River & Mercantile Group’s fee earning assets under management were up by 5 per cent over the fourth quarter and 7 per cent during the second half, to £22.5bn at year end.
The advisory and investment management business revealed net inflows of £909m included a £1bn structured equity options mandate from a large UK defined benefit pension scheme and a first global equity mandate in Australia.
Over the second six months of 2015, there were net inflows of £1.5bn, with net sales of £1.16bn and positive rebalancing flows in the derivative solutions business of £332m.
Investment performance in the second quarter offset first quarter negative performance, demonstrating the firm’s ability to defend and protect client assets in volatile markets, read the statement.
Chief executive Mike Faulkner said despite difficult market conditions during the quarter, River & Mercantile generated positive net flows and positive investment performance.
“As we anticipated in our last annual report, we have experienced strongest growth in our equity and derivatives solutions divisions.
“We continue to deliver sustained investment returns and effective outcome led solutions to our clients, and remain strongly positioned for growth.”
Near the end of the recorded period, the results also reflect the fact the Palisades advisory business was sold.
Palisades’ advisory revenue was £500,000 in the first half of 2015 to 2016, while the net economics of the business in the current period is a loss of £100,000 - down from a full year profit of £200,000.
For the six months ended 31 December 2015, advisory fees were estimated at £4.3m - down from £6m during 2014 to 2015 - and performance fees were an estimated £1.1m - also down from £3.1m the previous year.
peter.walker@ft.com
