River and Mercantile Group PLC Trading Statement (1681M)

TIDMRIV

RNS Number : 1681M

River and Mercantile Group PLC

11 October 2016

11 October 2016

River and Mercantile Group PLC

Trading Update

River and Mercantile Group PLC (R&M), the advisory and investment management business today provides a trading update. This comprises Assets under Management (AUM) and Notional under Management (NUM) for the three months ended 30 September 2016.

Highlights for the three months ended 30 September 2016:

   --     Fee earning AUM/NUM increased by 9% to GBP27.9bn. 

-- Net inflows were GBP1.3bn in the period, with net sales of GBP0.9m and positive rebalancing flows in Derivative Solutions of GBP0.4bn.

-- Investment performance added GBP1bn with strong performance across all Divisions in the period.

   --     Performance fees earned in the quarter ended 30 September 2016 were GBP2.3m. 

Mike Faulkner, CEO of River and Mercantile, said:

"The first quarter AUM/NUM shows growth in all divisions from both strong net flows and positive investment performance. This growth further drives in-force revenue demonstrating continued progress against our strategy."

Assets Under Management (AUM) and Notional Under Management (NUM)

 
                                   Assets Under Management (AUM) and Notional Under Management (NUM) 
 
                                                                   Equity Solutions 
                                                          ---------------------------------- 
                             Fiduciary      Derivative 
 GBP'm                       Management      Solutions     Wholesale   Institutional   Total   Total AUM/NUM 
                           -------------  --------------  ----------  --------------  ------  -------------- 
                               (AUM)           (NUM)         (AUM)         (AUM)       (AUM) 
 Opening Fee Earning 
  AUM/NUM                          9,287          13,903       1,171           1,187   2,358          25,548 
 Sales                               307             767          90             117     207           1,281 
 Redemptions                        (88)            (37)       (109)           (158)   (267)           (392) 
                                                                                              -------------- 
                                     219             730        (19)            (41)    (60)             889 
 Net Rebalance                         -             445           -               -       -             445 
 
 Net Flow                            219           1,175        (19)            (41)    (60)           1,334 
 
 Investment Performance              660               -         169             180     349           1,009 
 Fee Earning AUM/NUM              10,166          15,078       1,321           1,326   2,647          27,891 
 
 Mandates in Transition 
  (30 June 2016)                       -             170           -               -       -             170 
 Transitions/Adjustments               -              20           -               -       -              20 
                                                                                              -------------- 
 Mandates in Transition 
  (30 September 2016)                  -             190           -               -       -             190 
 
 Redemptions in 
  Transition (30 June 
  2016)                             (49)           (590)           -               -       -           (639) 
 Transitions                         (1)            (13)           -               -       -            (14) 
                                                                                              -------------- 
 Redemptions in 
  Transition (30 
  September 2016)                   (50)           (603)           -               -       -           (653) 
                           ------------- 
 Mandated AUM/NUM                 10,116          14,665       1,321           1,326   2,647          27,428 
                           =============  ==============  ==========  ==============  ======  ============== 
 
 Increase/(Decrease) in 
  Fee Earning Assets                9.5%            8.5%       12.8%           11.7%   12.3%            9.2% 
                           -------------  --------------  ----------  --------------  ------  -------------- 
 Increase/(Decrease) in 
  Mandated Assets                   9.5%            8.8%       12.8%           11.7%   12.3%            9.4% 
                           -------------  --------------  ----------  --------------  ------  -------------- 
 

Notes to editors:

River and Mercantile Group PLC (R&M) is an advisory and investment solutions business with a broad range of services, from consulting and advisory, to fully delegated fiduciary management and fund management.

R&M is focussed on creating investment solutions for institutional pension schemes, insurance and financial intermediaries and operates through four divisions: Investment Solutions encompassing both advisory and fiduciary management, Derivative Solutions providing structured equity and LDI, Equity Solutions providing UK and global equity strategies and Multi Asset Solutions, providing dynamic asset allocation and other multi asset based solutions.

The Group has GBP28bn under management, including GBP15bn of derivatives.

For further information please contact:

River & Mercantile Group PLC [phone]

Kevin Hayes, Chief Financial Officer

Chris Rutt, Deputy Chief Financial Officer and Investor Relations

Forward-looking statements

This announcement contains forward-looking statements with respect to the financial conditions, results and business of the Group. By their nature, forward looking statements involve risk and uncertainty because they relate to events, and depend on circumstances that will occur in the future. River and Mercantile Group's actual results may differ materially from the results expressed or implied in these forward looking statements. Nothing in this announcement should be construed as a profit forecast

Notes:

Assets Under Management (AUM) represents the assets over which we act either as a discretionary investment manager on a partial or fully delegated basis in accordance with an investment management agreement.

Notional Under Management (NUM) represents the aggregate notional of derivative contracts and is the basis on which management fees are charged.

Net rebalance in the Derivative Solutions division represents the net change in billing notional values of Derivatives from existing client mandates and can increase or decrease based on changes in the underlying hedging strategies.

Fee Earning AUM/NUM represents amounts on which management fees and performance fees are charged.

Mandates in Transition represent the AUM/NUM of mandates which have been awarded by clients at the period-end date and will transition into fee earning assets. The timing, and ultimate amount transitioned is determined by the client. We report an estimated AUM/NUM for those mandates where there is a high likelihood of the amount being transitioned within the next three months.

Redemptions in transition are redemptions which have been notified by the client at the period-end date, but where the AUM/NUM is included in fee earning assets at period end. The redemptions will be included in a future period.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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October 11, 2016 02:00 ET (06:00 GMT)