Old Mutual Asset Management sees Q1 net economic income fall 14%

OM Asset Management, the majority-owned subsidiary of Old Mutual, said first quarter economic net income fell 14.2% year on year to $32m, or $0.27 per share.

Assets under management rose 2.6% from the final quarter of 2015 to $218bn. Net client cash flows (NCCF) for the quarter were $2.4bn yielding a positive annualised revenue impact of $7.3m.

Earnings were $30.8m for the quarter, down 9.9% from the comparative quarter in 2015.

"Our results for the quarter demonstrate the strength and diversity of our multi-boutique franchise, as our affiliates generated solid organic NCCF growth of $2.4bn in a period marked by extreme volatility and challenging macroeconomic trends," said Peter L. Bain, president and chief executive officer.

“Our financial results were impacted by a 5.3% market-driven decline in average assets, and higher expenses as we continued to invest in the business."