RIV.L Regulatory News (RIV)

23 October, 2014

River and Mercantile Group PLC

Trading Statement

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 2014.

Highlights:

· Fee earning AUM/NUM has increased by 6% from 30 June 2014 to £18.5 billion.

· Net mandates in transition reported at 30 June 2014 have now all transitioned into fee earning AUM/NUM during the quarter and we have a strong pipeline of new clients, a number of which are at the pre-mandate stage.

· Net AUM flows in the quarter were £500 million and rebalancing flows in Derivative Solutions were £396 million.

· Investment performance increased AUM in the quarter by £230 million, primarily from Fiduciary Management.

· Net management fee margins and performance fees are within the previously communicated ranges.

· River and Mercantile Dynamic Asset Allocation Fund launched in September and seeded with £5 million. The marketing of the fund has commenced, with positive indications from clients.

Mike Faulkner, CEO of River and Mercantile, said:

"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. Overall, the increase in AUM/NUM is an indication that the business has performed well and continues to be strongly positioned for growth."

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

This Trading Update reports the AUM/NUM for the three months ended 30 September 2014.

For further information please contact:

River & Mercantile Group PLC

+44 (0)20 3327 5100

Kevin Hayes, Chief Financial Officer

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) represent the assets over which we act as a discretionary investment manager, either 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' represents the AUM/NUM of mandates which have been awarded by clients 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 3 months.

'Redemptions in transition' are redemptions which have been notified by the client, but the AUM/NUM is included in fee-earning assets at period end. The redemption will be included in a future period.