Trading Update

30 January 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 six months ended 31 December 2014.

Highlights for the six months ended 31 December 2014:

· Mandated AUM/NUM has increased by 5% from 30 June 2014 to £18.9 billion, with fee earning AUM/NUM increasing by 10% to £19.1 billion.

· Net AUM inflows in the period were £729 million and positive rebalancing flows in Derivative Solutions were £485 million.

· Investment performance increased AUM by £572 million, due to strong performance from Total Investment Governance Solution (TIGS) in Fiduciary Management.

· Mandates in transition at 31 December 2014 were £33 million which relate to new investors in the Dynamic Asset Allocation Fund. Redemptions in transition were £256 million of which £205 million relate to the Equity Solutions - Global Equity team.

· Net management fee margins are within management expectations.

Mike Faulkner, CEO of River and Mercantile, said:

'The overall growth in our fee earning assets demonstrates a strong first half of the year, particularly in more volatile investment conditions and is evidence of the synergies from the merger. We have continued to deliver strong and sustained investment returns for our clients and remain strongly positioned for growth.

In the last six months markets have seen greater levels of volatility, against a backdrop of higher levels of political and economic uncertainty. Dynamic asset allocation decision making with TIGS, together with the use of derivatives - primarily interest rate, inflation and equity hedging - has delivered strong risk managed returns for clients in our Fiduciary Management division. This environment, where significant falls in bond yields have highlighted the importance of hedging liability related risks, is also strongly supportive of our Derivatives business.

We have started to raise assets in the River & Mercantile Dynamic Asset Allocation Fund (DAA) which was launched and seeded in September 2014. This fund uses the asset allocation investment process that supports our Fiduciary Management service, together with the equity selection skills from our Equity Solutions division. DAA mandates continue to be attractive to investors, and this initial demand is consistent with one of our stated strategic aims set out in our Annual Report.'

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

AUM/NUM for the six months ended 31 December 2014.

Performance Fees

Performance fees for Fiduciary Management for the six months ended 31 December 2014 are expected to be £3.0 million.

For the six months ended 31 December 2014 no performance fees are expected to be earned in Equity Solutions. The performance fee eligible AUM in Equity Solutions at 31 December 2014 was £300 million compared to £521 million at 30 June 2014. The decrease is the result of redemptions in the Equity Solutions - Global Equity team and an institutional investor changing to a fixed fee arrangement.

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

AUM/NUM for the three months ended 31 December 2014.

Interim Results Announcement

River and Mercantile Group PLC will be announcing its interim results for the six months ended 31 December 2014 on 27 February 2015.

For further information please contact:

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

Kevin Hayes, Chief Financial Officer

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 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, but where the AUM/NUM is included in fee earning assets at period end. The redemptions will be included in a future period.

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