OLD MUTUAL GLOBAL INVESTORS DELIVERS SOLID Q3 14 PERFORMANCE


Old Mutual Global Investors delivered a solid performance in Q3 2014 as it continues to deliver its vision to become one of the UK’s leading asset management houses. There was a significant improvement in net inflows of £1.4 billion year to date in 2014, up 180% on the same period in 2013. In Q3 net client cash flow (‘NCCF’) is £0.3 billion, driven by gross sales of £2.0 billion which are consistent with Q3 2013 (£2.0 billion). 

 

OMGI FUM has increased by 9% since the start of the year and is now £17.4 billion. An additional £1.8 billion, representing the Cirilium fund range acquired with Intrinsic, will become part of Old Mutual Global Investors’ product proposition in December 2014.

 

Assets under management have increased across the majority of the fund range.  In particular the Old Mutual Global Equity Absolute Return, Old Mutual Global Equity, Old Mutual UK Alpha, Old Mutual Monthly Income Bond and Old Mutual North American Equity funds have been popular investment choices:

 

 

AUM Millions (GBP)

 

Snapshot of OMGI funds increasing AUM during 2014

30 Sept 14

31 Dec 13

INCREASE %

OM UK Alpha Fund

1,490          

1,052       

42% 

OM UK Mid Cap Fund

1,429

1,359

5%

OM Global Equity Absolute Return Fund

1,170           

348          

 236%

OM UK Smaller Companies Fund

836        

821 

2% 

OM North American Equity Fund

511           

236 

116% 

OM Monthly Income Bond Fund

134       

47

184% 

 

The new WealthSelect researched fund range and managed portfolio service continues to gather momentum and has now attracted £0.5 billion of new investment since its launch in February. 

Old Mutual Global Investors has been transformed since its launch two years ago and is now recognised as a modern asset management business, focussed on generating positive customer outcomes, strong sales and sustainable profits for Old Mutual Wealth. Old Mutual Global Investors is building a strong UK presence to achieve a top 5 position in the market.  Its strategy is also to expand into selected markets to support its global client base, through asset management and distribution capabilities based in chosen international markets. 

Since its creation in the summer of 2012, Old Mutual Global Investors has successfully moved to higher margin asset classes by insourcing several asset classes to its investment teams or to other asset managers within the Old Mutual Group.  The following diagrams illustrate this transition.

 

 Strong growth in aum

 

During October 2014, the business also announced the appointments of new core investment capabilities which should increase future revenue generating growth opportunities. Joshua Crabb joined the company in October as Head of Asian Equities (supported by two new analysts) and Ian Ormiston has joined as European Smaller Companies Fund Manager.  In addition, during 2015, Russ Oxley will join as Head of Fixed Income - Absolute Return, along with the team of five who managed the Ignis Absolute Return Government Bond Fund: Huw Davies, Joshua Heming, Adam Purzitsky, Paul Shanta and Jin Wong. 

Julian Ide, Chief Executive of Old Mutual Global Investors, comments:  “Since our creation we have focussed on delivering products and services that meet the needs of our clients.  Our aim has been to deliver top performing investment funds that position us in line with our peers in the industry. 

“We are focussed on increasing our range of investment capabilities through hiring additional investment capabilities.  From the outset, we have retained and attracted the best investment talent offering compelling and reputable investment processes and track records, ‘star’ quality, strong cultural fit within the business and incremental distribution benefits. Our recent appointments clearly demonstrate that we are an attractive destination.  Our existing and new personnel will help us become a highly successful company, delivering strong investment returns for our clients and sustainable profits for Old Mutual Wealth.”

Old Mutual Global Investors continues to deliver strong investment performance – 69% of its core funds are top quartile over three years and 87% are above median over the same period.*



 

Cumulative Performance to

30 September 2014

 

Funds

1 Year

3 Years

5 years

 
 

OM UK Alpha Fund

FTSE All Share Benchmark

IMA UK All Companies Sector Average

 

6.0%

6.1%

6.2%

 

65.3%

47.9%

53.6%

 

76.5%

59.1%

63.7%

 

OM UK Mid Cap Fund

FTSE 250 Ex ITs Benchmark

IMA UK All Companies Sector Average

 

9.5%

5.3%

6,1%

 

91.9%

75.8%

52.8%

 

106.7%

98.8%

62.6%

 

OM Global Equity Absolute Return Fund

(USD I Share Class)

1 month LIBOR USD Benchmark

 

7.3%

0.16%

 

24.4%

0.62%

 

44.21%

1.14%

 

 

OM UK Smaller Companies Fund

Numis Smaller Cos ex ITs Benchmark

IMA UK Smaller Companies Sector Average

 

7.5%   

4.7%  

7.6%

 

 

78.5%

73.9%

64.8%

 

106.2%

101.4%

97.7%

 

OM North American Equity Fund

MSCI North America Benchmark

IMA North America Sector Average

 

19.2%    

17.9% 

15.5%

 

78.5%

70.6%

66.5%

 

119.9%

92.4%

83.5%

 

 

Old Mutual Wealth, a leading retail investment business, continued to grow in Q3 2014 with NCCF of £0.8 billion during the period, up 33% on Q3 2013 (£0.6 billion). The increase takes year to date NCCF to £2.0 billion, an increase of 43% compared to 2013.  Gross sales of £3.8 billion in the third quarter were up slightly on Q3 2013 (£3.7 billion), taking year-to-date gross sales to £11.5 billion, a 10% increase on last year.  Funds under management (FUM) have increased to £82.2 billion, up 5% since the start of the year, following strong net flows into the UK Platform and Old Mutual Global Investors.

 

Media Centre:

Old Mutual Global Investors:

Vee Montebello, Head of PR and Internal Communications         

+ 44 20 7 332 7687

 

Amelie Shepherd, PR Executive                                                                 

+ 44 20 7 332 8345

 

Old Mutual Wealth:

Charlie Musson, Head of Corporate Communications                             02380 916 099

Notes for Editors:

Old Mutual Global Investors:

Old Mutual Global Investors has grown strongly since its creation in August 2012 and now has assets under management of £17.4 billion*.   The team consists of 203 industry professionals, including a team of 52 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 a leading retail investment business in the UK and internationally. It aims to help people who want to make a positive change for themselves, those close to them or the society they live in by helping them secure their financial future.

It has an adviser and customer offering spanning: 

  • Financial advice via the Intrinsic network and independent financial advisers
  • Platform based wealth management products and services via Old Mutual Wealth in the UK and Skandia International globally
  • Asset management solutions via Old Mutual Global Investors 

Old Mutual Wealth currently oversees £82.2* billion in customer investments. 

Old Mutual Wealth is part of Old Mutual plc, a FTSE 100 group that provides life assurance, asset management, banking and general insurance. Old Mutual is trusted by more than 16 million customers across the world and has a total of £308 billion* assets under management.

*as at 30 September 2014

Important information: Past performance is no guarantee of future results. The value of an investment and the income from it can fall as well as rise and investors may not get back the amount originally invested.

This communication is issued by Old Mutual Global Investors (UK) Limited (trading name Old Mutual Global Investors), which is a member of the Old Mutual Group. Old Mutual Global Investors is registered in England and Wales under number 02949554 and its registered office is 2 Lambeth Hill London EC4P 4WR. Old Mutual Global Investors is authorised and regulated by the UK Financial Conduct Authority (“FCA”) with FCA register number 171847 and  is owned by Old Mutual Plc, a public limited company limited by shares, incorporated in England and Wales under registered number 3591559.  OMGI 11/14/0037.