading wealth management business in the UK and internationally, helping people secure their financial future.

It has an adviser and customer offering spanning:

•             Financial advice via the Intrinsic network

•             Platform based wealth management products and services via Old Mutual

              Wealth in the UK  and Old Mutual International globally

•             Asset management solutions via Old Mutual Global Investors

•             Discretionary investment management via Quilter Cheviot

Old Mutual Wealth oversees £102.3 billion¹ in customer investments.

Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that  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.

This press release is for journalists only and should not be relied upon by financial advisers or customers.