TIDMRIV
RNS Number : 6471C
River and Mercantile Group PLC
19 April 2017
19 April 2017
River and Mercantile Group PLC
Trading Update
31 March 2017
River and Mercantile Group PLC (R&M), the investment
solutions business today provides a trading update for the three
and nine months ended 31 March 2017.
Highlights for the three months ended 31 March 2017:
-- Fee earning AUM/NUM increased by 6% to GBP30.6bn.
-- Net inflows were GBP1.3bn in the quarter, with net sales of
GBP0.5bn and positive rebalancing flows in Derivative Solutions of
GBP0.8bn.
-- Positive investment performance in all divisions added GBP0.5bn.
-- Performance fees in the three months ended 31 March 2017 are estimated to be GBP1.1m.
-- Mandates in transition in Equity Solutions - Institutional
include GBP0.2bn relating to the previously announced Willis Towers
Watson mandate with Alliance Trust.
Highlights for the nine months ended 31 March 2017:
-- Fee earning AUM/NUM increased by 20% to GBP30.6 bn.
-- Net inflows were GBP3.4bn in the nine months, with net sales
of GBP2.0bn and positive rebalancing flows in Derivative Solutions
of GBP1.4bn.
-- Positive investment performance in all divisions added GBP1.7bn.
-- Performance fees for the nine months ended 31 March 2017 are estimated to be GBP5.9m.
Mike Faulkner, CEO of River and Mercantile, said:
In the quarter, we grew assets and in-force revenue from both
positive net flows and investment performance. Our investment
performance track record continues to be strong across all
products. Our client orientated solutions and low attrition rates
have resulted in positive net flows in each of the last twelve
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. The River and Mercantile
Dynamic Asset Allocation Fund, launched in September 2014, now has
over GBP100m in AUM and we will be launching and seeding a Global
Macro strategy in 2017.
Assets Under Management (AUM) and Notional Under Management
(NUM)
AUM/NUM for the three months ended 31 March 2017.
Equity Solutions
----------------------------------
Fiduciary Derivative
GBP'm Management Solutions Wholesale Institutional Total Total AUM/NUM
--------------- ---------------- ---------- -------------- ------ --------------
(AUM) (NUM) (AUM) (AUM) (AUM)
Opening Fee Earning
AUM/NUM 10,121 15,693 1,483 1,451 2,934 28,748
Sales 334 207 208 108 316 857
Redemptions (133) (113) (73) (38) (111) (357)
--------------
201 94 135 70 205 500
Net Rebalance - 834 - - - 834
Net Flow 201 928 135 70 205 1,334
Investment
Performance 353 - 117 48 165 518
Fee Earning AUM/NUM 10,675 16,621 1,735 1,569 3,304 30,600
Mandates in
Transition - 50 - 210 210 260
Redemptions in
Transition (115) - - - - (115)
Mandated AUM/NUM 10,560 16,671 1,735 1,779 3,514 30,745
=============== ================ ========== ============== ====== ==============
Increase/(Decrease)
in Fee Earning
Assets 5.5% 5.9% 17.0% 8.1% 12.6% 6.4%
--------------- ---------------- ---------- -------------- ------ --------------
Increase/(Decrease)
in Mandated Assets 4.1% 6.2% 17.0% 22.6% 19.8% 6.8%
--------------- ---------------- ---------- -------------- ------ --------------
Fiduciary Management closing fee earning AUM includes GBP101m
relating to the River and Mercantile Dynamic Asset Allocation
Fund.
Equity Solutions - Institutional mandates in transition
represent the recently announced Willis Towers Watson mandate with
Alliance Trust.
AUM/NUM for the nine months ended 31 March 2017.
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 772 2,268 485 242 727 3,767
Redemptions (365) (931) (270) (215) (485) (1,781)
--------------
407 1,337 215 27 242 1,986
Net Rebalance - 1,381 - - - 1,381
Net Flow 407 2,718 215 27 242 3,367
Investment
Performance 981 - 349 355 704 1,685
Fee Earning AUM/NUM 10,675 16,621 1,735 1,569 3,304 30,600
Opening Mandates in
Transition - 170 - - - 170
Closing Mandates in
Transition - 50 - 210 210 260
Opening Redemptions
in Transition (49) (590) - - - (639)
Closing Redemptions
in Transition (115) - - - - (115)
Mandated AUM/NUM 10,560 16,671 1,735 1,779 3,514 30,745
=============== ================ ========== ============== ====== ==============
Increase/(Decrease)
in Fee Earning
Assets 14.9% 19.5% 48.2% 32.2% 40.1% 19.8%
--------------- ---------------- ---------- -------------- ------ --------------
Increase/(Decrease)
in Mandated Assets 14.3% 23.6% 48.2% 49.9% 49.0% 22.6%
--------------- ---------------- ---------- -------------- ------ --------------
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 GBP30bn under management, including GBP17bn of
derivatives, and advises on more than GBP25bn 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. 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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