RIV.L Regulatory News (RIV)

6 November 2015

River and Mercantile Group PLC

Trading Update

River and Mercantile Group PLC (R&M), the advisory and investment management business today provides a trading update of Assets Under Management (AUM) and Notional Under Management (NUM) for the three months ended 30 September 2015.

Highlights for the three months ended 30 September 2015:

· Fee earning AUM/NUM increased from 30 June 2015 by 2% to £21.5 billion.

· Net inflows were £592 million in the period, with net sales of £152 million and positive rebalancing flows in Derivative Solutions of £440 million.

· In difficult market conditions investment performance reduced AUM by less than 1% (£133 million). Notably, fiduciary management assets fell only 0.3% in the period, demonstrating our ability to defend and protect client assets in volatile markets.

Subsequent to the quarter end R&M has been appointed to a £1bn structured equity options mandate by a large UK defined benefit pension scheme. The mandate was designed and executed throughout October.

Mike Faulkner, CEO of River and Mercantile, said:

'The difficult market conditions have shown the robustness of the business, both in terms of diversification across asset classes and to continue generating positive flows. This follows from our focus on delivering effective, outcome-led solutions to our clients. Our appointment for a large structured equity mandate continues the trend for investors to seek innovative ways to preserve value, while still remaining exposed to risk markets. Furthermore, our new Global High Alpha equity proposition has been reviewed by a range of investors and we expect to see flows in the coming months. We continue to deliver sustained investment returns for our clients and remain strongly positioned for growth.'

Assets Under Management (AUM) and Notional Under Management (NUM)

AUM/NUM for the three months ended 30 September 2015.

Redemptions in transition at 30 September 2015 include a client who is redeeming their Derivative LDI mandate.

Notes to editors:

River and Mercantile Group PLC 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. 

The Group 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 £21 billion under management, including £12 billion of derivatives and advises on assets in excess of £30 billion.

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 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.