TIDMRIV
RNS Number : 4939M
River and Mercantile Group PLC
31 July 2017
31 July 2017
River and Mercantile Group PLC
Trading Update
30 June 2017
River and Mercantile Group PLC (R&M), the investment
solutions business today provides a trading update for the three
and twelve months ended 30 June 2017.
Highlights for the three months ended 30 June 2017:
-- Fee earning AUM/NUM increased by 1% to GBP31.0bn.
-- Net inflows were GBP0.4bn in the quarter, with net sales of
GBP0.2bn and positive rebalancing flows in Derivative Solutions of
GBP0.2bn.
-- Performance fees in the three months ended 30 June 2017 are
estimated to be GBP6.7m, of which GBP5.0m relates to the Equity
Solutions division.
Highlights for the twelve months ended 30 June 2017:
-- Fee earning AUM/NUM increased by 22% to GBP31.0bn.
-- Net inflows were GBP3.8bn in the year, with net sales of
GBP2.2bn and positive rebalancing flows in Derivative Solutions of
GBP1.6bn.
-- Positive investment performance in all divisions added GBP1.7bn.
-- Performance fees for the twelve months ended 30 June 2017 are estimated to be GBP12.5m.
Mike Faulkner, CEO of River and Mercantile, said:
In the quarter, we grew assets and in-force revenue from
positive net flows and rebalance in Derivative Solutions. Our
client orientated solutions and low attrition rates have resulted
in positive net flows in each of the last thirteen quarters since
the IPO in 2014.
We remain well positioned to continue this growth and will
continue to invest in our operating platform, international
capabilities and new product launches.
This year has seen record aggregate performance fees of GBP12.5m
and our investment platform has delivered strong performance across
all of our divisions. I believe it is rare for any investment firm
to have this consistency across product offerings, and that is
testament to both the quality of our people and the focus of the
business on those areas we are confident we can do well.
Assets Under Management (AUM) and Notional Under Management
(NUM)
AUM/NUM for the three months ended 30 June 2017.
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 10,675 16,621 1,735 1,569 3,304 30,600
Sales 195 533 181 414 595 1,323
Redemptions (284) (512) (137) (198) (335) (1,131)
--------------
(89) 21 44 216 260 192
Net Rebalance - 246 - - - 246
Net Flow (89) 267 44 216 260 438
Investment
Performance (58) - 42 27 69 11
Fee Earning AUM/NUM 10,528 16,888 1,821 1,812 3,633 31,049
Mandates in - - - - - -
Transition (30 June
2017)
Redemptions in
Transition (30 June
2017) (2) (572) - - - (574)
Mandated AUM/NUM 10,526 16,316 1,821 1,812 3,633 30,475
=============== ================ ========== ============== ====== ==============
Increase/(Decrease)
in Fee Earning
Assets (1.4%) 1.6% 5.0% 15.5% 10.0% 1.5%
--------------- ---------------- ---------- -------------- ------ --------------
Increase/(Decrease)
in Mandated Assets (0.3%) (2.1%) 5.0% 1.9% 3.4% (0.9%)
--------------- ---------------- ---------- -------------- ------ --------------
Fiduciary Management closing fee earning AUM includes GBP141m
relating to the River and Mercantile Dynamic Asset Allocation
Fund.
AUM/NUM for the twelve months ended 30 June 2017.
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 969 2,800 666 656 1,322 5,091
Redemptions (650) (1,443) (407) (413) (820) (2,913)
--------------
319 1,357 259 243 502 2,178
Net Rebalance - 1,628 - - - 1,628
Net Flow 319 2,985 259 243 502 3,806
Investment Performance 922 - 391 382 773 1,695
Fee Earning AUM/NUM 10,528 16,888 1,821 1,812 3,633 31,049
Mandates in Transition
(30 June 2016) - 170 - - - 170
Transitions/Adjustments - (170) - - - (170)
--------------
Mandates in Transition - - - - - -
(30 June 2017)
Redemptions in
Transition (30 June
2016) (49) (590) - - - (639)
Transitions 47 18 - - - 65
--------------
Redemptions in
Transition (30 June
2017) (2) (572) - - - (574)
-------------
Mandated AUM/NUM 10,526 16,316 1,821 1,812 3,633 30,475
============= ============== ========== ============== ====== ==============
Increase/(decrease) in
Fee Earning Assets 13.4% 21.5% 55.5% 52.7% 54.1% 21.5%
------------- -------------- ---------- -------------- ------ --------------
Increase/(decrease) in
Mandated Assets 13.9% 21.0% 55.5% 52.7% 54.1% 21.5%
------------- -------------- ---------- -------------- ------ --------------
Fiduciary Management closing fee earning AUM includes GBP141m
relating to the River and Mercantile Dynamic Asset Allocation
Fund.
Notes to editors:
River and Mercantile Group PLC (R&M) is an investment
solutions business with a broad range of services, from consulting
and advisory, to fully delegated fiduciary management and asset
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 Liability
Driven Investing (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 GBP31bn under management, including GBP17bn of
derivatives, and advises on more than GBP27bn of assets.
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 (including
Gilts) 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. We report
an estimated AUM/NUM for those mandates where there is a high
likelihood of the amount being redeemed within the next three
months.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTBLGDRGGDBGRI
(END) Dow Jones Newswires
July 31, 2017 02:00 ET (06:00 GMT)
River And Mercantile (LSE:RIV)
Historical Stock Chart
From Apr 2024 to May 2024
River And Mercantile (LSE:RIV)
Historical Stock Chart
From May 2023 to May 2024