OMGI CONTINUES TO DELIVER POSITIVE GLOBAL GROWTH


Old Mutual Global Investors continued to deliver a solid performance during H1 2015

Julian Ide, CEO of Old Mutual Global Investors comments: 

"Old Mutual Global Investors delivered solid returns for its clients during the first half of this year as investment performance across the teams continued to be impressive.  Three years on since our creation, assets under management have increased by nearly £10 billion and the business is now a modern, robust and flexible asset management company delivering positive returns for clients and shareholders.

“We’ve made progress on a number of fronts. Flows from our international markets are now 40% of the total and comprise 17% of our assets overall. The business continues to be well balanced between third party and Old Mutual Group customers with an asset mix of approximately 50/50.

“We have significantly increased our assets sourced from the world’s largest financial institutions over the last 12 months and continue to build relationships in this space. 

“We continue to manage our cost base to improve our operating margin. The outlook for the business is positive with strong investment performance, increasing flows from Old Mutual Group sources, and improving margins.”

Financial Highlights:

Old Mutual Global Investors continues to deliver sustainable profit growth:

  • FUM up 7% to £22.4 billion (December 2014: £21.0 billion)
  • Adjusted Operating Profit (‘AOP’) up 88% to £30 million (H1 2014: £16 million) 
  • Revenue margin continued to improve to 65bps for the half year ending June 2015 as  a result of insourcing and improving product mix

Sales Highlights:

Assets flowed into a high proportion of funds despite the uncertainty in the market for much of H1:

  • Net Client Cash Flow (‘NCCF’) of £1.0 billion continued on similar level to same period 2014 (2014: £1.1 billion)
  • Strong NCCF across broad product range, including £0.8 billion into the Old Mutual Global Equity Absolute Return Fund, £0.3 billion into Old Mutual UK Alpha and £0.2 billion into the Old Mutual North American Equity Fund
  • WealthSelect delivered NCCF of £0.5 billion
  • Cirilium, the managed investment proposition at the heart of the Intrinsic restricted advice proposition, delivered strong net flows of £0.4 billion, taking funds under management above £2.5 billion
  • Old Mutual Global Investors was ranked third for net and seventh for gross UK retail sales for Q2 2015 in The Pridham Report, which was issued in August 2015

Investment Performance:

Old Mutual Global Investors continued to deliver impressive investment performance for clients:

  • 50% of core funds in top quartile and 81% above median over 3 years¹
  • The award winning momentum continued with over 20 awards won so far this year, including being named ‘Elite Provider for Equities Rating’ by Fund Calibre²in July 2015, having previously been recognised by Fund Calibre as being ‘The Most Consistent Global Fund House’ with 87.5% of funds out performing their sectors over 5 years³

Investment Products:

Enhancements continue to be made to the product range to meet investors’ needs:

  • Russ Oxley and the Rates and Liability Driven Investment team preparing for autumn 2015 product launch
  • The US$129 million¹ Old Mutual Local Currency Emerging Market Debt Fund was insourced and is now under the leadership of John Peta, Head of Emerging Market Debt
  • The US$258 million¹ Old Mutual Total Return Bond Fund moving back to the leadership of Bill Gross at Janus Capital with effect from 6 July 2015

International expansion:

Solid foundations in place for future growth in Asia, Europe and Latin America:

  • Zurich office opened and Dominik Issler appointed to lead expansion into Switzerland, Austria and Germany
  • Established a Hong Kong based Asian equities investment capability, headed by Josh Crabb and increased brand profile in the region in recognition of this development
  • Distribution Centres in London, Zurich, Boston, Miami, Montevideo, Hong Kong and Taipei
  • Multiple client conferences held in Asia, Latin America and the UK to show case strength and depth of investment talent

-ends-

Media Contacts:

Amelie Shepherd, Communications Executive            020 7 332 8345

Notes to 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 £22.4 billion¹.  The team consists of 230 industry professionals, including a team of 59 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 £101 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.