TIDMRIV
RNS Number : 3680V
River and Mercantile Group PLC
30 January 2017
30 January 2017
River and Mercantile Group PLC
Trading Update
River and Mercantile Group PLC (R&M), the advisory and
investment solutions business today provides a trading update
comprising Assets under Management (AUM), Notional under Management
(NUM) and performance fees for the three and six months ended 31
December 2016.
Highlights for the three months ended 31 December 2016:
-- Fee earning AUM/NUM increased by 3% to GBP28.7bn.
-- Net inflows were GBP0.7bn in the quarter, with net sales of
GBP0.6bn and positive rebalancing flows in Derivative Solutions of
GBP0.1bn.
-- Investment performance added GBP0.2bn.
-- Performance fees in the quarter ended 31 December 2016 are estimated to be GBP2.4m.
Highlights for the six months ended 31 December 2016:
-- Fee earning AUM/NUM increased by 13%.
-- Net inflows were GBP2.0bn in the six months, with net sales
of GBP1.5bn and positive rebalancing flows in Derivative Solutions
of GBP0.5bn.
-- Positive investment performance in all divisions added GBP1.2bn.
-- Performance fees for the six months are estimated to be GBP4.7m.
Mike Faulkner, CEO of River and Mercantile, said:
In the quarter, we continued to grow 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
eleven quarters since the IPO. We remain well positioned to
continue this growth.
Assets Under Management (AUM) and Notional Under Management
(NUM)
AUM/NUM for the three months ended 31 December 2016.
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 10,166 15,078 1,321 1,326 2,647 27,891
Sales 133 1,293 187 17 204 1,630
Redemptions (144) (781) (88) (19) (107) (1,032)
--------------
(11) 511 99 (2) 97 598
Net Rebalance - 103 - - - 103
Net Flow (11) 614 99 (2) 97 701
Investment
Performance (34) - 63 127 190 156
Fee Earning AUM/NUM 10,121 15,693 1,483 1,451 2,934 28,748
Mandates in
Transition (31
December 2016) 27 - - - - 27
Redemptions in - - - - - -
Transition (31
December 2016)
Mandated AUM/NUM 10,148 15,693 1,483 1,451 2,934 28,775
=============== ================ ========== ============== ====== ==============
Increase/(Decrease)
in Fee Earning
Assets (0.4%) 4.1% 12.3% 9.4% 10.8% 3.1%
--------------- ---------------- ---------- -------------- ------ --------------
Increase/(Decrease)
in Mandated Assets 0.3% 7.0% 12.3% 9.4% 10.8% 4.9%
--------------- ---------------- ---------- -------------- ------ --------------
Fiduciary Management closing fee earning AUM includes GBP89m
relating to the River and Mercantile Dynamic Asset Allocation
Fund.
AUM/NUM for the six months ended 31 December 2016.
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 440 2,059 278 134 412 2,911
Redemptions (232) (817) (197) (177) (374) (1,423)
--------------
208 1,242 81 (43) 38 1,488
Net Rebalance - 548 - - - 548
Net Flow 208 1,790 81 (43) 38 2,036
Investment Performance 626 - 231 307 538 1,164
Fee Earning AUM/NUM 10,121 15,693 1,483 1,451 2,934 28,748
Mandates in Transition
(30 June 2016) - 170 - - - 170
Transitions/Adjustments 27 (170) - - - (143)
--------------
Mandates in Transition
(31 December 2016) 27 - - - - 27
Redemptions in
Transition (30 June
2016) (49) (590) - - - (639)
Transitions 49 590 - - - 639
--------------
Redemptions in - - - - - -
Transition (31 December
2016)
-------------
Mandated AUM/NUM 10,148 15,693 1,483 1,451 2,934 28,775
============= ============== ========== ============== ====== ==============
Increase/(Decrease) in
Fee Earning Assets 9.0% 12.9% 26.6% 22.2% 24.4% 12.5%
------------- -------------- ---------- -------------- ------ --------------
Increase/(Decrease) in
Mandated Assets 9.9% 16.4% 26.6% 22.2% 24.4% 14.7%
------------- -------------- ---------- -------------- ------ --------------
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 GBP29bn under management, including GBP16bn 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 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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