River And Mercantile Share Discussion Threads

[speedsgh] 16/3/2020 18:03

Another small purchase today, this time by a PCA to the chairman. All purchases today relatively immaterial in the scale of things...



16/3/20 Mrs Anne Rosemary Dawson (PCA to Chairman Jonathan Dawson) bought 10,800 RIV @ 184.3p = £19,904

[speedsgh] 16/3/2020 14:50

Charts in header not working today. Current spread 175-185p. CEO & PCA to CEO have added a few in the chaos...



16/3/20 CEO James Barham bought 10,600 RIV @ 185p = £19,610
16/3/20 Mrs Lulu Barham (PCA to CEO James Barham) bought 10,600 RIV @ 185p = £19,610

[lord gnome] 16/3/2020 08:09

I'm out. GLA.

[speedsgh] 21/2/2020 18:34

Sacked River and Mercantile manager Rodrigs resurfaces -

... Rodrigs said he was 'itching to get back into investing' after a two-year hiatus following his sacking by River and Mercantile in 2018. The manager said his dismissal from the fund group was still an 'ongoing and open matter', limiting what he could say, though he added he 'strongly disputed' his firing.

'The issue at stake was my attendance at a normal industry event,' he said, adding that around 20 other investment professionals had attended, with no others having been dismissed to the best of his knowledge...

[speedsgh] 21/2/2020 14:58

Seems a fairly decisive break out from the 2yr downtrend. Looks encouraging. Looking fwd to results.

[lord gnome] 21/2/2020 12:34

Trades going through at 300. I have a strong feeling that next month's results will not disappoint.

[lord gnome] 12/2/2020 12:08

Still going up on very small volumes. Almost every buy sees a tick higher. Now in the black for the first time since I bought. Looks like you might just get your 300, Oxman.

[its the oxman] 11/2/2020 09:10

Results in March I believe and given underlying trading seems pretty good, I cling to the hope of seeing 300p one day.

[topvest] 04/2/2020 21:07

Yes, I rate their analysis. They are a very well run group, led by some really quality individuals. The group has a very bright future ahead, which is not generally factored into the share price. Slightly under the radar! Happy with that and will keep topping up when it dips.

[speedsgh] 04/2/2020 09:16

EI - Yes, it is always interesting to read what their proprietary FOURcast system is prediciting...

"Our view on markets continues to be positive with our River FOURcast indicating Stable market conditions. We believe expectations for economic growth will increase and credit conditions strengthen, setting a supportive environment for asset markets in general and equities in particular. Within equities, conditions should favour value style investing, especially given the attractive starting point."

[essentialinvestor] 03/2/2020 23:30

Don't hold but do read their equity markets outlook comments.

[speedsgh] 03/2/2020 23:24

Thought this sounded fairly positive too..."We are also beginning to see a growing pipeline of opportunities more broadly across the business and we expect these to materialise later in the year."

[topvest] 03/2/2020 21:05

A bit steady as she goes, but doing ok. This was the main positive for me as it's quite a big win:

Since the calendar year end, we have been appointed by a range of additional clients which include a new Fiduciary client mandate of £1.16bn (Fiduciary Management AUM: £630m and Derivatives NUM: £530m). This mandate was signed in January and will transition by the end of this quarter. We are delighted with this appointment, which was based on both the strength of our investment performance (Fiduciary Management annualised return of 10% since 2003) and the innovative solutions that we provide.

[speedsgh] 03/2/2020 11:33

Second Quarter Trading Update -

Summary of the three months ended 31 December 2019:

· Fee earning AUM/NUM increased in the quarter by 1.4% to £42.3bn.
· In the quarter ended 31 December 2019:
- Gross Sales were £1.8bn;
- Net flows were £0.7bn;
- Net Sales ratio was 1.8% of opening AUM/NUM at 1 October 2019; and
- Investment performance was negative £160m or 0.4% of opening AUM/NUM.

Summary of the six months ended 31 December 2019:

· Fee earning AUM/NUM increased in the six months by 6.2% to £42.3bn.
· In the six months ended 31 December 2019:
- Gross Sales were £3.0bn;
- Net flows were £1.8bn;
- Net Sales ratio was 4.4% of opening AUM/NUM at 1 July 2019; and
- Investment performance was positive across all Divisions, adding £0.7bn or 1.8% of opening AUM/NUM.

James Barham, Group Chief Executive, commented:

This quarter has seen positive net sales for our Wholesale business for the first time since the fourth quarter of 2017. This reflects strongly on the team led by David Hanratty who joined the business as Global Head of Distribution last year and demonstrates the clear commitment to invest in the broader distribution capabilities of the Group. I will discuss this in greater depth along with our longer term plans when we announce our interim results in early March.

The net sales ratio for the first half, which measures all client flows, was 4.4% of opening AUM/NUM and the investment return ratio added a further 1.8% of opening AUM/NUM. The combination of net sales and investment performance has generated growth in AUM/NUM of 6.2% in the first half. This is an encouraging outcome at this stage and in line with our total growth rate target of 12% pa.

In the first six months investment performance was positive across all divisions adding £0.7bn in AUM. Again, we have seen the benefits of having our Group divisions diversified in terms of investment exposures with Fiduciary Management performing particularly strongly in the first quarter whereas Equity Solutions investment performance was stronger in the second.

Our view on markets continues to be positive with our River FOURcast indicating Stable market conditions. We believe expectations for economic growth will increase and credit conditions strengthen, setting a supportive environment for asset markets in general and equities in particular. Within equities, conditions should favour value style investing, especially given the attractive starting point.

Since the calendar year end, we have been appointed by a range of additional clients which include a new Fiduciary client mandate of £1.16bn (Fiduciary Management AUM: £630m and Derivatives NUM: £530m). This mandate was signed in January and will transition by the end of this quarter. We are delighted with this appointment, which was based on both the strength of our investment performance (Fiduciary Management annualised return of 10% since 2003) and the innovative solutions that we provide.

We are also beginning to see a growing pipeline of opportunities more broadly across the business and we expect these to materialise later in the year. In addition, we have seen a number of our Solutions clients meet their objectives and following strong investment outcomes are able to reduce their liabilities through insurance. We see this as a positive client outcome in spite of the negative impact on our underlying assets under management or advice.

[its the oxman] 10/1/2020 11:36

Hoping a positive January update could drive this toward 300p. Agree very well run but also strangely unloved by the market.

[its the oxman] 02/1/2020 12:38

Can't believe we are still struggling to break clear of 250p

[topvest] 27/12/2019 08:49

I've added a few more recently. Purchased these four times now. I think its a really well run group.

[its the oxman] 24/12/2019 12:44

Be nice to touch 300p again , not sure how that's gonna happen though.

[its the oxman] 23/12/2019 16:22

Modest bounce ,260p.

[topvest] 22/12/2019 21:53

Of course, active managers are under pressure at the moment but River and Mercantile are still growing at c5-10% per annum.

For what its worth, I think passive investors will get a bit of a shock when the tech bubble bursts & there is some reversion to the mean!

Did you know that the market cap of Apple and Walt Disney > All German companies?

Amazon and Google > All French listed companies.

What a mad valuation world we live in!!

[topvest] 22/12/2019 21:45

2019 statutory accounts just filed at Companies House for River and Mercantile Investments Limited, the main subsidiary of the Group.

Quite a clear demonstration of how investment management businesses can achieve a ROCE of in excess of 100% consistently!

Rounded numbers

2019 RESULTS
Turnover £47m, PBT £20m, PAT £18m, Net assets £17m.

2018 RESULTS
Turnover £43m, PBT £18m, PAT £16m, Net assets £16m.

Nice!

[rogerbridge] 13/12/2019 19:35

This has been in my ISA for some time, aI wish that I had bought more. Hoping for further progress now the political situation is clearer.

[its the oxman] 11/12/2019 12:35

Added a few today 229p.

[topvest] 28/11/2019 17:55

I’m looking to add a few more.