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MONEY MANAGEMENT

OMAM’s assets up 4% despite $2.5 billion in outflows

OM Asset Management reported $249.7 billion in assets under management as of March 31, up 3.9% from Dec. 31 and up 14.5% from a year earlier, said OMAM's earnings statement released Thursday.

The company attributed the quarterly increase in AUM to market appreciation of $11.8 billion.

For the three months ended March 31, OMAM's net outflows were $2.5 billion, compared to net inflows of $1.5 billion the previous quarter and net inflows of $2.4 billion for the three months ended March 31, 2016.

Peter L. Bain, president and CEO, said in the firm's earnings statement that AUM growth was “driven by solid investment performance in a rising market environment, particularly in areas such as emerging markets, ACWI ex-U.S. and domestic equities.”

“We also continue to cultivate relationships with entrepreneurial boutique asset management firms seeking a partnership that enables them to enhance and accelerate their long-term growth and stability,” said Mr. Bain.

Mr. Bain added that OMAM's parent company, Old Mutual PLC, “took a significant step in its managed separation process during the first quarter by entering into an agreement to sell 24.95% of OMAM's shares to HNA Capital U.S.”

Broken down by strategy, OMAM's total global equities AUM was $105.2 billion as of March 31, up 9.1% from Dec. 31 and up 19.1% from March 31, 2016. U.S. equities had $82.1 billion, flat from three months prior but up 4.5% from 12 months earlier.

Alternative investments, meanwhile, had $49.2 billion in AUM, up 2.3% from Dec. 31 and up 33% from March 31, 2016, while fixed income had $13.2 billion as of March 31, down 5% from three months earlier and down 6.4% from the same time a year prior.

Revenue totaled $196.2 million for the quarter, up 5.1% from the previous quarter and up 31.1% from the three months ended March 31, 2016.

Net income attributable to controlling interests was $21.4 million for the first quarter, down 15.4% from the fourth quarter and down 30.5% from the first quarter of 2016.