29th Apr 2015 10:03
LONDON (Alliance News) - River and Mercantile Group PLC Wednesday said that a range of consultants and investors are showing interest in the services it offers, as it reported growth in the assets it manages in the third quarter.
In a statement, the advisory and investment management business said its mandated assets under management and notional under management increased by 6% to GBP20.1 billion in the three months ended March 31. Notional under management is a measure of derivative contracts that is used to calculated the management fees paid to the group.
Net inflows amounted to GBP395 million, River and Mercantile said. It said that "positive rebalancing flows" in its Derivative Solutions division, which is comprised of liability-driven investment and structured equity, were GBP407 million.
Investment performance increased assets under management by GBP466 million, the company said.
"The continued growth in our fee-earning assets demonstrates our focus on delivering effective, outcome-led solutions to our clients, particularly in more volatile investment conditions," Chief Executive Mike Faulkner said in a statement.
"During the quarter we have made significant progress with leading investment consultants, with regard to both Derivative Solutions and equity mandates. We are experiencing good interest from consultants and larger pension funds for structured equity solutions in particular," Faulkner said.
"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," Faulkner said.
"We continue to deliver strong and sustained investment returns for our clients and remain strongly positioned for growth," Faulkner added.
River and Mercantile shares were up 5.6% at 210 pence on Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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