15th Jun 2015 07:33
LONDON (Alliance News) - River and Mercantile Group PLC Monday said it will manage a GBP700 million options mandate for the Royal Mail Pension Plan.
In a statement, the advisory and asset management business said it was appointed in April, with the structure of the mandate designed and executed in May.
"This is a very significant appointment for R&M and highlights the tangible benefits of using structured equity to manage equity risks," James Barham, River and Mercantile's global head of distribution, said in a statement.
Barham said that demand for structured equity from clients such as pension funds and other institutions continues to be significant.
"The design and execution of the Royal Mail mandate demonstrates the group's ability to design innovative, outcome oriented solutions for our clients, which are delivered to meet their governance requirements," Barham said.
The Royal Mail Pension Plan is responsible for pension benefits earned by members on and after April 1, 2012. It is closed to new members as Royal Mail Group introduced a defined contribution plan from April 2008.
"We are constantly seeking new ways to drive and manage returns on behalf of our members in the most efficient and risk-focused manner possible," Ian McKnight, Royal Mail Pension Plan's chief investment officer, said in a statement.
River and Mercantile shares were up 3.2% at 216.65 pence Monday morning.
By Samuel Agini; [email protected]; @samuelagini
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