River And Mercantile Share Discussion Threads

[its the oxman] 24/9/2018 09:26

Results look pretty decent. Nice divs to come as well.

[speedsgh] 21/8/2018 16:09

Notice of Preliminary Results -

River and Mercantile Group PLC (R&M) will announce its preliminary results on Monday 24 September 2018.

[topvest] 08/8/2018 18:05

Yes, nice to see it bouncing back. It’s a fine business.

[lord gnome] 08/8/2018 16:33

Up strongly today. Have this been tipped somewhere?

[speedsgh] 31/7/2018 19:02

Trading Statement (30/7/18) -

Highlights for the three months ended 30 June 2018:

· Fee earning AUM/NUM increased by 2.7% to £33.8bn.
· Net inflows for the quarter were £0.6bn, equivalent to 1.8% of opening AUM/NUM.
· Sales for the period were £1.1bn, including £0.4bn of new structured equity derivatives.
· Redemptions in the period were £0.5bn, including £0.1bn of maturing structured equity derivatives.
· Investment performance added £0.3bn and was positive across all divisions.

Highlights for the 12 months ended 30 June 2018:

· Fee earning AUM/NUM increased by 9.0% in the year to £33.8bn.
· Net inflows for the 12 months were £2.1bn, equivalent to 6.8% of opening AUM/NUM.
· Sales for the period were £5.7bn, including £3.9bn from Derivative Solutions and £1.3bn from Equity Solutions.
· Redemptions in the period were £4.6bn, including £1.5bn of maturing structured equity derivatives from a single client which had met its investment objectives.
· Investment performance generated £0.7bn and was positive across all divisions.

Mike Faulkner, CEO of River and Mercantile, said:

"During the quarter we experienced solid growth during a period of financial market volatility. Derivative Solutions performed particularly well delivering strong flows in the period. Fiduciary Management and Equity Solutions experienced tougher conditions with respect to flows, but investment performance in these areas supported overall AUM growth. This demonstrates again the benefit of how the diversified nature of our business lines produces stable growth.

Our progress during the twelve months and our strong pipeline means that we end our financial year well positioned to continue our revenue growth in line with our strategic objectives.

The long term investment performance of our funds and mandates1 remains above benchmark.

As a result of investment in people during the year we anticipate that our remuneration ratio on underlying revenue will be approximately 54% for the year, representing around 52% of ongoing underlying revenue and 2% for investment initiatives. We have continued to expand our distribution and client engagement capabilities, most recently in New York and Australia, to help drive growth in our business in addition to the existing pipeline. We continue to invest in our research and development activities, in particular in solutions that can deliver scalable investment capacity, for example global macro and emerging markets."

[speedsgh] 18/7/2018 09:46

Another purchase by Fund Manager, Hugh Sergeant who has bought an aggregate of just under £38k worth of shares...

Director/PDMR Shareholding -

11/7/18 Hugh Sergeant (Fund Manager) bought 10,000 @ 278p = £27,800
12/7/18 Hugh Sergeant (Fund Manager) bought 3,650 @ 271.7p = £9,917


Updated overview of recent Director/PDMR Shareholding activity...

11/7 Hugh Sergeant (Fund Manager) bought 10,000 @ 278p = £27,800
12/7 Hugh Sergeant (Fund Manager) bought 3,650 @ 271.7p = £9,917
9/7 Christopher Rutt (Deputy CFO) bought 3,578 @ 279.48p = £9,999
6/7 Kevin Hayes (CFO) bought 18,939 @ 267p = £50,567
26/6 Hugh Sergeant (Fund Manager) bought in aggregate 11,750 @ 273.45p = £32,130
25/6 Mrs Anne Rosemary Dawson (PCA to Jonathan Dawson, Chairman) bought 30,000 @ 272p = £81,600
25/6 James Barham (CEO) bought 10,000 @ 270p = £27,000
22/6 James Barham (CEO) bought 12,000 @ 280p = £33,600
22/6 James Barham (CEO) bought 3,000 @ 273.5p = £8,205
15/6 Kevin Hayes (CFO) bought 33,323 @ 298p = £99,302
30/4 Kevin Hayes (CFO) bought 24,110 @ 309p = £74,499
27/4 Kevin Hayes (CFO) bought 8,000 @ 310p = £24,800

[speedsgh] 10/7/2018 13:06

Small change purchase by Deputy CFO Christopher Rutt who has bought just under £10k worth of shares...

Director/PDMR Shareholding -

9/7/18 Christopher Rutt (Deputy CFO) bought 3,578 @ 279.48p = £9,999


Updated overview of recent Director/PDMR Shareholding activity...

9/7 Christopher Rutt (Deputy CFO) bought 3,578 @ 279.48p = £9,999
6/7 Kevin Hayes (CFO) bought 18,939 @ 267p = £50,567
26/6 Hugh Sergeant (Fund Manager) bought in aggregate 11,750 @ 273.45p = £32,130
25/6 Mrs Anne Rosemary Dawson (PCA to Jonathan Dawson, Chairman) bought 30,000 @ 272p = £81,600
25/6 James Barham (CEO) bought 10,000 @ 270p = £27,000
22/6 James Barham (CEO) bought 12,000 @ 280p = £33,600
22/6 James Barham (CEO) bought 3,000 @ 273.5p = £8,205
15/6 Kevin Hayes (CFO) bought 33,323 @ 298p = £99,302
30/4 Kevin Hayes (CFO) bought 24,110 @ 309p = £74,499
27/4 Kevin Hayes (CFO) bought 8,000 @ 310p = £24,800

[its the oxman] 09/7/2018 13:00

Persistent selling seems to have dried up since the update, hopefully it can now retrace to 300p short term

[speedsgh] 09/7/2018 11:46

TRADER'S TIPS: City insiders say buy asset management company River and Mercantile but sell property website Rightmove -

[speedsgh] 09/7/2018 11:43

CFO Kevin Hayes has bought another £50k worth of shares...

Director/PDMR Shareholding -

6/7/18 Kevin Hayes (CFO) bought 18,939 @ 267p = £50,567


Updated overview of recent Director/PDMR Shareholding activity...

6/7 Kevin Hayes (CFO) bought 18,939 @ 267p = £50,567
26/6 Hugh Sergeant (Fund Manager) bought in aggregate 11,750 @ 273.45p = £32,130
25/6 Mrs Anne Rosemary Dawson (PCA to Jonathan Dawson, Chairman) bought 30,000 @ 272p = £81,600
25/6 James Barham (CEO) bought 10,000 @ 270p = £27,000
22/6 James Barham (CEO) bought 12,000 @ 280p = £33,600
22/6 James Barham (CEO) bought 3,000 @ 273.5p = £8,205
15/6 Kevin Hayes (CFO) bought 33,323 @ 298p = £99,302
30/4 Kevin Hayes (CFO) bought 24,110 @ 309p = £74,499
27/4 Kevin Hayes (CFO) bought 8,000 @ 310p = £24,800

[lord gnome] 09/7/2018 09:42

In with a few this morning. Good yield, positive bounce off support and a decent trading update. Should do nicely from here.

[its the oxman] 06/7/2018 21:23

Yes very positive, shame the update didn't come before the price collapsed sub 300p but never mind. Certainly looks decent value now with some scope to bounce.

[topvest] 06/7/2018 15:11

A very good update. Its a well run operation. I was getting ready to add more, but missed the opportunity. Its definitely a strong buy in the £2 - £2.50 range. Bought some Esure instead.

[varies] 06/7/2018 12:17

At first sight RIV shares look very cheap compared with those (for example) of IPX.
RIV has a combined AUM/NUM of £33.8 billion and a market cap of £218 million whereas IPX has AUM of £11bn and a Mkt cap of £264m.
I refer to IPX as this has proved one of my best investments over the last 2 years and seems a very well run company. Its funds have done well and attracted new investors.

A crucial factor, however, is the high proportion of RIV's profits that are taken directly by its directors (as mentioned by other contributors here). Directors' fees with bonuses etc seem to be about double the dividends that are paid to shareholders. Even so, the yield is generous if it can be maintained.
On balance I am inclined to buy some RIV shares but shall wait rather nervously until I feel more confident about world stock markets as a whole. There may be some turbulence ahead.

[speedsgh] 06/7/2018 11:17

Trading Statement -

FCA competition matter

The Group has reduced the amounts recognised in respect of the FCA competition matter to a provision of £109,000, from a provision of £1 million1.

The Group received guidance from the FCA on the likely quantum of penalty should one be imposed. The provision has been adjusted to reflect this guidance.

Mike Faulkner, CEO of River and Mercantile, said:
"The Group continues to co-operate fully with the FCA in this complex matter and we will provide further updates when the FCA reaches its final decision in due course."

Update on trading

Highlights for the two months ended 31 May 2018:

· Fee earning AUM/NUM increased by 2% to £33.8bn.
· Sales for the period were £0.8bn.
· Redemptions in the period were £0.4bn, including £0.1bn of maturing structured equity transactions, and £127m and £82m from the UK Smaller Companies Fund and the UK Dynamic Fund, respectively.
· Investment performance added £0.4bn and was positive across all divisions.

Highlights for the 11 months ended 31 May 2018:

· Fee earning AUM/NUM increased by 9% to £33.8bn.
· Sales for the period were £5.4bn, including £1.2bn from Equity Solutions and £3.7bn from Derivative Solutions.
· Redemptions in the period were £4.5bn, including £1.5bn of maturing structured equity transactions from a single client which had met its objectives.
· Net inflows for the 11 months were £2.0bn, equivalent to 6% of opening AUM/NUM.
· Investment performance generated £0.7bn and was positive across all divisions.

The Group's 12 month trading update will be published on 30 July 2018.

Mike Faulkner, CEO of River and Mercantile, said:
"The business continues to perform well. Flows and our forward pipeline - in particular in Equities, Derivatives and new investment strategy development - remain strong.

Fiduciary Management and Advisory growth has been slower, however this is in line with the expectations and guidance that we have historically provided to the market given the stage of the cycle and the strong equity market rallies that we have seen over the last 12 months.

The long term investment performance of our funds and mandates2 remains above benchmark.

As outlined in my CEO Statement in last year's Annual Report, our business has a range of complementary strategies, from advisory, asset allocation, equities and derivative strategies which allows us to be relevant to our clients through providing investment solutions across all phases of the market.

We currently consider that we are in a downturn phase of risk markets and therefore have been advising clients to adopt more defensive positions. As a result we expect to see continued interest in structured equity strategies, along with our absolute return strategies, which include Global Macro.

We recently publicised the expansion of our distribution and client management capabilities through hiring senior individuals and the opening of new offices in both New York and Australia. Our New York office will complement our existing and growing presence in the market with offices in Boston, Chicago and Denver.

We will continue to build our global presence in markets where we see client need for our proven approach in engaging with sophisticated investors and our ability to design investment solutions to meet their specific needs.

We are excited by the outlook and the opportunities that exist. We continue to be well positioned to grow the business in line with the guidance given to the market."

[its the oxman] 27/6/2018 22:29

Feels very oversold, time will tell come the next update.

[speedsgh] 27/6/2018 07:56

Overview of recent Director/PDMR Shareholding activity...

26/6 Hugh Sergeant (Fund Manager) bought in aggregate 11,750 @ 273.45p = £32,130
25/6 Mrs Anne Rosemary Dawson (PCA to Jonathan Dawson, Chairman) bought 30,000 @ 272p = £81,600
25/6 James Barham (CEO) bought 10,000 @ 270p = £27,000
22/6 James Barham (CEO) bought 12,000 @ 280p = £33,600
22/6 James Barham (CEO) bought 3,000 @ 273.5p = £8,205
15/6 Kevin Hayes (CFO) bought 33,323 @ 298p = £99,302
30/4 Kevin Hayes (CFO) bought 24,110 @ 309p = £74,499
27/4 Kevin Hayes (CFO) bought 8,000 @ 310p = £24,800

[speedsgh] 27/6/2018 07:53

Director/PDMR Shareholding -

26/6 Hugh Sergeant (Fund Manager) bought in aggregate 11,750 @ 273.45p = £32,130

[topvest] 26/6/2018 16:38

Just the usual ebb and flow. Maybe worth another top-up if it pulls back any more. This is a high quality growth company in my view.

[speedsgh] 26/6/2018 14:48

Director/PDMR Shareholding -

25/6 James Barham (CEO) bought 10,000 @ 270p = £27,000
22/6 James Barham (CEO) bought 12,000 @ 280p = £33,600
22/6 James Barham (CEO) bought 3,000 @ 273.5p = £8,205

[stopaloss] 26/6/2018 12:30

Financials seem to be under pressure recently including those with loose association. I have BARC, LLOY, ARW and RFX and they have all suffered over the last few days for no apparent reason other than the usual and ongoing Brexit and interest rate uncertainties. I am also looking to get into RIV but will wait for the dust to settle.

[speedsgh] 25/6/2018 20:51

Director/PDMR Shareholding -

25/6 Mrs Anne Rosemary Dawson (PCA to Jonathan Dawson, Chairman) bought 30,000 @ 272p = £81,600

[topvest] 23/6/2018 07:13

Maybe another good top-up opportunity here. There is nothing to suggest that RIV is not going to to be continued big success. I won't add when the share price is dropping as it is, but will look to add more when it flattens. EPS is close in the 18-20p range so starting to look cheap again.

[speedsgh] 18/6/2018 08:48

CFO has been adding again...

Director/PDMR Shareholding -

15/6 Kevin Hayes (CFO) bought 33,323 @ 298p = £99,302
30/4 Kevin Hayes (CFO) bought 24,110 @ 309p = £74,499
27/4 Kevin Hayes (CFO) bought 8,000 @ 310p = £24,800