27th Jul 2020 11:10
(Alliance News) - River & Mercantile Group PLC on Monday said it saw a "strong" rebound following the challenges presented by Covid-19.
The asset management company said its net flows for the fourth quarter of the financial year ending June 30 were GBP1.5 billion.
The company however said it is still seeing some weakness in its equities division. Equity sales during the fourth quarter totalled GBP83 million, swinging from GBP281 million in the third quarter ending March 31.
Assets under management and notional under management in the quarter were up 9.3% to GBP44.2 billion, up from GBP40.5 billion in the previous quarter.
Gross sales for the quarter were GBP3.1 billion compared to last quarter's GBP2.2 billion.
Chief Executive James Barham said: "We look forward to the new financial year with confidence. We have and will continue to make some significant investments in our business to boost our distribution capabilities and to enhance and deepen our investment resources to meet our clients' needs.
"We are beginning to see some very positive signs following the investment in distribution we have made over the past year and this places us in a strong position as we head into the new financial year."
For the 12-month period ending June 30, River & Mercantile's investment performance was positive at GBP700 million or up 1.8% of its of opening AUM/NUM.
Barham said he would like to see a greater diversification in the company's investments in the future, particularly in its manufacturing capabilities.
The company's distribution network will remain concentrated on its core markets of the UK, Europe, North America and Australia.
Barham said: "Our continuing investment in distribution, and where appropriate investment manufacturing, is a key part of our medium-term strategy.
"Supporting this with an efficient and aligned operating platform across the entirety of our business is critical and we plan to increase our investment in this part of our operations over the next few years to enhance operational efficiency over the medium term."
River & Mercantile shares were up 3.8% at 184.25 pence each on Monday morning in London.
By Greg Roxburgh; [email protected]
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