Assetco Regulatory News (ASTO)

6 October 2023

LEI: 213800LFMHKVNTZ7GV45

For Immediate Release

AssetCo plc

("AssetCo" or the "Company")

Sale of Interest in River & Mercantile Infrastructure LLP ("RMI")

Sale of Interest in RMI

AssetCo and its wholly owned subsidiary, River & Mercantile Holdings Limited ("Holdings") are pleased to announce that they have reached agreement in principle for the transfer of their interest as corporate partner in RMI, to partners of RMI led by Ian Berry, managing partner of RMI (the "Sale").

Partners of RMI have agreed terms with AssetCo and Holdings to continue managing and operating RMI outside the AssetCo Group. It is anticipated that the transaction(s) to effect this change will be completed, subject to agreeing final contractual documentation, in Q4 2023.

About RMI

RMI's primary activity is as investment adviser to the River and Mercantile Infrastructure Income Fund ("the Fund") which was launched and made its first investments in 2022. After careful consideration, each of AssetCo, Holdings, and partners of RMI have concluded that the prospects for the Fund and the business would be optimised by RMI operating outside AssetCo.

Management fee revenues for the year ending 30 September 2023 earned by RMI on behalf of the Group are estimated at £0.53m with a loss for the year estimated at £0.75m before non-recurring items. AssetCo made a provision of £1.7m in its Interim Results published in June 2023 against assets held on the balance sheet relating to RMI, which compares to gross balance sheet assets which currently stand at an estimated £2.5m (£0.5m net). Consideration for the transaction is the nominal figure of £1 but release from certain previous obligations will result in a write back of £0.7m.

Martin Gilbert, Executive Chair of AssetCo said:

"We are pleased to have reached agreement with Ian and his team for them to take the business of RMI out of the AssetCo Group. This will allow that team to re-shape the RMI business to focus on delivering the best outcome for the Fund's clients while leaving AssetCo to focus on building its active equities business. In doing so, we are looking to capitalise on the recent acquisition of Ocean Dial Asset Management and bringing this together with our other active equities businesses under the River & Mercantile banner. In that context, the operations of our three legacy Scottish businesses have now been fully amalgamated into a single unit pending further integration with River & Mercantile in London before calendar year end.

This move, following quite swiftly on the heels of our disposal of Rize ETF Limited, delivers a much-simplified Group which is better able to withstand the significant headwinds that persist in global markets for asset management services. Our narrower focus, together with the financial support of our valuable stake in the business of Parmenion, gives us renewed confidence for the future."

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For further details, visit the website, www.assetco.com

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