| Tue 29 Jan 2002, 0:00 | | Old Mutual Plc - Announcement |
|
OLD MUTUAL PLC
ISIN CODE: GB0007389926
SHARE CODE: OML
ISSUER CODE: OLOML
Old Mutual (US) Holdings
Assets Under Management as at 31 December 2001
Old Mutual (US) Holdings, the U.S. holding company for Old Mutual's US asset
management businesses, has reported a net inflow of client assets in 2001 of
US$4.4 billion, or 2.5% of total assets as at December 31, 2000. That gain
was offset by a decline of US$9.4 billion or 5.3% in assets as a result of
market movements and by an additional US$23.0 billion or 12.9% from the
divestitures of non-strategic affiliates. On 31 December 2001, total assets
under management were US$149.9 billion compared to US$177.9 billion on 31
December 2000, an overall decrease of 15.7%.
The total assets under management at 31 December 2001 were split US$76.7
billion Old Mutual Asset Managers (US) (`OMAM(US)'), US$12.6 billion Pilgrim
Baxter & Associates and US$60.6 billion other Old Mutual affiliates.
OMAM(US) achieved a strong performance in 2001, with net inflows of client
assets of US$6.5 billion, an overall increase of 2.3%. Pilgrim Baxter had
net inflows of client assets of approximately US$800 million for the year,
despite the challenging market environment.
Strategic planning with other Old Mutual affiliates resulted in seven firms
being sold to their existing management teams and two firms reaching
agreement to be acquired by third parties.
Scott Powers, Chief Executive of Old Mutual's U.S. asset management
operations said:
"The U.S. asset management operations of Old Mutual in 2001 produced their
best performance in winning client mandates since 1993. The difficult
markets of 2001 served to highlight some of our key strengths: the diversity
of investment approaches employed by our firms, the depth of experience in
our firms' investment management teams, and a structure that allows those
investment teams to do their best work by operating autonomously. In 2002
we'll continue to sharpen our focus and develop distribution synergies among
our firms to take advantage of all those strengths."
29 January 2002
ENQUIRIES:
Old Mutual plc, London Tel: + 44 20 7569 0100
James Poole, Director Investor Relations
College Hill, London Tel: + 44 20 7457 2020
Nicholas Williams
Old Mutual (US) Holdings Tel: + 1 212 207 9451
Tucker Hewes, Hewes Communications
College Hill, Johannesburg Tel: + 27 11 447 3030
Robyn Hunt
Notes to Editors
Old Mutual (US) Holdings
Old Mutual's U.S. asset management businesses include Old Mutual Asset
Managers (US) ("OMAM(US)"), Pilgrim Baxter & Associates, and other asset
management affiliates acquired by Old Mutual as part of its acquisition of
United Asset Management Corporation ("UAM") in September 2000. Following
the acquisition, Old Mutual moved to reorganize the principal operating
companies of UAM to refocus key businesses and re-incentivise performance.
Although UAM had grown successfully through acquisitions prior to becoming
part of Old Mutual, UAM firms overall had experienced negative net cash
flows of client assets during the calendar years 1994 through 2000.
OMAM(US)
Key steps undertaken by Old Mutual in 2001 included the establishment of
OMAM(US), which comprises seven investment affiliates covering a broad
spectrum of complementary, non-overlapping asset classes and investment
styles. In joining OMAM(US), the seven firms agreed to modify their
economic relationship with Old Mutual from a revenue-sharing to a profit-
sharing basis, and to seek opportunities to work together cooperatively for
the benefit of their clients and staff. More information on OMAM(US) and its
companies is available at http://www.omam.com.
Pilgrim Baxter
After restructuring its revenue-sharing agreement with Old Mutual in
November 2000, Pilgrim Baxter took steps in 2001 to expand the breadth of
investment strategies available within its PBHG Funds group by introducing
five new mutual funds sub-advised by other Old Mutual affiliates. Primarily
a growth-focused investment manager since its founding in 1982, Pilgrim
Baxter began offering value strategies in 1996, the success of which
contributed significantly to the firm's performance in 2001. More
information on Pilgrim Baxter and the PBHG Funds is available at
www.pbhgfunds.com.
Old Mutual Affiliates
Old Mutual worked cooperatively with investment affiliates in 2001 to
determine the optimal future strategy for each firm's long-term development.
As part of the ongoing review process, particular emphasis has been placed
on strategic issues including succession planning, re-equitisation of firms
and restructuring of incentives, and development of structures to support
continuity of management and investment teams. More information on the firms
that continue to be aligned with Old Mutual is available at
http://www.uam.com.
Old Mutual plc
Old Mutual plc is an international financial services company based in
London, with operations in asset management, life assurance, banking and
general insurance. The company is listed on the London Stock Exchange with
a market capitalization of approximately US$5.1 billion as of January 25,
2002. More information on Old Mutual is available at www.oldmutual.com.
