Trading Statement

19 April 2017

River and Mercantile Group PLC

Trading Update

31 March 2017

River and Mercantile Group PLC (R&M), the investment solutions business today provides a trading update for the three and nine months ended 31 March 2017.

Highlights for the three months ended 31 March 2017:

· Fee earning AUM/NUM increased by 6% to £30.6bn.

· Net inflows were £1.3bn in the quarter, with net sales of £0.5bn and positive rebalancing flows in Derivative Solutions of £0.8bn.

· Positive investment performance in all divisions added £0.5bn.

· Performance fees in the three months ended 31 March 2017 are estimated to be £1.1m.

· Mandates in transition in Equity Solutions - Institutional include £0.2bn relating to the previously announced Willis Towers Watson mandate with Alliance Trust.

Highlights for the nine months ended 31 March 2017:

· Fee earning AUM/NUM increased by 20% to £30.6 bn.

· Net inflows were £3.4bn in the nine months, with net sales of £2.0bn and positive rebalancing flows in Derivative Solutions of £1.4bn.

· Positive investment performance in all divisions added £1.7bn.

· Performance fees for the nine months ended 31 March 2017 are estimated to be £5.9m.

Mike Faulkner, CEO of River and Mercantile, said:

In the quarter, we grew assets and in-force revenue from both positive net flows and investment performance. Our investment performance track record continues to be strong across all products. Our client orientated solutions and low attrition rates have resulted in positive net flows in each of the last twelve quarters since the IPO in 2014.

We remain well positioned to continue this growth and will continue to invest in our operating platform, international capabilities and new product launches. The River and Mercantile Dynamic Asset Allocation Fund, launched in September 2014, now has over £100m in AUM and we will be launching and seeding a Global Macro strategy in 2017.

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

AUM/NUM for the three months ended 31 March 2017.

Fiduciary Management closing fee earning AUM includes £101m relating to the River and Mercantile Dynamic Asset Allocation Fund.

Equity Solutions - Institutional mandates in transition represent the recently announced Willis Towers Watson mandate with Alliance Trust.

AUM/NUM for the nine months ended 31 March 2017.

Notes to editors:

River and Mercantile Group PLC (R&M) is an investment solutions business with a broad range of services, from consulting and advisory, to fully delegated fiduciary management and asset management.

R&M is focussed on creating investment solutions for institutional pension schemes, insurance and financial intermediaries and operates through four divisions: Investment Solutions encompassing both advisory and fiduciary management, Derivative Solutions providing structured equity and Liability Driven Investing (LDI), Equity Solutions providing UK and global equity strategies and Multi Asset Solutions, providing dynamic asset allocation and other multi asset based solutions.

The Group has £30bn under management, including £17bn of derivatives, and advises on more than £25bn of assets.

For further information please contact:

River & Mercantile Group PLC +44 (0)20 3327 5100

Kevin Hayes, Chief Financial Officer

Chris Rutt, Deputy Chief Financial Officer and Investor Relations

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) represents the assets over which we act either as a discretionary investment manager 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 billing notional values of Derivatives (including Gilts) 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 represent the AUM/NUM of mandates which have been awarded by clients at the period-end date 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 three months.

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