River And Mercantile Share Discussion Threads

[topvest] 26/10/2021 11:03

I presume Mike Faulkner is off to Schroders as well?

[spectoacc] 26/10/2021 11:02

Pleased to see they're talking about returning much of the proceeds, not that I've much interest here any more.

Very well done @topvest, you called this from nearly half the current s/p.

[topvest] 26/10/2021 11:00

Deal announced then. Fairly positive. What's the next step though as the remaining business will be very small. Maybe Assetco will merge with this?

[speedsgh] 25/10/2021 19:03

Schroders swoops for River & Mercantile arm in £230m deal -

One of Britain's biggest fund managers is in advanced talks to acquire a division of one of its smaller rivals in a deal that will take its assets under management across the £750bn threshold.

Sky News has learnt that Schroders could announce the purchase of River and Mercantile Group's (R&M) solutions business as soon as Tuesday morning.

Sources said that Schroders, which manages £717bn on behalf of clients, has agreed to pay approximately £230m for the R&M unit, which has around £43bn of assets under management (AUM).

The sale price is expected to be viewed positively for R&M, representing a boost for AssetCo, the vehicle taken over by fund management veteran Martin Gilbert and which owns a sizeable stake in the company.

It emerged in August that R&M had appointed Fenchurch Advisory and Lazard to field bids for the group's fiduciary arm, which manages money for pension funds.

R&M has decided to focus on faster-growing and more profitable businesses instead.

Earlier this year, R&M poached a senior executive from Abrdn, the group that Mr Gilbert helped to create as Aberdeen Asset Management, to join its board.

For Schroders, the purchase of the R&M Solutions business will be the latest in a string of bolt-on acquisitions, some of which have been focused on the fast-growing area of natural capital.

Bloomberg News reported in May that Schroders had also explored, but decided against, a much larger deal: a takeover of London-listed M&G.

Schroders and R&M both declined to comment.

[speedsgh] 22/10/2021 13:19

Final Results should be due any time now. They were released on 8 Oct last year.

[spectoacc] 11/8/2021 08:18

Thanks @topvest. Does sound like they're going to get a good price, but agreed - how much of this is Gilbert? Any of it, all of it?

[topvest] 10/8/2021 20:42

I'm not impressed on Martin Gilbert's impact on RIV. Do they really want to sell the Solutions business / are they being pressured by Gilbert to do so? It looks a nice business to me growing assets at a steady rate. Fair enough if a party offers a top dollar price, but otherwise I'd like Gilbert to step down and RIV to carry on as is and find an equity asset manager to add into the mix.

[spectoacc] 10/8/2021 11:51

More decent news this morning, but taking the opportunity to sell down remaining few.

Good luck holders.

[its the oxman] 01/8/2021 22:27

Consider myself lucky, I sold out of this when it was last close to 300p for a modest profit. Can't say I see any strong reason to buy back any time soon unless a bid is coming, prefer catch up outlook for RAT though even there the share performance seems very lacklustre.

[topvest] 29/7/2021 22:02

A fairly positive update I thought, but has a bit of a bid defence feel to it with Martin Gilbert no doubt putting some pressure on. More than happy to hold and may add a few more when the time is right.

[speedsgh] 29/7/2021 17:59

Trading Statement -

"Delivering against strategic plan with strong sales momentum in Solutions and Wholesale"

River and Mercantile Group PLC ("R&M"), the asset management and investment solutions business, today provides a trading update for the twelve months and six months ended 30 June 2021.

James Barham, Group Chief Executive commented:

"The investments we have made in Wholesale and Institutional distribution, alongside the deepening and broadening of our investment capabilities have delivered earlier than anticipated. Wholesale distribution improved strongly with net positive sales of £0.6bn compared to the previous year and we have had a successful CMA retendering process retaining 90% of relevant clients' assets through the process and we have won 12 new clients during the period with total assets including assets in transition totalling £4.9bn. This, combined with strong investment performance, positions the Group very well for continued strong growth over the coming years."

Summary of the twelve months ended 30 June 2021:

· Fee earning AUM increased in the twelve months by 7.7% to £47.6bn.
- Gross sales were £4.3bn;
- Net flows were £1.4bn;
- Net flow ratio was +3.2% of opening AUM; and
- Investment performance was positive £2.0bn or +4.5% of opening AUM.

Summary of the six months ended 30 June 2021:

· Fee earning AUM increased in the six months by 4.1% to £47.6bn.
- Gross sales were £2.4bn;
- Net flows were £1.3bn;
- Net flow ratio was +2.9% of opening AUM; and
- Investment performance was positive £0.6bn or +1.2% of opening AUM.

Group Highlights

· The business has performed strongly and is responding well to the investments made;
· Excellent investment performance across the business with 92% of funds and strategies by AUM outperforming relevant benchmarks over the last 12 months;
· 90% of Fiduciary AUM retained through the CMA process and £1.2bn of new wins during the year;
· An improvement in our RFP and pitch success rate and as a result a growing pipeline of opportunities;
· This has led to 12 new Fiduciary clients wins during the year, delivering an additional £4.9bn of Fiduciary and Derivative AUM and assets in transition;
· Wholesale gross sales have grown by 180% over the last twelve months with an improvement in net positive sales of £0.6bn from the previous year;
· Wholesale pipeline is building strongly and is well positioned for the coming period;
· European fund launched and as of 29th July 2021 is £80m; and
· Infrastructure team recruited and Infrastructure Equity Income fund readied for launch;

[essentialinvestor] 18/3/2021 15:20

How sustainable are performance fees on those active funds?.

Might question that one.

[topvest] 17/3/2021 19:39

Interim results today. I would describe them as mixed, but promising.

The last sentence is interesting...

"Outlook

I am encouraged by the impact the investment in distribution is having on our business. We are focussed on returning the Group's underlying profit margin back to historic levels. We believe we have made the right investments in people to enable River and Mercantile to take advantage of the attractive growth opportunities that we have identified, to continue to deliver strong investment returns for our growing client base, and to provide longer-term value to shareholders.

As the CMA retender process must complete by June 2021 and given the strength of our pipeline we are confident that in the short to medium term there should be significant opportunity to grow Investment Solutions as a result of pent-up activity since the CMA review began in 2017. Asset Management is ideally positioned to enhance its capabilities in a market place that is increasingly in demand.

River and Mercantile has developed an exciting range of products and solutions in markets where there is substantive and growing demand and the early signs are very positive.

The Board however is very conscious of the continuing weak share price: we are determined to address this with urgency to deliver value for shareholders."

It looks and feels like Martin Gilbert is exerting pressure. I'm happy to hold for the long-term and not sure Martin Gilbert is going to add too much unless he has an equity asset manager going cheap that they can fold-in.

[topvest] 09/2/2021 20:34

I certainly hope not. I would prefer it if their aim is to assist a fine and able management team here at RIV take it to the next stage. I want to see RIV grow and become a multi-bagger.

Martin Gilbert doesn't want to be a CEO any longer. To be honest, I am not sure he's done a great job of late. He was good 10-20 years ago but Aberdeen Asset Management lost its way more recently, hence the merger with Standard Life. Even that was not a great success, so far anyway. Then again. quality and value hasn't been a great place to be in the last decade.

[qs99] 09/2/2021 11:58

well presume they will try and takeover RIV no? DYOR

[spectoacc] 08/2/2021 07:35

Assetco really having to shell out for more - very good sign.

[topvest] 07/2/2021 13:11

Re post 170 just taken a look:

Per the RMMC annual report announcement.
As at 30 September 2020, performance fees accrued were £1,046,428 (30 September 2019: £nil) as the Company's NAV total return is currently outperforming the benchmark. No performance fees were paid during the period (30 September 2019: £nil) as there has not been a redemption. Please refer to the Financial Highlights and Performance Summary for details of the Company's previous redemptions.

May be some more performance fees in the open ended portion as we11.

Certainly helpful to this year's result and at least performance fees will be > £nil!

[spectoacc] 26/1/2021 19:17

Raided Aviva for it, nice. Got to be worth a few more p.

[topvest] 26/1/2021 19:12

Another positive development:

[topvest] 21/1/2021 20:06

A material performance fee...at last!

Normally worth a couple of £m if my memory serves me correctly.

[essentialinvestor] 15/1/2021 11:00

Annoyed with myself on RIV, put in a limit order this day week
which was not filled (should have been more flexible on price)
and on Monday hesitated buying on what was a very nice opportunity
before the priced moved upwards.

Before Martin's appointment I did not see the buy case, but when the story
changes, etc..

[spectoacc] 15/1/2021 10:55

Small, but not fazed by price rise:

"The Company announces that Mr James Barham, Group Chief Executive of the Company, bought 10,000 ordinary shares of 0.003 pence each ("Ordinary Shares") at a price of 234.8 pence each on 14 January 2021. "

[topvest] 13/1/2021 20:35

I'm holding long term.

[stockstockham] 13/1/2021 10:22

Sold about 3/4rs into this rise, keeping the final 1/4 for 250p. Clearly something going to happen with RIV/consolidation, but already a good way above the 186p Gilbert paid for a few.

[essentialinvestor] 11/1/2021 20:00

topvest, congrats here.