Source - RNS
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 £27.9bn.

·     Net inflows were £1.3bn in the period, with net sales of £0.9m and positive rebalancing flows in Derivative Solutions of £0.4bn.

·     Investment performance added £1bn with strong performance across all Divisions in the period.

·     Performance fees earned in the quarter ended 30 September 2016 were £2.3m.

 

 

 

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



£'m

Fiduciary Management


Derivative 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 £28bn under management, including £15bn of derivatives.

 

 

For further information please contact:

River & Mercantile Group PLC +44 (0)20 3327 5100

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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