Trading Statement

29 April 2015

River and Mercantile Group PLC

Trading Update

River and Mercantile Group PLC (R&M), the advisory and investment management business today provides a trading update of Assets Under Management (AUM) and Notional Under Management (NUM) for the three and nine months ended 31 March 2015.

Highlights for the three months ended 31 March 2015:

· Mandated AUM/NUM has increased by 6% from 31 December 2014 to £20.1 billion, with fee earning AUM/NUM increasing by 7%.

· Net inflows in the period were £395 million and positive rebalancing flows in Derivative Solutions were £407 million. Redemptions in transition include the remaining AUM from the thematic global equity team.

· Investment performance increased AUM by £466 million, due to strong performance from both Total Investment Governance Solution (TIGS) in Fiduciary Management and Equity Solutions.

Highlights for the nine months ended 31 March 2015:

· Mandated AUM/NUM has increased by 11% from 30 June 2014 to £20.1 billion, with fee earning AUM/NUM increasing by 18%.

· Net inflows in the period were £1.1billion and positive rebalancing flows in Derivative Solutions were £0.9 billion.

· Investment performance increased AUM by £1.0 billion, due to strong performance from both Total Investment Governance Solution (TIGS) in Fiduciary Management and Equity Solutions.

· Net management fee margins are within management expectations.

Mike Faulkner, CEO of River and Mercantile, 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. 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. 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. These are both further evidence of the synergies arising from the merger. We continue to deliver strong and sustained investment returns for our clients and remain strongly positioned for growth.'

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

AUM/NUM for the three months ended 31 March 2015.

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

AUM/NUM for the nine months ended 31 March 2015.

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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 notional values of derivatives 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 represents 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.