30th Jul 2018 12:46
LONDON (Alliance News) - Asset management company River & Mercantile Group PLC said Monday its fee-earning assets increased in the fourth quarter as well as the full year.
In the three months ended June, River & Mercantile increased its fee-earning assets under management by 2.7%. In the twelve months ended June, they increased by 9.0% to GBP33.8 billion from GBP31.0 billion the year before.
The company's net inflows in the fourth quarter totalled GBP600 million. They were GBP2.1 billion for the full year, down from GBP3.8 billion the previous year.
River & Mercantile's sales for the year totalled GBP5.7 billion, including GBP3.9 billion from Derivative Solutions and GBP1.3 billion from Equity Solutions. Up from GBP2.23 billion in financial year 2017.
Looking ahead, the company said it believes its progress in the twelve months and strong pipeline means it is well positioned to continue revenue growth.
According to the investment management company, its long-term investment performance remains above benchmark.
Chief Executive Officer Mike Faulkner said: "During the quarter we experienced solid growth during a period of financial market volatility. Derivative Solutions performed particularly well delivering strong flows in the period. Fiduciary Management and Equity Solutions experienced tougher conditions with respect to flows, but investment performance in these areas supported overall assets under management growth. This demonstrates again the benefit of how the diversified nature of our business lines produces stable growth.
"As a result of investment in people during the year we anticipate that our remuneration ratio on underlying revenue will be approximately 54% for the year, representing around 52% of ongoing underlying revenue and 2% for investment initiatives.
"We have continued to expand our distribution and client engagement capabilities, most recently in New York and Australia, to help drive growth in our business in addition to the existing pipeline. We continue to invest in our research and development activities, in particular in solutions that can deliver scalable investment capacity, for example global macro and emerging markets."
Shares in River & Mercantile were up 0.7% Monday at 285.00 pence each.
Related Shares:
RIV.L