- U.S. GAAP EPS of $0.17 per share, down
(39.3)% from Q3 2016; U.S. GAAP earnings of $18.7 million, down
(45.0)%
- Economic net income EPS of $0.43 per
share, an increase of 34.4% from Q3 2016 and economic net income of
$46.7 million, an increase of 22.9% from Q3 2016
- Net client cash flows (“NCCF”) for the
quarter of $0.5 billion yielding an annualized revenue impact of
$12.2 million(2)
- AUM of $235.9 billion at
September 30, 2017 (reflecting removal of $32 billion of
Heitman AUM in Q3’17), a decrease of (8.8)% from June 30, 2017
and an increase of 0.7% from September 30, 2016(2)
OM Asset Management plc (NYSE: OMAM) reports its results for the
third quarter ended September 30, 2017.
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“OMAM continues to build on our track record of delivering
strong results for our shareholders, as our business generated
excellent operating and financial performance in the third quarter
of 2017,” said James J. Ritchie, OMAM’s chairman and interim CEO.
“Active asset management strategies have been well positioned in
the current environment, and our Affiliates produced solid
investment performance as of September 30, with assets representing
69%, 67% and 81% of revenue outperforming benchmarks on a one-,
three- and five-year basis, respectively. Our net client cash flows
were positive on both an AUM and revenue flow basis, as NCCF of
$0.5 billion resulted in an annualized revenue impact of $12.2
million. The expansion of our higher-fee, in-demand product
offerings in areas such as global and international equities and
alternative investments has helped OMAM generate positive revenue
impact from NCCF in each of the last four quarters, and a total of
$26.1 million of positive annualized revenue impact for the
year-to-date. As a result of Affiliate performance in a strong
market environment, accretion from our Landmark investment, and a
full quarter impact of share repurchases made in Q2, we generated
record ENI earnings as our ENI per share increased 34%
year-over-year to $0.43 for the quarter, and we saw a meaningful
expansion in our ENI operating margin, which increased by 235 bps,
to 38.9%, compared to Q3’16.
“Through the disciplined execution of our growth strategy, we
continue to diversify our Affiliates’ product offerings and global
clientele. For example, in the third quarter we seeded a new
multi-asset class strategy from which we anticipate meaningful
client demand over the medium to long-term once the product has
developed a marketable track record; our Global Distribution team
has had a number of sizable wins thus far in 2017, and is actively
participating in a wide range of manager searches; and we met with
a number of prospective Affiliates during the quarter, and we
continue to find that our differentiated model, which combines
retained equity with a profit-sharing, partnership approach,
appeals to the leaders of high quality, active asset management
boutiques.”
Mr. Ritchie concluded, “Our CEO search is actively underway, and
we have identified a number of highly qualified candidates. We also
anticipate significant progress on Old Mutual’s managed separation
process, as we have been informed by both Old Mutual and HNA
Capital that they are working toward completing the sale of the
second tranche of OMAM shares during the fourth quarter of
2017.”
Table 1: Key Performance Metrics ($ in millions,
unless otherwise noted) Three Months
Ended September 30, Nine Months Ended September
30,
U.S. GAAP
Basis
2017 2016
Increase(Decrease)
2017 2016
Increase(Decrease)
Revenue $ 223.2 $ 170.8 30.7 % $ 638.2 $ 476.9 33.8 % Pre-tax
income from cont. ops. attributable to controlling interests 13.6
41.7 (67.4 )% 54.6 133.7 (59.2 )% Net income attributable to
controlling interests (Table 5) 18.7 34.0 (45.0 )% 53.0 101.1 (47.6
)% U.S. GAAP operating margin 4 % 24 % n/m 7 % 26 % n/m Diluted
shares outstanding (in millions) 109.7 119.7 111.9 119.8 Diluted
earnings per share, $ $ 0.17 $ 0.28 (39.3 )% $ 0.47 $ 0.84 (44.0 )%
Economic Net
Income Basis (Non-GAAP measure used by
management)(1)
ENI revenue $ 228.2 $ 175.8 29.8 % $ 648.4 $ 488.7 32.7 % Pre-tax
economic net income 64.2 49.4 30.0 % 179.6 140.2 28.1 % Economic
net income 46.7 38.0 22.9 % 132.2 106.2 24.5 % ENI diluted earnings
per share, $ $ 0.43 $ 0.32 34.4 % $ 1.18 $ 0.89 32.6 % Adjusted
EBITDA 72.0 55.4 30.0 % 202.5 151.0 34.1 % ENI operating margin
38.9 % 36.5 % 235 bps 37.8 % 35.4 % 245 bps
Other Operational
Information(2)
Assets under management at period end ($ in billions) $ 235.9 $
234.2 0.7 % $ 235.9 $ 234.2 0.7 % Net client cash flows ($ in
billions) 0.5 (2.6 ) n/m (2.3 ) (3.1 ) (25.8 )% Annualized revenue
impact of net flows ($ in millions) 12.2 (7.5 ) n/m 26.1 (3.6 ) n/m
(1) Excludes restructuring charges associated with the CEO
transition amounting to $0.1 million for the three months ended
September 30, 2017 and $5.5 million for the nine months ended
September 30, 2017, in each case net of taxes. As previously noted,
the difference between U.S. GAAP results and ENI increased between
2016 and 2017, primarily as a result of the treatment of the
Landmark transaction. Please see Table 7 for additional
details.
(2) As previously disclosed, in August OMAM executed a
non-binding term sheet to sell its stake in Heitman LLC to
Heitman’s management; therefore operational information (including
AUM and flow data) excludes Heitman for periods beginning in the
third quarter of 2017 (Heitman remains in operational information
for the first half of 2017). Actual U.S. GAAP and ENI financial
results will continue to include Heitman until the transaction
closes at year-end 2017 or early 2018. Including Heitman, AUM,
NCCF, and Annualized revenue impact of net flows were $268.2
billion, $(0.4) billion, and $10.3 million for the three months
ended September 30, 2017, respectively, and $268.2 billion, $(3.2)
billion, and $24.2 million for the nine months ended September 30,
2017, respectively.
Please see “Definitions and Additional Notes.” Please see Table
7 for a reconciliation of U.S. GAAP net income to economic net
income.
Assets Under Management and Flows
On August 2, 2017, OMAM entered into a non-binding term sheet to
sell its stake in Heitman LLC to Heitman’s management. While
Heitman will continue to contribute to the Company’s financial
results until the transaction closes, the Company has broken the
Heitman AUM and flows out of its AUM reporting as of July 1, 2017,
in order to give the reader a better perspective of the ongoing
business following the closing of this transaction. Unless
specifically noted, flow information in this release includes flows
from Heitman for the first half of 2017, but excludes it
thereafter, and AUM data at September 30, 2017 excludes the Heitman
AUM. For a summary of the Company’s AUM roll-forward with and
without Heitman, please see Table 2 below.
At September 30, 2017, OMAM’s total assets under management
(“AUM”), reflecting the removal of $32 billion of Heitman AUM, were
$235.9 billion, down $(22.9) billion, or (8.8)%, compared to $258.8
billion at June 30, 2017, and up $1.7 billion, or 0.7%,
compared to $234.2 billion at September 30, 2016. The decrease
in AUM during the three months ended September 30, 2017
primarily reflects the removal of Heitman from reported AUM, offset
by net market appreciation of $9.0 billion and net inflows of $0.5
billion.
For the three months ended September 30, 2017, OMAM’s net
client cash flows were $0.5 billion compared to $(0.3) billion for
the three months ended June 30, 2017 and $(2.6) billion for
the three months ended September 30, 2016. Gross inflows in
the three months ended September 30, 2017 were $7.3 billion
(compared to $8.1 billion in the second quarter of 2017 and $6.5
billion in the third quarter of 2016) and gross outflows and hard
asset disposals were $(6.8) billion (compared to $(8.4) billion in
the second quarter of 2017 and $(9.1) billion in the third quarter
of 2016). Hard asset disposals of $(0.4) billion, $(0.2) billion,
and $(1.0) billion are reflected in the net client cash flows for
the three months ended September 30, 2017, June 30, 2017
and September 30, 2016, respectively. For the three months
ended September 30, 2017, the annualized revenue impact of the
net client cash flows was $12.2 million, which compares to $13.1
million for the three months ended June 30, 2017 and $(7.5)
million for the three months ended September 30, 2016 (see
“Definitions and Additional Notes”). Gross inflows of $7.3 billion
yielded approximately 54 bps, while gross outflows and hard asset
disposals of $(6.8) billion in the same period yielded
approximately 40 bps. The positive spread between inflows and
outflows continued to be driven by strong inflows in alternatives
and Global/non-U.S. products.
For the nine months ended September 30, 2017, OMAM’s net
client cash flows were $(2.3) billion compared to $(3.1) billion
for the nine months ended September 30, 2016. Net client cash
flows before hard asset disposals were $(1.6) billion, compared to
$0.2 billion in the prior year. For the nine months ended
September 30, 2017, the annualized revenue impact of the net
client cash flows was $26.1 million compared to $(3.6) million for
the nine months ended September 30, 2016 which reflects
increased sales in higher fee strategies. Gross inflows of $23.6
billion in the nine months ended September 30, 2017 yielded an
average of 50 bps compared to 41 bps in the year-ago period while
gross outflows and hard asset disposals of $(25.9) billion yielded
35 bps in the nine months ended September 30, 2017 compared to
37 bps in the year-ago period.
Table 2: Assets Under Management Rollforward Summary
($ in billions, unless otherwise
noted) Three Months Ended Nine
Months Ended
Including Heitman, forperiods
endingSeptember 30, 2017
September30, 2017
June 30,2017
September30, 2016
September30, 2017
September30, 2016
ThreeMonths
NineMonths
Beginning AUM $ 258.8 $ 249.7 $ 218.8 $ 240.4 $ 212.4 $ 258.8 $
240.4 Acquisition (removal) of Affiliates* (32.4 ) — 8.8 (32.4 )
8.8 — — Gross inflows 7.3 8.1 6.5 23.6 20.0 7.8 24.1 Gross outflows
(6.4 ) (8.2 ) (8.1 ) (25.2 ) (19.8 ) (6.6 ) (25.4 )
Net flows
before hard asset disposals 0.9 (0.1 )
(1.6 ) (1.6 ) 0.2 1.2
(1.3 ) Hard asset disposals (0.4 ) (0.2 ) (1.0 ) (0.7
) (3.3 ) (1.6 ) (1.9 )
Net flows 0.5 (0.3
) (2.6 ) (2.3 ) (3.1
) (0.4 ) (3.2 ) Market
appreciation 9.0 9.4 9.2 30.2 16.0 9.8 31.0 Other** — —
— — 0.1 — —
Ending
AUM $ 235.9 $ 258.8
$ 234.2 $ 235.9 $
234.2 $ 268.2 $
268.2 Basis points: inflows 54.2 52.8 41.5
49.6 40.8 53.8 49.6 Basis points: outflows 40.2 35.3 37.9 35.1 36.9
38.5 34.9
Annualized revenue impact of net flows ($ in
millions) $ 12.2 $ 13.1 $
(7.5 ) $ 26.1 $ (3.6
) $ 10.3 $ 24.2 Derived average
weighted NCCF ($ in billions) 3.2 3.4 (2.1 ) 6.8 (1.0 ) 2.7 6.3
* The Company has removed Heitman from its AUM and cash flow
metrics as of the beginning of the third quarter, 2017.
** “Other” in 2016 reflects the standardization of AUM
definitions across Affiliates and mandates and the revaluation of
certain hard assets. These changes align the definition of AUM with
management fees charged to clients.
Please see “Definitions and Additional Notes”
Balance Sheet and Capital Management
Condensed Consolidated Balance Sheets as of September 30,
2017 and December 31, 2016 are provided in Table 3 below. At
September 30, 2017, the Company had $392.6 million of
long-term bonds ($400.0 million face value, net of discount and
fees), $0.0 million outstanding on its $350 million credit facility
and $33.5 million drawn on a non-recourse seed capital financing
facility (see below). Shareholders’ equity (attributable to
controlling interests) amounted to $130.8 million. The Company’s
ratio of third party borrowings (excluding non-recourse debt) to
trailing twelve months Adjusted EBITDA was 1.5x, below the
Company’s target debt to trailing twelve months Adjusted EBITDA
range of 1.75-2.25x. Of the Company’s cash and cash equivalents of
$126.4 million at September 30, 2017, $108.0 million was held
at Affiliates and $18.4 million was available at the Center.
Included in the Investments line in Table 3 below is $51.0 million
and $53.6 million at September 30, 2017 and December 31, 2016,
respectively, representing the Company’s equity-method investment
in Heitman.
As previously disclosed, during 2014, the Company entered into a
Deferred Tax Asset Deed with OM plc, which was amended in June
2016. Under the terms of the Deferred Tax Asset Deed, as amended,
the Company agreed to make a payment equal to the net present value
of the future payments due to OM plc valued as of December 31,
2016. This payment of $142.6 million is being made over three
installments, the first of which amounted to $45.5 million and was
paid on June 30, 2017, with the remaining two installments to be
paid on December 31, 2017 and June 30, 2018. The continuation of
certain protections provided by OM plc related to the realized tax
benefit resulting from the Company’s use of deferred tax assets
remains unaffected. Additional information on the amended Deferred
Tax Asset Deed can be found in the Company’s Current Report on Form
8-K, filed on June 14, 2016.
In July 2017, the Company purchased all remaining seed capital
investments owned by OM plc for $63.4 million. OMAM financed this
purchase in part through borrowings under a non-recourse seed
capital facility collateralized entirely by its seed capital
holdings. The Company entered into this facility as of July 17,
2017, and may borrow up to $65 million, so long as the borrowing
does not represent more than 50% of the value of the eligible seed
capital collateral. Since this facility is non-recourse to OMAM
beyond the seed investments themselves, drawdowns under this
facility are excluded from the Company’s third party debt levels
for purposes of calculating the Company’s credit ratio covenants
under its revolving credit facility.
As of September 30, 2017, the Company has total seed
holdings of $114.0 million.
Table 3: Condensed Consolidated Balance Sheets
($ in millions) September 30, 2017
December 31, 2016 Assets Cash and cash equivalents $
126.4 $ 101.9 Investment advisory fees receivable 194.6 163.7
Investments(1) 255.3 233.3 Other assets 795.8 759.1 Assets of
consolidated Funds(2) 67.6 36.3
Total assets
$ 1,439.7 $ 1,294.3
Liabilities and equity Accounts payable and accrued
expenses $ 212.6 $ 178.1 Due to related parties 111.9 156.3
Non-recourse borrowings 33.5 — Third party borrowings 392.6 392.3
Other liabilities 534.6 391.3 Liabilities of consolidated Funds(2)
8.1 5.8
Total liabilities 1,293.3
1,123.8 Shareholders’ equity 130.8 164.0
Non-controlling interests, including NCI of consolidated Funds(2)
15.6 6.5
Total equity 146.4
170.5 Total liabilities and equity $
1,439.7 $ 1,294.3 Third
party borrowings / trailing twelve months Adjusted EBITDA(3)
1.5
x
1.9
x
(1) Includes equity-method investment in Heitman of $51.0
million and $53.6 million at September 30, 2017 and December 31,
2016, respectively.
(2) Consolidated Funds represent certain seed investments
purchased from Old Mutual plc.
(3) Excludes non-recourse borrowings.
Please see “Definitions and Additional Notes”
Investment Performance
The Company’s investment performance remained strong in the
third quarter of 2017. Table 4 below presents a summary of the
Company’s investment performance as of September 30, 2017,
June 30, 2017, December 31, 2016 and September 30,
2016. Performance is shown on a revenue-weighted basis, an
equal-weighted basis and an asset-weighted basis. Please see
“Definitions and Additional Notes” for further information on the
calculation of performance. The analysis at September 30, 2017
reflects the removal of seven REIT composites managed by Heitman
(totaling $4.5 billion of AUM) which had an immaterial impact on
the results.
Table 4: Investment Performance (%
outperformance vs. benchmark)
Revenue-Weighted September 30, 2017(1)
June 30, 2017 December 31, 2016
September 30, 2016 1-Year 69% 74% 49% 35% 3-Year 67% 73% 55%
69% 5-Year 81% 78% 73% 69%
Equal-Weighted
September 30, 2017(1) June 30, 2017
December 31, 2016 September 30, 2016 1-Year 62% 63%
53% 50% 3-Year 69% 73% 65% 75% 5-Year 77% 77% 76% 76%
Asset-Weighted September 30, 2017(1) June
30, 2017 December 31, 2016 September 30, 2016
1-Year 64% 70% 42% 34% 3-Year 62% 68% 45% 58% 5-Year 73% 66% 61%
58%
(1) Heitman’s investment performance has been removed from the
September 30, 2017 results.
Investment performance is calculated gross of fees.
Please see “Definitions and Additional Notes”
As of September 30, 2017, assets representing 69%, 67% and
81% of revenue were outperforming benchmarks on a 1-, 3- and 5-
year basis, respectively, compared to 74%, 73% and 78% at
June 30, 2017; 49%, 55% and 73% at December 31, 2016; and
35%, 69% and 69% at September 30, 2016. Favorable active
management results in 2017 helped boost performance significantly
compared to the year-ago period. One- and three-year results
declined slightly from the June 30 period due to the
underperformance of a large international product on a one-year
basis and a large domestic equity product on a three-year
basis.
Financial Results: U.S. GAAP
Table 5 below presents the Company’s U.S. GAAP Statement of
Operations. For the three months ended September 30, 2017 and
2016, diluted earnings per share was $0.17 and $0.28, respectively,
a decrease of (39.3)%, and net income attributable to controlling
interests was $18.7 million and $34.0 million, respectively, a
decrease of $(15.3) million, or (45.0)%. Earnings per share
calculations are impacted by the eleven million shares repurchased
between September 30, 2016 and September 30, 2017 which
contributed to a decrease in average diluted shares outstanding of
(10.0) million, or (8.4)% for the three-month period and (7.9)
million, or (6.6)%, for the nine-month period. For the three months
ended September 30, 2017, compared to the three months ended
September 30, 2016, U.S. GAAP revenue increased $52.4 million,
or 30.7%, from $170.8 million to $223.2 million, as a result of
market appreciation, the impact of the Landmark acquisition in
August 2016 and a continued shift to higher fee rate products.
Expenses increased $84.3 million, or 64.5%, from $130.6 million for
the three months ended September 30, 2016, to $214.9 million
for the three months ended September 30, 2017, primarily due
to increases in compensation expense, driven by profit-driven
increases in variable compensation and revaluation of Affiliate
equity and profit interests. Compensation also increased due to the
Landmark transaction, where amortization of the contingent
consideration and the portion of equity not acquired by the Company
is recorded as compensation expense over the applicable term
because service requirements exist for holders of these units.
Income tax expense decreased (to a benefit) during the quarter due
to decreases in income from continuing operations before taxes and
the benefit of the intercompany interest expense.
For the nine months ended September 30, 2017 and 2016,
diluted earnings per share was $0.47 and $0.84, respectively, a
decrease of (44.0)%, and net income attributable to controlling
interests was $53.0 million and $101.1 million, respectively, a
decrease of $(48.1) million, or (47.6)%. U.S. GAAP revenue
increased $161.3 million, or 33.8%, from $476.9 million for the
nine months ended September 30, 2016, to $638.2 million for
the nine months ended September 30, 2017, due to higher
management fees as a result of market appreciation and shifts into
higher fee rate products, the Landmark acquisition and higher
performance fees. Operating expenses increased $241.8 million, or
68.8%, from $351.7 million for the nine months ended
September 30, 2016, to $593.5 million for the nine months
ended September 30, 2017, primarily as a result of higher
compensation and benefits (see Table 6). The increase in
compensation and benefits is predominantly due to increases in
variable compensation, the revaluation of Affiliate equity and
profit interests, and amortization of acquisition-related
consideration and pre-acquisition employee equity associated with
the Landmark acquisition. The effective tax rate decreased to 2.7%
for the nine months ended September 30, 2017 from 25.3% for
the nine months ended September 30, 2016 due to decreases in
income from continuing operations before taxes, the benefit of the
intercompany interest expense, and reversal of certain tax reserves
upon the expiration of statute of limitations.
Table 5: U.S. GAAP Statement of Operations
($ in millions, unless otherwise noted)
Three Months Ended September 30, Nine Months Ended
September 30, 2017 2016
Increase(Decrease)
2017 2016
Increase(Decrease)
Management fees $ 221.7 $ 171.8 29.0 % $ 624.1 $ 478.5 30.4 %
Performance fees 0.7 (1.1 ) n/m 12.1 (1.9 ) n/m Other revenue 0.1
0.1 — % 0.6 0.3 100.0 % Consolidated Funds’ revenue 0.7 —
n/m 1.4 — n/m
Total revenue
223.2 170.8 30.7 %
638.2 476.9 33.8 %
Compensation and benefits (see Table 6) 182.2 100.0 82.2 % 498.4
272.1 83.2 % General and administrative 27.6 27.2 1.5 % 80.9 71.7
12.8 % Amortization of acquired intangibles 1.6 0.9 77.8 % 4.9 1.0
390.0 % Depreciation and amortization 3.2 2.5 28.0 % 8.5 6.9 23.2 %
Consolidated Funds’ expense 0.3 — n/m 0.8 —
n/m
Total operating expenses 214.9
130.6 64.5 % 593.5
351.7 68.8 % Operating income
8.3 40.2 (79.4 )% 44.7
125.2 (64.3 )% Investment income 9.4 5.6 67.9
% 20.5 13.6 50.7 % Interest income 0.1 0.3 (66.7 )% 0.5 0.3 66.7 %
Interest expense (6.4 ) (4.4 ) 45.5 % (18.2 ) (5.4 ) 237.0 % Net
consolidated Funds’ investment gains 3.4 — n/m 9.9
— n/m
Income from continuing operations before
taxes 14.8 41.7 (64.5 )%
57.4 133.7 (57.1 )% Income tax expense
(benefit) (5.1 ) 7.3 n/m 1.5 33.8 (95.6 )%
Income from continuing operations 19.9 34.4
(42.2 )% 55.9 99.9 (44.0
)% Gain (loss) on disposal of discontinued operations, net
of tax — (0.4 ) (100.0 )% (0.1 ) 1.2 n/m
Net
income 19.9 34.0 (41.5 )%
55.8 101.1 (44.8 )% Net income
attributable to non-controlling interests 1.2 — n/m
2.8 — n/m
Net income attributable to controlling
interests $ 18.7 $ 34.0
(45.0 )% $ 53.0 $
101.1 (47.6 )% Earnings per share,
basic, $ $ 0.17 $ 0.28 (39.3 )% $ 0.47 $ 0.84 (44.0 )% Earnings per
share, diluted, $ 0.17 0.28 (39.3 )% 0.47 0.84 (44.0 )% Basic
shares outstanding (in millions) 109.0 119.3 111.3 119.6 Diluted
shares outstanding (in millions) 109.7 119.7 111.9 119.8
U.S. GAAP operating margin 4 % 24 % n/m 7 % 26 % n/m Pre-tax income
from continuing operations attributable to controlling interests $
13.6 $ 41.7 (67.4 )% $ 54.6 $ 133.7 (59.2 )% Net income from
continuing operations attributable to controlling interests 18.7
34.4 (45.6 )% 53.1 99.9 (46.8 )%
Please see “Definitions and Additional Notes”
Table 6: Components of U.S. GAAP Compensation Expense
($ in
millions) Three Months Ended September 30, Nine
Months Ended September 30, 2017 2016
Increase(Decrease)
2017 2016
Increase(Decrease)
Fixed compensation and benefits(1) $ 42.8 $ 36.3 17.9 % $ 127.1 $
105.7 20.2 % Sales-based compensation 4.6 4.3 7.0 % 13.5 13.5 — %
Variable compensation(2) 61.5 45.7 34.6 % 182.6 124.1 47.1 %
Affiliate key employee distributions 19.9 11.3 76.1 % 51.3 28.8
78.1 % Non-cash key employee-owned equity revaluations 35.8 (6.4 )
n/m
71.0 (8.8 ) n/m Acquisition-related consideration and
pre-acquisition employee equity(3) 17.6 8.8 100.0 %
52.9 8.8 501.1 %
Total U.S. GAAP compensation
expense $ 182.2 $ 100.0
82.2 % $ 498.4 $
272.1 83.2 %
(1) For the nine months ended September 30, 2017, $126.6 million
of fixed compensation and benefits (of the $127.1 million above) is
included within economic net income, which excludes the
compensation and benefits associated with the CEO transition
costs.
(2) For the nine months ended September 30, 2017, $173.8 million
of variable compensation expense (of the $182.6 million above) is
included within economic net income, which excludes the variable
compensation associated with the CEO transition costs.
(3) Reflects amortization of contingent consideration and equity
owned by employees, both with a service requirement, associated
with the Landmark acquisition; revaluation of the Landmark
interests is included in “Non-cash key employee-owned equity
revaluations” above.
Please see “Definitions and Additional Notes”
Financial Results: Non-GAAP Economic Net Income
For the three months ended September 30, 2017 and 2016,
diluted economic net income per share was $0.43 and $0.32,
respectively, up $0.11, or 34.4%, on economic net income of $46.7
million and $38.0 million, respectively, an increase of $8.7
million, or 22.9%. Per-share amounts are impacted by eleven million
shares repurchased between September 30, 2016 and
September 30, 2017 which contributed to a decrease in weighted
average diluted shares outstanding of (10.0) million, or (8.4)% for
the three-month period and (7.9) million, or (6.6)%, for the
nine-month period.
Table 7 reconciles U.S. GAAP to economic net income for the
three and nine months ended September 30, 2017 and
September 30, 2016. As was expected, the difference between
U.S. GAAP and economic net income increased between 2016 and 2017.
This change was primarily related to the accounting treatment of
the service component of the contingent consideration and employee
equity in the Landmark transaction, as well as the level of
non-cash key employee-owned equity revaluations, as the Affiliates
grew their income and the corresponding value of employee
equity.
For the three months ended September 30, 2017 and 2016, ENI
revenue (see Table 8) increased $52.4 million or 29.8%, from $175.8
million to $228.2 million, including a 29.0% increase in management
fees from $171.8 million to $221.7 million, driven by positive
markets and incremental revenue from the Landmark acquisition,
along with a continued shift to higher fee rate products. Average
assets under management excluding equity-accounted Affiliates in
those respective periods (see Table 12) increased 17.0% to $229.1
billion, while the bps yield on these assets increased from 34.9
bps to 38.4 bps, due to positive mix shifts related to markets and
flows as well as the impact of the higher yield on alternative
assets acquired in the Landmark transaction. Performance fee
revenue was $0.7 million for the current quarter, compared to
$(1.1) million in the year-ago quarter, reflecting the variable
nature of performance fees. Other income, including
equity-accounted Affiliates, includes $5.0 million and $4.1 million
for Heitman in the three months ended September 30, 2017 and 2016,
respectively, representing 6.3% and 6.5% of economic net income on
an after-tax basis in each respective period. Total ENI operating
expenses (see Table 9) grew 18.4%, to $78.0 million, from $65.9
million in the prior-year quarter partly as a result of the
Landmark transaction and unusual seasonality and one-off items.
Total operating expenses as a percentage of management fee revenue
decreased (318) bps from 38.4% to 35.2% as a result of increased
scale in the business. Of the $12.1 million increase in operating
expense between the three months ended September 30, 2017 and
2016, $6.5 million was due to higher fixed compensation and
benefits as a result of the Landmark acquisition as well as new
hires and annual cost of living increases and $4.9 million was
attributable to increases in general and administrative expense,
which rose 18.1% over the 2016 period, primarily reflecting the
impact of Landmark and other one-off items. Total variable
compensation increased 34.6% quarter-over-quarter from $45.7
million to $61.5 million, while the ENI variable compensation ratio
(variable compensation as a percentage of ENI earnings before
variable compensation) decreased from 41.6% to 40.9%. The sum of
operating expense and variable compensation increased $27.9
million, or 25.0% period-over-period, while revenue increased 29.8%
over this period, resulting in an increase in OMAM’s ENI operating
margin to 38.9% from 36.5%. Affiliate key employee distributions
increased 76.1% quarter-over-quarter, from $11.3 million to $19.9
million, primarily due to higher ENI operating earnings and the
levered structure of distributions at certain Affiliates, as well
as the impact of the Landmark acquisition. The ratio of Affiliate
key employee distributions over ENI operating earnings was 22.4%,
compared to 17.6% in the year-ago quarter, as Landmark employees’
continued ownership of 40% of their business increased the
Company’s overall distribution ratio. Net interest expense was $4.6
million for the three months ended September 30, 2017,
compared to net interest expense of $3.5 million in the prior-year
period, reflecting the July 2016 issuance of $400 million of senior
notes. Tax on economic net income for the three months ended
September 30, 2017 and 2016 was $17.5 million and $11.4
million, respectively, an increase of $6.1 million or 53.5%,
reflecting an increase in pre-tax profits which contributed to an
increase in the effective tax rate to 27.3% from 23.1% in the
prior-year period. This increase is primarily due to increases in
pretax ENI that are predominately taxed in the U.S. and the fixed
nature of certain intercompany interest deductions and intangible
amortization expense.
For the nine months ended September 30, 2017 and 2016,
diluted economic net income per share was $1.18 and $0.89,
respectively, up $0.29, or 32.6%, on economic net income of $132.2
million and $106.2 million, respectively, an increase of $26
million, or 24.5%.
For the nine months ended September 30, 2017 and 2016, ENI
revenue (see Table 8) increased $159.7 million or 32.7%, from
$488.7 million to $648.4 million, driven primarily by a 30.4%
increase in management fees from $478.5 million to $624.1 million.
Approximately half of this growth was related to the acquisition of
Landmark, which increased both average assets under management and
our weighted-average fee rate, with the remainder of the increase
attributable to positive markets and asset mix. Average AUM
excluding equity-accounted Affiliates (see Table 12) increased
18.1% from the first nine months of 2016 to $220.9 billion, and the
bps yield on these assets rose from 34.2 bps to 37.8 bps. Landmark
contributed approximately 3 bps of this increase, with the
remainder occurring as a result of a positive mix shift toward
higher fee global/non-US and alternative products due to flow
trends and market movements. Performance fee revenue was $12.1
million for the current period, compared to $(1.9) million in the
year-ago period, principally reflecting a performance fee earned on
an alternative product in the second quarter. Other income,
including equity-accounted Affiliates, includes $9.3 million and
$9.9 million for Heitman in the nine months ended September 30,
2017 and 2016, respectively, representing 4.2% and 5.6% of economic
net income on an after-tax basis in each respective period. Total
ENI operating expenses (see Table 9) grew 19.6% to $229.3 million,
from $191.7 million in the prior-year period. Total operating
expenses as a percentage of management fee revenue decreased to
36.7% for the nine months ended September 30, 2017 from 40.1%
in the prior year period, as management fee growth of 30.4%
outpaced the 19.6% increase in operating expenses, partially
reflecting efficiencies of scale following the Landmark
transaction. Of the $37.6 million increase in operating expenses
between the nine months ended September 30, 2017 and 2016,
$20.9 million was due to higher fixed compensation and benefits
primarily as a result of the Landmark acquisition and annual cost
of living increases. Total variable compensation increased 40.0%
period-over-period from $124.1 million to $173.8 million and the
ENI variable compensation ratio (variable compensation as a
percentage of ENI earnings before variable compensation) was
effectively flat at 41.5% compared to 41.8% in the prior year
period. The sum of operating expense and variable compensation
increased $87.3 million, or 27.6% period-over-period, while revenue
increased 32.7% over this period, resulting in an increase in
OMAM’s ENI operating margin to 37.8% from 35.4%. Affiliate key
employee distributions increased 78.1% period-over-period, from
$28.8 million to $51.3 million, primarily due to the investment in
Landmark, the levered structure of distributions at certain
Affiliates and higher ENI operating earnings. The ratio of
Affiliate key employee distributions over ENI operating earnings
was 20.9%, compared to 16.7% in the year-ago period, primarily due
to the impact of Landmark’s employees retaining 40% of their firm.
Net interest expense was $14.4 million for the nine months ended
September 30, 2017, compared to net interest expense of $3.9
million in the prior-year period, reflecting the July 2016 issuance
of $400 million of senior notes. The effective tax rate of 26.4%
for the period was higher than the prior year period of 24.3%
primarily due to higher pre-tax profits in the U.S.
For the three months ended September 30, 2017, Adjusted
EBITDA was $72 million, up 30.0% compared to $55.4 million for the
same period of 2016.
For the nine months ended September 30, 2017, Adjusted
EBITDA was $202.5 million, up 34.1% compared to $151.0 million for
the same period of 2016. See Table 22 for a reconciliation of U.S.
GAAP net income attributable to controlling interests to EBITDA,
Adjusted EBITDA and ENI.
While the Company has achieved significant ENI EPS growth in
2017, and the annual impact of AUM increases at our consolidated
Affiliates and the May 2017 share buyback provides earnings
momentum going into next year, there are a number of factors that
could impact EPS growth in 2018. As described in Q2, expected
changes in U.K. tax laws, which will likely increase the Company’s
taxes by approximately $3 million in Q4 ’17 and $10 million
annually thereafter, and the loss of Heitman earnings following
disposition (until the sale proceeds are reinvested) will have a
moderating impact on growth in 2018. These items could be offset by
a reduction in U.S. corporate tax rates. Management continues to
monitor potential tax law changes in the U.S. and U.K. while
managing its expense structure and seeking accretive opportunities
for growth though partnerships with new Affiliates.
Table 7: Reconciliation of U.S. GAAP Net Income to
Economic Net Income ($ in millions)
Three Months Ended September 30, Nine
Months Ended September 30, 2017 2016
2017 2016 U.S. GAAP net income attributable
to controlling interests $ 18.7 $
34.0 $ 53.0 $ 101.1 Adjustments
to reflect the economic earnings of the Company: i. Non-cash key
employee-owned equity and profit interest revaluations 35.8 (6.4 )
71.0 (8.8 ) ii. Amortization of acquired intangible assets,
acquisition-related consideration and pre-acquisition employee
equity 19.2 9.7 57.8 9.8 iii. Capital transaction costs — 4.4 — 6.1
iv. Seed/Co-investment (gains) losses and financings(1) (4.7 ) 0.2
(13.4 ) (0.5 ) v. Tax benefit of goodwill and acquired intangibles
deductions 2.2 1.7 6.7 3.0 vi. Discontinued operations and
restructuring(2) 0.3 0.4 9.7 (1.2 ) vii. ENI tax normalization (4.5
) (2.9 ) (2.3 ) (0.7 ) Tax effect of above adjustments, as
applicable(3) (20.3 ) (3.1 ) (50.3 ) (2.6 )
Economic net
income $ 46.7 $ 38.0
$ 132.2 $ 106.2
(1) See Table 21 for the components of seed capital and
co-investment gains and losses, and financing costs.
(2) Included in restructuring in the three months ended
September 30, 2017 is $0.2 million for CEO recruiting costs.
Included in restructuring for the nine months ended September 30,
2017 is $9.5 million related to CEO transition costs, comprised of
$0.5 million of fixed compensation and benefits, $8.8 million of
variable compensation and $0.2 million of recruiting costs.
(3) Reflects the sum of lines i., ii., iii., iv. and the
restructuring component of line vi. multiplied by the 40.2% U.S.
statutory tax rate (including state tax).
See Table 18 for a per-share presentation of the above
reconciliation.
Please see the definition of Economic Net Income within
“Definitions and Additional Notes”
The following table identifies the components of ENI
revenue:
Table 8: Components of ENI Revenue
($ in millions) Three
Months Ended September 30, Nine Months Ended September
30, 2017 2016
Increase(Decrease)
2017 2016
Increase(Decrease)
Management fees $ 221.7 $ 171.8 29.0 % $ 624.1 $ 478.5 30.4 %
Performance fees 0.7 (1.1 ) n/m 12.1 (1.9 ) n/m Other income,
including equity-accounted Affiliates(1) 5.8 5.1 13.7
% 12.2 12.1 0.8 %
ENI revenue $
228.2 $ 175.8 29.8
% $ 648.4 $ 488.7
32.7 %
See Table 19 for a reconciliation from U.S. GAAP revenue to ENI
revenue.
(1) Heitman represents $5.0 million and $4.1 million for the
three months ended September 30, 2017 and 2016, respectively, and
$9.3 million and $9.9 million for the nine months ended September
30, 2017 and 2016, respectively.
Please see “Definitions and Additional Notes”
The following table identifies the components of ENI operating
expense:
Table 9: Components of ENI Operating Expense
($ in millions)
Three Months Ended September 30, Nine Months Ended
September 30, 2017 2016
Increase(Decrease)
2017 2016
Increase(Decrease)
Fixed compensation & benefits $ 42.8 $ 36.3 17.9 % $ 126.6 $
105.7 19.8 % General and administrative expenses 32.0 27.1 18.1 %
94.2 79.1 19.1 % Depreciation and amortization 3.2 2.5
28.0 % 8.5 6.9 23.2 %
ENI operating
expense $ 78.0 $ 65.9
18.4 % $ 229.3 $
191.7 19.6 %
See Table 20 for a reconciliation from U.S. GAAP operating
expense to ENI operating expense.
Please see “Definitions and Additional Notes”
The following table shows our key non-GAAP operating metrics for
the three and nine months ended September 30, 2017 and 2016.
We present these metrics because they are the measures our
management uses to evaluate the profitability of our business and
are useful to investors because they represent the key drivers and
measures of economic performance within our business model. Please
see “Definitions and Additional Notes” for an explanation of each
ratio and its usefulness in measuring the economics and operating
performance of our business.
Table 10: Key ENI operating metrics ($ in
millions) Three Months Ended September
30, Nine Months Ended September 30, 2017
2016
Increase(Decrease)
2017 2016
Increase(Decrease)
Numerator: ENI operating earnings(1) $ 88.7 $ 64.2 38.2 % $ 245.3 $
172.9 41.9 % Denominator: ENI revenue $ 228.2 $ 175.8 29.8 % $
648.4 $ 488.7 32.7 %
ENI operating margin 38.9
% 36.5 % 235 bps 37.8 %
35.4 % 245 bps Numerator: ENI operating
expense $ 78.0 $ 65.9 18.4 % $ 229.3 $ 191.7 19.6 % Denominator:
ENI management fee revenue $ 221.7 $ 171.8 29.0 % $ 624.1 $ 478.5
30.4 %
ENI operating expense ratio 35.2 %
38.4 % (318) bps 36.7 %
40.1 % (332) bps Numerator: ENI
variable compensation $ 61.5 $ 45.7 34.6 % $ 173.8 $ 124.1 40.0 %
Denominator: ENI earnings before variable compensation(2) $ 150.2 $
109.9 36.7 % $ 419.1 $ 297.0 41.1 %
ENI variable compensation
ratio 40.9 % 41.6 % (64) bps
41.5 % 41.8 % (32) bps
Numerator: Affiliate key employee distributions $ 19.9 $ 11.3 76.1
% $ 51.3 $ 28.8 78.1 % Denominator: ENI operating earnings(1) $
88.7 $ 64.2 38.2 % $ 245.3 $ 172.9 41.9 %
ENI Affiliate key
employee distributions ratio 22.4 % 17.6
% 483 bps 20.9 % 16.7 %
426 bps Numerator: Tax on economic net income $ 17.5
$ 11.4 53.5 % $ 47.4 $ 34.0 39.4 % Denominator: Pre-tax economic
net income $ 64.2 $ 49.4 30.0 % $ 179.6 $ 140.2 28.1 %
Economic
net income effective tax rate 27.3 % 23.1
% 418 bps 26.4 % 24.3 %
214 bps
(1) ENI operating earnings represents ENI earnings before
Affiliate key employee distributions and is calculated as ENI
revenue, less ENI operating expense, less ENI variable
compensation.
(2) ENI earnings before variable compensation is calculated as
ENI revenue, less ENI operating expense.
Please see “Definitions and Additional Notes”
Please refer to the Company’s Quarterly Report on Form 10-Q for
comparable U.S. GAAP metrics.
Dividend Declaration
The Company’s Board of Directors approved a quarterly interim
dividend of $0.09 per share payable on December 29, 2017 to
shareholders of record as of the close of business on December 15,
2017.
About OMAM
OMAM is a global, multi-boutique asset management company with
$235.9 billion of assets under management as of September 30,
2017. Its diverse Affiliates offer leading, alpha generating
investment products to investors around the world. OMAM’s
partnership approach, which includes equity ownership at the
Affiliate level and a profit sharing relationship between OMAM and
its Affiliates, aligns the interests of the Company and its
Affiliates to work collaboratively in accelerating their growth.
OMAM’s business model combines the investment talent,
entrepreneurialism, focus and creativity of leading asset
management boutiques with the resources and capabilities of a
larger firm. For more information about OMAM, please visit the
Company’s website at www.omam.com.
Forward Looking Statements
This press release includes forward-looking statements, as that
term is used in the Private Securities Litigation Reform Act of
1995, including information relating to anticipated growth in
revenues, margins or earnings, anticipated changes in the Company’s
business, anticipated future performance of the Company’s business,
the impact of the Landmark acquisition, anticipated future
investment performance of the Company’s Affiliates, expected future
net cash flows, anticipated expense levels, changes in expense, the
expected effects of acquisitions and expectations regarding market
conditions. The words or phrases ‘‘will likely result,’’ ‘‘are
expected to,’’ ‘‘will continue,’’ ‘‘is anticipated,’’ ‘‘can be,’’
‘‘may be,’’ ‘‘aim to,’’ ‘‘may affect,’’ ‘‘may depend,’’
‘‘intends,’’ ‘‘expects,’’ ‘‘believes,’’ ‘‘estimate,’’ ‘‘project,’’
and other similar expressions are intended to identify such
forward-looking statements. Such statements are subject to various
known and unknown risks and uncertainties and readers should be
cautioned that any forward-looking information provided by or on
behalf of the Company is not a guarantee of future performance.
Actual results may differ materially from those in
forward-looking information as a result of various factors, some of
which are beyond the Company’s control, including but not limited
to those discussed above and elsewhere in this press release and in
the Company’s most recent Annual Report on Form 10-K, filed with
the Securities and Exchange Commission on February 22, 2017, our
Current Report on Form 8-K filed with the Securities and Exchange
Commission on May 15, 2017 and our Quarterly Report on Form 10-Q
filed with the Securities and Exchange commission on August 10,
2017. Due to such risks and uncertainties and other factors, the
Company cautions each person receiving such forward-looking
information not to place undue reliance on such statements.
Further, such forward-looking statements speak only as of the date
of this press release and the Company undertakes no obligations to
update any forward looking statement to reflect events or
circumstances after the date of this press release or to reflect
the occurrence of unanticipated events.
Conference Call Dial-in
The Company will hold a conference call and simultaneous webcast
to discuss the results at 10:00 a.m. Eastern Time on November
2, 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: (844) 579-6824 International
Dial-in Number: (763) 488-9145 Conference ID: 82608596
Link to Webcast:
http://event.on24.com/r.htm?e=1503158&s=1&k=F1352A8C9656A35D4DB213134D0522D4
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: (855) 859-2056 International Dial-in
Number: (404) 537-3406 Conference ID: 82608596
Financial
Tables
Table 11: Assets Under Management Rollforward by Asset
Class ($ in
billions, unless otherwise noted) Three Months Ended
Nine Months Ended September 30, 2017 June 30,
2017 September 30, 2016 September 30, 2017
September 30, 2016 U.S. equity Beginning balance $
81.3 $ 82.1 $ 78.6 $ 82.0 $ 76.9 Gross inflows 0.9 0.8 1.3 3.4 5.4
Gross outflows (3.3 ) (3.6 ) (4.2 ) (11.5 ) (10.1 ) Net flows (2.4
) (2.8 ) (2.9 ) (8.1 ) (4.7 ) Market appreciation 1.6 2.0 2.8 6.6
5.8 Other — — — — 0.5
Ending
balance $ 80.5 $ 81.3
$ 78.5 $ 80.5 $
78.5 Average AUM $ 80.3 $ 81.1 $ 79.2 $ 81.2 $ 77.9
Average AUM of consolidated Affiliates $ 78.4 $ 79.2 $ 77.4 $ 79.3
$ 76.1
Global / non-U.S. equity Beginning balance $
112.9 $ 105.2 $ 89.0 $ 96.4 $ 84.8 Gross inflows 4.1 4.6 3.8 13.2
10.2 Gross outflows (2.8 ) (3.6 ) (3.0 ) (10.5 ) (6.9 ) Net flows
1.3 1.0 0.8 2.7 3.3 Market appreciation 7.1 6.7 5.7 22.2 7.0 Other
— — — — 0.4
Ending
balance $ 121.3 $ 112.9
$ 95.5 $ 121.3
$ 95.5 Average AUM(1) $ 117.8 $ 109.8 $ 93.1 $
109.7 $ 88.5
Fixed income Beginning balance $ 13.2 $
13.2 $ 14.3 $ 13.9 $ 13.8 Gross inflows 0.3 0.2 0.4 1.1 0.9 Gross
outflows (0.2 ) (0.6 ) (0.6 ) (2.3 ) (1.8 ) Net flows 0.1 (0.4 )
(0.2 ) (1.2 ) (0.9 ) Market appreciation 0.1 0.4 0.3
0.7 1.5
Ending balance $
13.4 $ 13.2 $ 14.4
$ 13.4 $ 14.4
Average AUM(1) $ 13.3 $ 13.3 $ 14.3 $ 13.4 $ 14.1
Alternatives(2) Beginning balance $ 51.4 $ 49.2 $
36.9 $ 48.1 $ 36.9 Acquisition (removal) of Affiliates (32.4 ) —
8.8 (32.4 ) 8.8 Gross inflows 2.0 2.5 1.0 5.9 3.5 Gross outflows
(0.1 ) (0.4 ) (0.3 ) (0.9 ) (1.0 ) Hard asset disposals (0.4 ) (0.2
) (1.0 ) (0.7 ) (3.3 ) Net flows 1.5 1.9 (0.3 ) 4.3 (0.8 ) Market
appreciation 0.2 0.3 0.4 0.7 1.7 Other — — — —
(0.8 )
Ending balance $ 20.7
$ 51.4 $ 45.8 $
20.7 $ 45.8 Average AUM $ 19.6 $
50.5 $ 41.5 $ 39.8 $ 38.7 Average AUM of consolidated Affiliates $
19.6 $ 18.5 $ 11.0 $ 18.5 $ 8.4
Total(2)
Beginning balance $ 258.8 $ 249.7 $ 218.8 $ 240.4 $ 212.4
Acquisition (removal) of Affiliates (32.4 ) — 8.8 (32.4 ) 8.8 Gross
inflows 7.3 8.1 6.5 23.6 20.0 Gross outflows (6.4 ) (8.2 ) (8.1 )
(25.2 ) (19.8 ) Hard asset disposals (0.4 ) (0.2 ) (1.0 ) (0.7 )
(3.3 ) Net flows 0.5 (0.3 ) (2.6 ) (2.3 ) (3.1 ) Market
appreciation 9.0 9.4 9.2 30.2 16.0 Other — — —
— 0.1
Ending balance $ 235.9
$ 258.8 $ 234.2
$ 235.9 $ 234.2 Average
AUM $ 231.0 $ 254.7 $ 228.1 $ 244.1 $
219.2 Average AUM of consolidated Affiliates $ 229.1
$ 220.8 $ 195.8 $ 220.9 $ 187.1
Basis points: inflows(3) 54.2 52.8 41.5 49.6 40.8 Basis points:
outflows(3) 40.2 35.3 37.9 35.1 36.9
Annualized revenue impact
of net flows (in millions) $ 12.2 $
13.1 $ (7.5 ) $ 26.1
$ (3.6 )
Derived average weighted NCCF
3.2 3.4 (2.1 ) 6.8 (1.0 )
(1) Average AUM equals average AUM of consolidated
Affiliates
(2) Reflects removal of Heitman in Q3’17. Including Heitman,
Alternative Net flows, Market appreciation, Average AUM and Ending
AUM would be $0.6 billion, $1.0 billion, $52.2 billion, and $53.0
billion, respectively, for the three months ended September 30,
2017 and $3.4 billion, $1.5 billion, $50.5 billion and $53.0
billion, respectively, for the nine months ended September 30,
2017. Including Heitman, Total Net flows, Market appreciation,
Average AUM and Ending AUM would be $(0.4) billion, $9.8 billion,
$263.6 billion, and $268.2 billion, respectively, for the three
months ended September 30, 2017 and $(3.2) billion, $31.0 billion,
$254.8 billion and $268.2 billion, respectively, for the nine
months ended September 30, 2017.
(3) Reflects removal of Heitman in Q3’17. Including Heitman,
Basis points on inflows for the three and nine months ended
September 30, 2017 would be 53.8 and 49.6, respectively. Basis
points on outflows for the three and nine months ended September
30, 2017 would be 38.5 and 34.9, respectively.
Please see “Definitions and Additional Notes”
Table 12: Management Fee Revenue and Average Fee Rates on
Assets Under Management ($ in
millions,
except AUM data in billions)
Three Months Ended Nine Months
Ended September 30, 2017 June 30, 2017
September 30, 2016 September 30, 2017
September 30, 2016 Revenue
BasisPts
Revenue
BasisPts
Revenue
BasisPts
Revenue
BasisPts
Revenue
BasisPts
U.S. equity $ 47.2 24 $ 48.1 24 $ 47.6 24 $ 144.9 24 $ 139.7 25
Global/non-U.S. equity 121.5 41 114.1 42 96.6 42 339.3 41 277.0 42
Fixed income 6.9 21 6.8 21 7.5 21 20.8 21 21.9 21 Alternatives
46.1 93 37.7 82
20.1 73 119.1 86 39.9
64
Management fee revenue $ 221.7
38.4 $ 206.7 37.5
$ 171.8 34.9 $ 624.1
37.8 $ 478.5 34.2 Average
AUM excluding equity-accounted Affiliates
$
229.1
$
220.8
$
195.8
$
220.9
$
187.1
Average AUM including equity-accounted Affiliates and weighted
average fee rate(1) $ 231.0 38.6 $ 254.7 38.1 $ 228.1 35.7 $ 244.1
38.0 $ 219.2 35.2
(1) Excludes Heitman as of the beginning of the third quarter,
2017.
Amounts shown exclude equity-accounted Affiliates unless
otherwise noted.
Please see “Definitions and Additional Notes”
Table 13: Assets Under Management by Strategy
($ in billions) September 30, 2017
June 30, 2017 December 31, 2016
September 30, 2016 U.S. equity, small/smid cap $ 7.6 $ 7.4 $
7.9 $ 7.3 U.S. equity, mid cap value 12.7 12.5 11.3 9.6 U.S.
equity, large cap value 57.0 57.9 59.2 58.5 U.S. equity, core/blend
3.2 3.5 3.6 3.1
Total U.S. equity
80.5 81.3 82.0
78.5 Global equity 38.7 36.4 32.3 31.4 International equity
54.6 50.7 42.5 41.8 Emerging markets equity 28.0 25.8
21.6 22.3
Total global/non-U.S. equity 121.3
112.9 96.4 95.5 Fixed
income 13.4 13.2 13.9 14.4 Alternatives(1) 20.7 51.4
48.1 45.8
Total assets under management $
235.9 $ 258.8 $
240.4 $ 234.2
(1) Excludes $32.3 billion related to Heitman at September 30,
2017
Please see “Definitions and Additional Notes”
Table 14: Assets Under Management by Affiliate
($ in billions) September 30, 2017
June 30, 2017 December 31, 2016
September 30, 2016 Acadian Asset Management $ 92.8 $ 87.5 $
75.0 $ 74.5 Barrow, Hanley, Mewhinney & Strauss 92.4 91.7 92.3
90.8 Campbell Global 5.2 5.2 5.2 4.9 Copper Rock Capital Partners
6.0 5.7 5.1 5.3 Investment Counselors of Maryland* 2.0 2.0 2.0 1.7
Landmark Partners 13.4 11.6 9.7 8.8 Thompson, Siegel & Walmsley
24.1 22.7 19.9 18.0
Total assets under
management excluding Heitman** 235.9 226.4
209.2 204.0 Heitman* 32.3 32.4 31.2
30.2
Total assets under management $
268.2 $ 258.8 $
240.4 $ 234.2
*Equity-accounted Affiliates. The Company has removed Heitman
from its AUM and cash flow metrics as of the beginning of the third
quarter, 2017.
**Reported AUM as of September 30, 2017 which removes
Heitman.
n/a - not an Affiliate of our Company as of the date
indicated
Please see “Definitions and Additional Notes”
Table 15: Assets Under Management by Client Type
($ in billions) September 30,
2017 June 30, 2017 December 31,
2016 September 30, 2016 AUM % of
total AUM % of total AUM
% of total AUM % of total Sub-advisory
$ 79.4 33.7 % $ 80.7 31.2 % $ 75.9 31.6 % $ 72.7 31.0 % Corporate /
Union 44.0 18.7 % 47.6 18.4 % 48.2 20.0 % 48.5 20.7 % Public /
Government 66.9 28.4 % 87.2 33.7 % 78.8 32.8 % 75.8 32.4 %
Endowment / Foundation 4.8 2.0 % 5.0 1.9 % 4.8 2.0 % 4.7 2.0 % Old
Mutual Group 3.6 1.5 % 3.5 1.4 % 3.5 1.5 % 3.7 1.6 % Commingled
Trust/UCITS 26.4 11.2 % 23.8 9.2 % 18.8 7.8 % 18.5 7.9 % Mutual
Fund 2.0 0.8 % 1.9 0.7 % 1.8 0.7 % 1.9 0.8 % Other 8.8 3.7 %
9.1 3.5 % 8.6 3.6 % 8.4 3.6 %
Total assets
under management $ 235.9 $
258.8 $ 240.4 $
234.2
At September 30, 2017, reflects the removal of Heitman, which
predominantly impacts the Corporate/Union and Public/Government
categories.
Please see “Definitions and Additional Notes”
Table 16: AUM by Client Location ($ in
billions) September 30, 2017
June 30, 2017 December 31, 2016
September 30, 2016 AUM % of total
AUM % of total AUM % of
total AUM % of total U.S. $ 185.7 78.7 % $
205.2 79.3 % $ 191.6 79.7 % $ 187.2 79.9 % Europe 18.7 7.9 % 18.8
7.3 % 16.8 7.0 % 16.1 6.9 % Asia 9.9 4.2 % 13.5 5.2 % 12.5 5.2 %
12.3 5.3 % Middle East 0.2 0.1 % 0.2 0.1 % 0.1 — % 0.1 — %
Australia 8.2 3.5 % 8.8 3.4 % 7.8 3.3 % 7.4 3.2 % Other 13.2
5.6 % 12.3 4.7 % 11.6 4.8 % 11.1 4.7 %
Total assets under management $ 235.9
$ 258.8 $ 240.4 $
234.2
At September 30, 2017, reflects the removal of Heitman, which
predominantly impacts the U.S. and Asia categories.
Please see “Definitions and Additional Notes”
Table 17: AUM NCCF, Annualized Revenue Impact of NCCF,
Fee Rates and Derived Average Weighted NCCF
AUM NCCF($ billions)
Annualized RevenueImpact of
NCCF($ millions)
Weighted AverageFee Rate on
TotalAverage AUM (bps)
Derived AverageWeighted
NCCF($ billions)
2014 Q1 $ (1.0 ) $ (3.0 ) 33.7 $ (0.9 )
Q2 3.6
18.4 33.5 5.5
Q3 3.1 19.1 33.1 5.8
Q4 3.8 20.0 32.9
6.1
2015 Q1 (0.2 ) 11.3 34.0 3.3
Q2 0.8 13.5
34.3 3.9
Q3 (2.5 ) 0.7 34.5 0.2
Q4 (3.2 ) (6.6 ) 34.7
(1.9 )
2016 Q1 2.4 7.3 34.7 2.1
Q2 (2.9 ) (3.4
) 35.0 (1.0 )
Q3 (2.6 ) (7.5 ) 35.7 (2.1 )
Q4 1.5
14.6 36.1 4.0
2017 Q1 (2.5 ) 0.8 37.7 0.2
Q2
(0.3 ) 13.1 38.1 3.4
Q3 (1) 0.5 12.2
38.6
3.2
(1) Reflects removal of Heitman; data including Heitman would
have been as follows: AUM NCCF $(0.4) billion; Annualized Revenue
Impact of NCCF $10.3 million; Weighted Average Fee Rate on Total
Average AUM 38.7 bps; Derived Average Weighted NCCF $2.7
billion.
Please see “Definitions and Additional Notes”
Table 18: Reconciliation of Per-share U.S. GAAP Net Income to
Economic Net Income ($)
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2017 2016 2017 2016
U.S. GAAP net income per share $ 0.17 $
0.28 $ 0.47 $ 0.84 Adjustments
to reflect the economic earnings of the Company: i. Non-cash key
employee-owned equity and profit interest revaluations 0.33 (0.05 )
0.63 (0.07 ) ii. Amortization of acquired intangible assets,
acquisition-related consideration and pre-acquisition employee
equity 0.18 0.08 0.52 0.08 iii. Capital transaction costs — 0.04 —
0.05 iv. Seed/Co-investment (gains) losses and financing (0.04 ) —
(0.12 ) — v. Tax benefit of goodwill and acquired intangibles
deductions 0.02 0.01 0.06 0.03 vi. Discontinued operations and
restructuring — — 0.09 (0.01 ) vii. ENI tax normalization (0.04 )
(0.02 ) (0.02 ) (0.01 ) Tax effect of above adjustments, as
applicable (0.19 ) (0.02 ) (0.45 ) (0.02 )
Economic net income
per share $ 0.43 $ 0.32
$ 1.18 $ 0.89
Please see “Definitions and Additional Notes”
Table 19: Reconciliation of U.S. GAAP Revenue to ENI
Revenue ($ in millions)
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2017 2016 2017 2016 U.S.
GAAP revenue $ 223.2 $ 170.8 $ 638.2 $ 476.9 Include investment
return on equity-accounted Affiliates(1) 5.7 5.0 11.2 11.8 Exclude
revenue from consolidated Funds (0.7 ) — (1.4 ) — Other — —
0.4 —
ENI revenue $ 228.2
$ 175.8 $ 648.4 $
488.7
(1) Includes $5.0 million and $9.3 million related to Heitman
for the three and nine months ended September 30, 2017,
respectively, and $4.1 million and $9.9 million for the three and
nine months ended September 30, 2016, respectively.
Please see “Definitions and Additional Notes”
Table 20: Reconciliation of U.S. GAAP Operating Expense
to ENI Operating Expense
($ in millions) Three Months Ended September 30,
Nine Months Ended September 30, 2017 2016
2017 2016 U.S. GAAP operating expense $ 214.9 $ 130.6
$ 593.5 $ 351.7 Less: items excluded from ENI Acquisition-related
consideration and pre-acquisition employee equity(1) (17.6 ) (8.8 )
(52.9 ) (8.8 ) Non-cash key employee-owned equity and profit
interest revaluations (35.8 ) 6.4 (71.0 ) 8.8 Amortization of
acquired intangible assets (1.6 ) (0.9 ) (4.9 ) (1.0 ) Capital
transaction costs — (4.4 ) — (6.1 ) Restructuring costs(2) (0.2 ) —
(9.5 ) — Funds’ operating expense (0.3 ) — (0.8 ) — Less: items
segregated out of U.S. GAAP operating expense Variable compensation
(61.5 ) (45.7 ) (173.8 ) (124.1 ) Affiliate key employee
distributions (19.9 ) (11.3 ) (51.3 ) (28.8 )
ENI operating
expense $ 78.0 $ 65.9
$ 229.3 $ 191.7
(1) Reflects amortization of contingent consideration and equity
owned by employees, both with a service requirement, associated
with the Landmark acquisition; revaluation of the Landmark
interests is included in “Non-cash key employee-owned equity and
profit interest revaluations” above.
(2) Included in restructuring in the three months ended
September 30, 2017 is $0.2 million for CEO transition costs.
Included in restructuring for the nine months ended September 30,
2017 is $9.5 million related to CEO transition costs, comprised of
$0.5 million of fixed compensation and benefits, $8.8 million of
variable compensation and $0.2 million of recruiting costs.
Please see “Definitions and Additional Notes”
Table 21: Components of Seed/Co-investment Gains (Losses)
and Financing ($ in
millions)
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2017 2016 2017 2016 Seed/Co-investment
gains (losses) $ 6.3 $ 0.6 $ 16.6 $ 1.8
Financing costs: Seed/Co-investment average balance 119.8
72.0 80.8 69.9 Blended interest rate(1) 5.0 % 4.7 % 5.3 % 2.5 %
Financing costs (1.6 ) (0.8 ) (3.2 ) (1.3 )
Net
seed/co-investment gains (losses) and financing $
4.7 $ (0.2 ) $
13.4 $ 0.5
(1) Prior to the July 2016 bond issuances, the blended interest
rate was based on the Company’s interest rate on its revolving
credit facility. Subsequent to the 2016 bond issuance and the
establishment of OMAM’s non-recourse seed capital facility in July
2017, the blended rate is based first on the interest rate paid on
the Company’s non-recourse seed capital facility up to the average
amount drawn, and thereafter on the weighted average rate of the
long-term debt.
Please see “Definitions and Additional Notes”
Table 22: Reconciliation of Net Income
to EBITDA, Adjusted EBITDA and Economic Net Income
($ in millions)
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2017 2016 2017 2016
Net income attributable to controlling interests $
18.7 $ 34.0 $ 53.0 $
101.1 Net interest expense 6.3 4.1 17.7 5.1 Income tax
expense (including tax expenses related to discontinued operations)
(5.1 ) 8.4 1.5 35.5 Depreciation and amortization (including
intangible assets) 4.8 3.2 13.4 7.8
EBITDA $ 24.7 $ 49.7 $
85.6 $ 149.5 Non-cash key employee-owned
equity and profit interest revaluations 35.8 (6.4 ) 71.0 (8.8 )
Amortization of acquisition-related consideration and
pre-acquisition employee equity 17.6 8.9 52.9 8.9 EBITDA of
discontinued operations 0.1 (0.7 ) 0.2 (2.9 ) (Gain) loss on seed
and co-investments (6.3 ) (0.6 ) (16.6 ) (1.8 ) Restructuring costs
0.2
—
9.5
—
Capital transaction costs — 4.4 — 6.1
Other
(0.1 ) 0.1 (0.1 ) —
Adjusted EBITDA $
72.0 $ 55.4 $ 202.5 $
151.0 Net interest expense to third parties (4.6 ) (3.5 )
(14.4 ) (3.9 ) Depreciation and amortization (3.2 ) (2.5 ) (8.5 )
(6.9 ) Tax on economic net income (17.5 ) (11.4 ) (47.4 ) (34.0 )
Economic net income $ 46.7 $
38.0 $ 132.2 $
106.2
Please see “Definitions and Additional Notes”
Table 23: Calculation of ENI Effective Tax Rate
($ in millions)
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2017 2016 2017 2016 Pre-tax economic
net income(1) $ 64.2 $ 49.4 $ 179.6 $ 140.2 Intercompany interest
expense deductible for U.S. tax purposes (19.7 ) (18.9 ) (58.6 )
(54.3 )
Taxable economic net income 44.5
30.5 121.0 85.9 Taxes at
the U.S. federal and state statutory rates(2) (17.8 ) (12.2 ) (48.6
) (34.5 ) Other reconciling tax adjustments 0.3 0.8
1.2 0.5
Tax on economic net income
(17.5 ) (11.4 ) (47.4 )
(34.0 ) Add back intercompany interest expense
previously excluded 19.7 18.9 58.6 54.3
Economic net income $ 46.7 $
38.0 $ 132.2 $
106.2 Economic net income effective tax rate(3) 27.3
% 23.1 % 26.4 % 24.3 %
(1) Pre-tax economic net income is shown before intercompany
interest and tax expenses.
(2) Taxed at U.S. Federal and State statutory rate of 40.2%
(3) The economic net income effective tax rate is calculated by
dividing the tax on economic net income by pre-tax economic net
income.
Please see “Definitions and Additional Notes”
Definitions and Additional
Notes
References to “OMAM” or the “Company” refer to OM Asset
Management plc; references to “OM plc” refer to Old Mutual plc, the
Company’s former parent; references to the “Center” refer to the
holding company excluding the Affiliates; references to "Landmark"
refer to Landmark Partners, LLC, acquired by the Company in August
2016. OMAM operates its business through eight boutique asset
management firms (the “Affiliates”). OMAM’s distribution activities
are conducted in various jurisdictions through affiliated companies
in accordance with local regulatory requirements.
Economic net income
The Company uses a non-GAAP performance measure referred to as
economic net income (“ENI”) to represent its view of the underlying
economic earnings of the business. ENI is used to make resource
allocation decisions, determine appropriate levels of investment or
dividend payout, manage balance sheet leverage, determine Affiliate
variable compensation and equity distributions, and incentivize
management. The Company’s ENI adjustments to U.S. GAAP include both
reclassifications of U.S. GAAP revenue and expense items, as
well as adjustments to U.S. GAAP results, primarily to exclude
non-cash, non-economic expenses, or to reflect cash benefits not
recognized under U.S. GAAP.
The Company re-categorizes certain line items on the income
statement to:
- exclude the effect of Fund
consolidation by removing the portion of Fund revenues, expenses
and investment return which is not attributable to its
shareholders;
- include within management fee revenue
any fees paid to Affiliates by consolidated Funds, which are viewed
as investment income under U.S. GAAP;
- include the Company’s share of earnings
from equity-accounted Affiliates within other income, rather than
investment income;
- treat sales-based compensation as a
general and administrative expense, rather than part of fixed
compensation and benefits;
- identify separately from operating
expenses, variable compensation and Affiliate key employee
distributions, which represent Affiliate earnings shared with
Affiliate key employees.
The Company also makes the following adjustments to
U.S. GAAP results to more closely reflect its economic results
by:
i. excluding non-cash expenses representing changes in the value
of Affiliate equity and profit interests held by Affiliate key
employees. These ownerships interests may in certain circumstances
be repurchased by OMAM at a value based on a pre-determined fixed
multiple of trailing earnings and as such this value is carried on
the Company’s balance sheet as a liability. Non-cash movements in
the value of this liability are treated as compensation expense
under U.S. GAAP. However, any equity or profit interests
repurchased by OMAM can be used to fund a portion of future
variable compensation awards, resulting in savings in cash variable
compensation that offset the negative cash effect of repurchasing
the equity.
ii. excluding non-cash amortization or impairment expenses
related to acquired goodwill and other intangibles as these are
non-cash charges that do not result in an outflow of tangible
economic benefits from the business. It also excludes the
amortization of acquisition-related contingent consideration, as
well as the value of employee equity owned pre-acquisition, as
occurred as a result of the Landmark transaction, where such items
have been included in compensation expense as a result of ongoing
service requirements for certain employees. Please note that the
revaluations related to these acquisition-related items are
included in (i) above.
iii. excluding capital transaction costs, including the costs of
raising debt or equity, gains or losses realized as a result of
redeeming debt or equity and direct incremental costs associated
with acquisitions of businesses or assets.
iv. excluding seed capital and co-investment gains, losses and
related financing costs. The net returns on these investments are
considered and presented separately from ENI because ENI is
primarily a measure of the Company’s earnings from managing client
assets, which therefore differs from earnings generated by its
investments in Affiliate products, which can be variable from
period to period.
v. including cash tax benefits associated with deductions
allowed for acquired intangibles and goodwill that may not be
recognized or have timing differences compared to U.S. GAAP.
vi. xcluding the results of discontinued operations attributable
to controlling interests since they are not part of the Company’s
ongoing business, and restructuring costs incurred in continuing
operations which represent an exit from a distinct product or line
of business.
vii. excluding deferred tax resulting from changes in tax law
and expiration of statutes, adjustments for uncertain tax
positions, deferred tax attributable to intangible assets and other
unusual items not related to current operating results to reflect
ENI tax normalization.
The Company adjusts its income tax expense to reflect any tax
impact of its ENI adjustments. Please see Table 7 for a
reconciliation of U.S. GAAP net income attributable to controlling
interests to economic net income.
Adjusted EBITDA
Adjusted EBITDA is defined as economic net income before
interest, income taxes, depreciation and amortization. The Company
notes that its calculation of Adjusted EBITDA may not be consistent
with Adjusted EBITDA as calculated by other companies. The Company
believes Adjusted EBITDA is a useful liquidity metric because it
indicates the Company’s ability to make further investments in its
business, service debt and meet working capital requirements.
Please see Table 22 for a reconciliation of U.S. GAAP net income
attributable to controlling interests to EBITDA, Adjusted EBITDA
and ENI.
Methodologies for calculating investment
performance(1):
Revenue-weighted
investment performance measures the percentage of management fee
revenue generated by Affiliate strategies which are beating
benchmarks. It calculates each strategy’s percentage weight by
taking its estimated composite revenue over total composite
revenues in each period, then sums the total percentage of revenue
for strategies outperforming.
Equal-weighted investment performance measures the
percentage of Affiliates’ scale strategies (defined as strategies
with greater than $100 million of AUM) beating benchmarks. Each
outperforming strategy over $100 million has the same weight; the
calculation sums the number of strategies outperforming relative to
the total number of composites over $100 million.
Asset-weighted
investment performance measures the percentage of AUM in strategies
beating benchmarks. It calculates each strategy’s percentage weight
by taking its composite AUM over total composite AUM in each
period, then sums the total percentage of AUM for strategies
outperforming.
______________________
(1) Barrow Hanley’s Windsor II Large Cap Value account AUM and
return are separated from Barrow Hanley’s Large Cap Value composite
in revenue-weighted, equal-weighted and asset-weighted
outperformance percentage calculations.
ENI operating earnings
ENI operating earnings represents ENI earnings before Affiliate
key employee distributions and is calculated as ENI revenue, less
ENI operating expense, less ENI variable compensation. It differs
from economic net income because it does not include the effects of
Affiliate key employee distributions, net interest expense or
income tax expense.
ENI operating margin
The ENI operating margin, which is calculated before Affiliate
key employee distributions, is used by management and is useful to
investors to evaluate the overall operating margin of the business
without regard to our various ownership levels at each of the
Affiliates. ENI operating margin is a non-GAAP efficiency measure,
calculated based on ENI operating earnings divided by ENI revenue.
The ENI operating margin is most comparable to our U.S. GAAP
operating margin.
ENI management fee revenue
ENI Management fee revenue corresponds to U.S. GAAP management
fee revenue.
ENI operating expense ratio
The ENI operating expense ratio is used by management and is
useful to investors to evaluate the level of operating expense as
measured against our recurring management fee revenue. We have
provided this ratio since many operating expenses, including fixed
compensation & benefits and general and administrative expense,
are generally linked to the overall size of the business. We track
this ratio as a key measure of scale economies at OMAM because in
our profit sharing economic model, scale benefits both the
Affiliate employees and OMAM shareholders.
ENI earnings before variable
compensation
ENI earnings before variable compensation is calculated as ENI
revenue, less ENI operating expense.
ENI variable compensation ratio
The ENI variable compensation ratio is calculated as variable
compensation divided by ENI earnings before variable compensation.
It is used by management and is useful to investors to evaluate
consolidated variable compensation as measured against our ENI
earnings before variable compensation. Variable compensation is
usually awarded based on a contractual percentage of each
Affiliate’s ENI earnings before variable compensation and may be
paid in the form of cash or non-cash Affiliate equity or profit
interests. Center variable compensation includes cash and OMAM
equity. Non-cash variable compensation awards typically vest over
several years and are recognized as compensation expense over that
service period. The variable compensation ratio at each Affiliate
will typically be between 25% and 35%.
ENI Affiliate key employee distribution
ratio
The Affiliate key employee distribution ratio is calculated as
Affiliate key employee distributions divided by ENI operating
earnings. The ENI Affiliate key employee distribution ratio is used
by management and is useful to investors to evaluate Affiliate key
employee distributions as measured against our ENI operating
earnings. Affiliate key employee distributions represent the share
of Affiliate profits after variable compensation that is
attributable to Affiliate key employee equity and profit interests
holders, according to their ownership interests. At certain
Affiliates, OMUS is entitled to an initial preference over profits
after variable compensation, structured such that before a
preference threshold is reached, there would be no required key
employee distributions, whereas for profits above the threshold the
key employee distribution amount would be calculated based on the
key employee economic percentages, which range from approximately
20% to 40% at our consolidated Affiliates.
U.S. GAAP operating margin
U.S. GAAP operating margin equals operating income from
continuing operations divided by total revenue.
Consolidated Funds
Financial information presented in accordance with U.S. GAAP may
include the results of consolidated pooled investment vehicles, or
Funds, managed by our Affiliates, where it has been determined that
these entities are controlled by the Company. Financial results
which are “attributable to controlling interests” exclude the
impact of Funds to the extent it is not attributable to our
shareholders.
Annualized revenue impact of net flows
(“NCCF”)
Annualized revenue impact of net flows represents the difference
between annualized management fees expected to be earned on new
accounts and net assets contributed to existing accounts, less the
annualized management fees lost on terminated accounts or net
assets withdrawn from existing accounts, including equity-accounted
Affiliates. Annualized revenue is calculated by multiplying the
annual gross fee rate for the relevant account by the net assets
gained in the account in the event of a positive flow or the net
assets lost in the account in the event of an outflow and is
designed to provide investors with a better indication of the
potential financial impact of net client cash flows.
Hard asset disposals
Net flows in Table 1, Table 2 and Table 11 include hard asset
disposals and fund distributions made by OMAM’s Affiliates. This
category is made up of investment-driven asset dispositions by
Landmark, investing in real estate funds and secondary private
equity; Heitman, a real estate manager; or Campbell, a timber
manager.
Derived average weighted NCCF
Derived average weighted NCCF reflects the implied NCCF if
annualized revenue impact of net flows represents asset flows at
the weighted fee rate for OMAM (i.e. 38.6 bps in Q3'17). For
example, NCCF annualized revenue impact of $12.2 million divided by
the average weighted fee rate of OMAM’s AUM of 38.6 bps equals the
derived average weighted NCCF of $3.2 billion.
n/m
“Not meaningful.”
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171102005775/en/
OMAMBrett Perryman, 617-369-7300ir@omam.com
Grafico Azioni OM ASSET MANAGEMENT PLC (NYSE:OMAM)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni OM ASSET MANAGEMENT PLC (NYSE:OMAM)
Storico
Da Giu 2023 a Giu 2024