OM Asset Management : OMAM Reports Financial and Operating Results for the Second Quarter Ended June 30, 2017

Brett Perryman ir@omam.com (617) 369-7300

• U.S. GAAP EPS of $0.11 per share, down (63.3)% from Q2 2016; U.S. GAAP earnings of $12.9 million, down (64.5)%

• Economic net income EPS of $0.42 per share, an increase of 40.0% from Q2 2016

• Economic net income of $46.6 million, an increase of 28.7% from the comparative quarter in 2016

• AUM of $258.8 billion at June 30, 2017, an increase of 3.6% from March 31, 2017 and 18.3% from June 30, 2016

• Net client cash flows ("NCCF") for the quarter of $(0.3) billion yielding an annualized revenue impact of $13.1 million

• Agreement in principle reached to sell OMAM's stake in Heitman to its management for $110 million

"OMAM's results for the second quarter reflect an enhanced operating and market environment as well as the successful execution of our growth strategy," said James J. Ritchie, OMAM's chairman and interim CEO. "Affiliate investment performance continued to improve, with assets representing 74%, 73% and 78% of revenue outperforming benchmarks on a one-, three- and five-year basis, respectively. While NCCF for the quarter was generally flat at $(0.3) billion on an AUM basis, average fees of 53 bps on inflows of

$8.1 billion into products such as global/non U.S. equities and alternatives offset average fees of 35 bps on outflows of $(8.4) billion. This fee differential on flows continued to drive fee rate expansion and produced annualized revenue impact from flows of $13.1 million, or 1.5% of beginning of period management fees. Our ENI operating margin increased by 233 bps, to 38%, compared to Q2 '16, and our ENI per share of $0.42 represents a year-over-year increase of 40%, driven by strong performance at our existing Affiliates, share buybacks, and accretion generated by our Landmark investment.

"Our results reflect the strength and quality of our Affiliate group, and also highlight the benefits of the aligned, profit sharing model that serves as the foundation for our business strategy. Our differentiated approach to working with our Affiliates, including our ability to help them diversify and enhance their businesses, continues to position us as a compelling partner for entrepreneurial boutique asset management firms."

Mr. Ritchie concluded, "Finally, Old Mutual plc made substantial progress in its managed separation process during the quarter, as it completed the sale of 9.95% of OMAM shares to HNA Capital and sold 19.895 million shares in an underwritten public offering and an additional five million shares to OMAM through a repurchase agreement. In connection with Old Mutual's managed separation process, OMAM provided an entity comprised of senior professionals of Heitman LLC with a "right of first offer" to buy OMAM's interest in the firm pursuant to the Heitman operating agreement. As a result of this process, yesterday the Company executed a non-binding term sheet reflecting an agreement to sell our interest in Heitman LLC for $110 million in cash. Heitman represents 12% of OMAM's AUM at June 30 and contributed 3% of ENI in the first half of 2017."

Table 1: Key Performance Metrics

($ in millions, unless otherwise noted) Three Months Ended June 30, Six Months Ended June 30,

U.S. GAAP Basis 2017 2016 (Decrease) 2017 2016

(1) Excludes restructuring charges associated with the CEO transition amounting to $5.4 million, net of taxes.

Please see "Definitions and Additional Notes." Please see Table 7 for a reconciliation of U.S. GAAP net income to economic net income.

At June 30, 2017, OMAM's total assets under management ("AUM") were $258.8 billion, up $9.1 billion, or 3.6%, compared to

$249.7 billion at March 31, 2017, and up $40.0 billion, or 18.3%, compared to $218.8 billion at June 30, 2016. The increase in AUM during the three months ended June 30, 2017 reflects net market appreciation of $9.4 billion, offset by net outflows of

$(0.3) billion.

For the three months ended June 30, 2017, OMAM's net flows were $(0.3) billion compared to $(2.5) billion for the three months ended March 31, 2017 and $(2.9) billion for the three months ended June 30, 2016. Gross inflows in the three months ended June 30, 2017 were $8.1 billion (compared to $8.2 billion in the first quarter of 2017 and $4.1 billion in the second quarter of 2016) and gross outflows and hard asset disposals were $(8.4) billion (compared to $(10.7) billion in the first quarter of 2017 and $(7.0) billion in the second quarter of 2016). Hard asset disposals of $(0.2) billion, $(0.1) billion, and

$(1.0) billion are reflected in the net flows for the three months ended June 30, 2017, March 31, 2017 and June 30, 2016, respectively. For the three months ended June 30, 2017, the annualized revenue impact of the net flows was $13.1 million, which compares to $0.8 million for the three months ended March 31, 2017 and $(3.4) million for the three months ended June 30, 2016 (see "Definitions and Additional Notes"). Gross inflows of $8.1 billion yielded approximately 53 bps, while gross outflows and hard asset disposals of $(8.4) billion in the same period yielded approximately 35 bps. Strong inflows in alternatives and Global/non-U.S. products have increased the positive spread between inflows and outflows.

For the six months ended June 30, 2017, OMAM's net flows were $(2.8) billion compared to $(0.5) billion for the six months ended June 30, 2016. Net client cash flows before hard asset disposals were $(2.5) billion, compared to $1.8 billion in the prior year. For the six months ended June 30, 2017, the annualized revenue impact of the net flows was $13.9 million compared to $3.9 million for the six months ended June 30, 2016 which reflects increased sales in higher fee strategies. Gross inflows of $16.3 billion in the six months ended June 30, 2017 yielded an average of 48 bps compared to 40 bps in the year- ago period while gross outflows and hard asset disposals of $(19.1) billion yielded 33 bps in the six months ended June 30, 2017 compared to 36 bps in the year-ago period.

Table 2: Assets Under Management Rollforward Summary

Derived average weighted NCCF

($ in billions) 3.4 0.2 (1.0) 3.6 1.1

* "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"

Condensed Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016 are provided in Table 3 below. At June 30, 2017, $15.0 million was outstanding on the Company's $350 million credit facility and the Company had total third

party borrowings of $407.5 million including $392.5 million of long-term bonds ($400.0 million face value, net of discount and fees). Shareholders' equity (attributable to controlling interests) amounted to $118.3 million. The Company's ratio of third party borrowings to trailing twelve months Adjusted EBITDA was 1.67x, just 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 $83.3 million at June 30, 2017, $65.0 million was held at Affiliates and $18.3 million was available at the Center.

In May 2017, in connection with the secondary public offering of the Company's ordinary shares by OM plc, the Company purchased and retired five million of its outstanding ordinary shares at a price of $14.55 per share, or $72.75 million in aggregate.

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 September 2016, the Company purchased $39.6 million of seed investments from OM plc under the terms of the Seed Capital Agreement, as amended. In July 2017, the Company purchased all remaining seed capital investments covered by the Seed Capital Agreement for $63.4 million (see Recent Events). Including both seed capital on its balance sheet as of June 30, 2017 ($44.6 million) and the investments purchased in July 2017, the Company has total seed holdings of $108.0 million based on a June 30, 2017 valuation date.

Table 3: Condensed Consolidated Balance Sheets

($ in millions) June 30, 2017 December 31, 2016

Cash and cash equivalents $ 83.3 $ 101.9

Investment advisory fees receivable 187.5 163.7

Investments 193.5 233.3

Other assets 767.3 759.1

Assets of consolidated Funds 47.6 36.3

Accounts payable and accrued expenses $ 161.7 $ 178.1

Due to related parties 106.7 156.3

Third party borrowings 407.5 392.3

Other liabilities 466.4 391.3

Liabilities of consolidated Funds 6.5 5.8

Shareholders' equity 118.3 164.0

Non-controlling interests, including NCI of consolidated Funds 12.1 6.5

Total liabilities and equity $ 1,279.2 $ 1,294.3

Third party borrowings / trailing twelve months Adjusted EBITDA 1.67x 1.88x

Consolidated Funds represent certain seed investments purchased from Old Mutual plc. Please see "Definitions and Additional Notes"

The Company's investment results improved in the second quarter of 2017. Table 4 below presents a summary of the Company's investment performance as of June 30, 2017, March 31, 2017, December 31, 2016 and June 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.

Table 4: Investment Performance

As of June 30, 2017, assets representing 74%, 73% and 78% of revenue were outperforming benchmarks on a 1-, 3- and 5-

year basis, respectively, compared to 46%, 59% and 75% at March 31, 2017; 49%, 55% and 73% at December 31, 2016; and 36%, 63% and 72% at June 30, 2016. Favorable active management results in the second quarter along with outperformance by two of our three largest liquid strategies helped boost performance significantly. One-year results also benefited from the rolling off of the impact of the 2016 Brexit vote and related under-performance in the year-ago quarter.

Table 5 below presents the Company's U.S. GAAP Statement of Operations. For the three months ended June 30, 2017 and 2016, diluted earnings per share was $0.11 and $0.30, respectively, a decrease of (63.3)%, and net income attributable to controlling interests was $12.9 million and $36.3 million, respectively, a decrease of $(23.4) million, or (64.5)%. Earnings per share calculations are impacted by the eleven million shares repurchased between June 30, 2016 and June 30, 2017 which contributed to a decrease in average diluted shares outstanding of (7.8) million, or (6.5)% for the three-month period and (6.7) million, or (5.6)%, for the six-month period. For the three months ended June 30, 2017, compared to the three months ended June 30, 2016, U.S. GAAP revenue increased $62.3 million, or 39.8%, from $156.5 million to $218.8 million, as a result of market appreciation, the impact of the Landmark acquisition in August 2016, higher performance fees and a continued shift to higher fee rate products. Expenses increased $93.4 million, or 83.0%, from $112.5 million for the three months ended

June 30, 2016, to $205.9 million for the three months ended June 30, 2017, primarily due to profit-driven increases in variable compensation and revaluation of Affiliate equity and profit interests, along with increases from the CEO transition costs.

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.