River and Mercantile's assets under management grew by 6 per cent to £36.3bn in the first three months of 2019.
The investment management business saw net flows of just over £1bn plus positive investment performance of about £1bn in the period to March 31.
Fiduciary management was its most successful division, with fee earning assets under management rising 11.4 per cent in the first quarter. Equity solutions was also boosted during the period, as assets grew by 9 per cent to £5bn.
In total, the group’s investment performance generated £1.1bn and was positive across all divisions.
Performance fees earned in the three months were estimated to be £6.9m, of which £4.9m came from fiduciary management.
Mike Faulkner, chief executive of River and Mercantile, said: "Having positioned our clients cautiously in previous periods, I stated in the last trading statement that our macroeconomic signals indicated that risk assets were likely to provide positive returns.
"We therefore adapted our client portfolios accordingly and were able to capture the market returns for them. This ability to respond quickly to asset allocation opportunities is one of our key differentiating capabilities.
"This is a strong period of growth for the group following the more challenging conditions in the [previous] quarter. It has been very encouraging to see the contribution to growth from both investment performance and net rebalancing.
“We continue to have a positive outlook for equity markets from here and the results this period position us well for the final quarter of our financial year."
Mr Faulkner highlighted the £350m inflows into River & Mercantile's Dynamic Asset Allocation fund, which now has more than £500m in assets under management.
The fund has returned 22 per cent over the past three years while its sector, the IA Flexible Investment, has returned 28 per cent.
imogen.tew@ft.com
