StockMarketWire.com - Investment solutions business River and Mercantile said it achieved a positive investment performance across all divisions in the quarter to 30 June 2018.

HIGHLIGHTS:

- Fee earning AUM/NUM increased by 2.7% to £33.8bn

- Net inflows for the quarter were £0.6bn, equivalent to 1.8% of opening AUM/NUM

- Sales for the period were £1.1bn, including £0.4bn of new structured equity derivatives

- Redemptions in the period were £0.5bn, including £0.1bn of maturing structured equity derivatives

- Investment performance added £0.3bn and was positive across all divisions

HIGHLIGHTS FOR THE YEAR TO 30 JUNE:

- Fee earning AUM/NUM increased by 9% in the year to £33.8bn

- Net inflows for the 12 months were £2.1bn, equivalent to 6.8% of opening AUM/NUM

- Sales for the period were £5.7bn, including £3.9bn from Derivative Solutions and £1.3bn from Equity Solutions

- Redemptions in the period were £4.6bn, including £1.5bn of maturing structured equity derivatives from a single client which had met its investment objectives

- Investment performance generated £0.7bn and was positive across all divisions

CEO Mike Faulkner said: "During the quarter we experienced solid growth during a period of financial market volatility.

"Derivative Solutions performed particularly well delivering strong flows in the period.

"Fiduciary Management and Equity Solutions experienced tougher conditions with respect to flows, but investment performance in these areas supported overall AUM growth.

"This demonstrates again the benefit of how the diversified nature of our business lines produces stable growth.

"Our progress during the twelve months and our strong pipeline means that we end our financial year well positioned to continue our revenue growth in line with our strategic objectives.

"The long term investment performance of our funds and mandates remains above benchmark.

"As a result of investment in people during the year we anticipate that our remuneration ratio on underlying revenue will be approximately 54% for the year, representing around 52% of ongoing underlying revenue and 2% for investment initiatives.

"We have continued to expand our distribution and client engagement capabilities, most recently in New York and Australia, to help drive growth in our business in addition to the existing pipeline.

"We continue to invest in our research and development activities, in particular in solutions that can deliver scalable investment capacity, for example global macro and emerging markets."




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