BOSTON, Oct. 21, 2002 (PRIMEZONE) -- The U.S. asset management group of Old Mutual plc (LSE:OML) (Other OTC:ODMTF) today announced results for its affiliated asset management firms for the nine months ended September 30, 2002. The group achieved strong relative performance overall, with assets under management declining 12.1% excluding divestitures and cash flow, compared to a 28.2% decline for the S&P 500 Index, a 39.9% decline for the NASDAQ Composite Index, a 23.2% decline for the Dow Jones Industrial Average, and a 8.6% gain for the Lehman Brothers Aggregate Bond Index. In addition, the firms in aggregate had net inflows of client assets of $2.6 billion, or 1.7% of 2001 yearend assets of $149.9 billion, and divestitures of nonstrategic firms accounted for a reduction of $12.1 billion or 8.1% of yearend assets. As of September 30, the group managed a total of $122.1 billion.
"In the face of a very challenging time for almost all markets, the U.S. asset management operations of Old Mutual performed well when compared to the broad equity indices and actually produced significant, positive net client cash flow during the first three quarters," said Scott Powers, chief executive of Old Mutual's U.S. asset management operations. "The diversity of asset classes and investment styles, strong relative investment performance and the depth of experience at our firms proved once again to be our greatest strengths."
Overall fund flows continued to be positive with flows from Fidelity & Guaranty Life Insurance Company into Dwight Asset Management continuing to be strong. Detailed information on the asset breakdown for each of the firms is available from the group's website at http://www.oldmutualus.com.
The five new funds sub-advised by Old Mutual firms which were introduced to Pilgrim Baxter's PBHG Funds in December and January have attracted $1.3 billion in investor assets in the first three quarters of 2002, led by PBHG IRA Capital Preservation, sub-advised by Dwight Asset Management, and PBHG Clipper Focus, sub-advised by Pacific Financial Research. The total assets in the sub-advised funds stand at $1.6 billion on September 30. More information on these investment strategies and performance of each of the funds is available at http://www.pbhgfunds.com.
The divestiture of NWQ to Nuveen Investments was completed in the third quarter 2002. In total, 14 firms have been divested since Old Mutual's acquisition of United Asset Management Corp. in September 2000.
Notes to Editors
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 $4.8 billion as of October 18, 2002. More information on Old Mutual is available at www.oldmutual.com.