LONDON (Alliance News) - River and Mercantile Group PLC Thursday reported a rise in fee-earning assets under management and notional assets under management, following a period of net inflows and positive investment performance.
In a statement, the advisory and investment management business said fee-earning assets under management and notional under management increased by 6% to GBP18.48 billion during the three months ended September 30.
The group reported GBP500 million of net inflows as GBP1.03 billion of sales more than offset GBP529 million of redemptions. Investment performance added a further GBP230 million to fee-earning assets under management and notional under management, while the total figure at the end of the period also included a "net rebalance" within derivative solutions of GBP396 million.
The group said net management fee margins and performance fees are within previously communicated ranges. It added a "strong pipeline" of new clients, a number of which are at the pre-mandate stage.
River and Mercantile said its Dynamic Asset Allocation Fund, launched in September and seeded with GBP5 million, has received "positive indications" from clients after it got marketing underway.
"The increase in fee earning AUM/NUM demonstrates a strong start to the new financial year, with the transition into fee earning AUM/NUM of all mandates previously reported in transition. We continue to focus on delivering strong and sustained investment returns for our clients, and on the growth of the business to generate value for our shareholders," Chief Executive Mike Faulkner said in a statement.
"Overall, the increase in AUM/NUM is an indication that the business has performed well and continues to be strongly positioned for growth," Faulkner added.
River And Mercantile shares were up 4.2% at 220.80 pence Thursday.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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