Listed asset manager River & Mercantile (R&M) has released its results for the year ending 30 June and the firm has seen its fee earning assets under management increase by 8 percent to £47.6 billion on a year-on-year basis.
Its performance fees have increased by 448 percent to £6.4 million while it is also hiking its dividend by 23 percent to 11.69 pence per share.
Jonathan Dawson, chairman, said: “This has been another period of strong performance for the Group, with a significant improvement in profitability which enables us to pay an attractive dividend, including a special dividend driven by performance fees. The proposed sale of our Solutions business to Schroders will enable us to focus on the transformation of the remaining business into a specialist asset manager, where we see significant potential for further value creation for shareholders.”
Outgoing group chief executive James Barnham added: “The investments we have made in Wholesale and Institutional distribution, alongside the deepening and broadening of our investment capabilities have delivered earlier than anticipated. We have once again grown our AUM, by £3.4 billion during the period, the seventh year in a row we have done so, and this is a testimony to the quality of our offering, where 92% of funds and strategies by AUM have outperformed their relevant benchmarks over the last 12 months. Wholesale distribution improved strongly with net flow increase of £554 million compared to the previous year and we have had a successful CMA retendering process retaining 90% of relevant clients’ assets through the process and winning 12 new clients during the period, delivering an additional £4.9 billion of Fiduciary and Derivative AUM and assets and transition. This, combined with our strong investment performance, positions the Group very well for continued growth over the coming years.”
“The recent announcement of the sale of our Solutions Division to Schroders is an excellent outcome for all stakeholders and I am excited by the strength of this combination and the continuity and opportunity it provides for our clients and our people. Schroders will be an excellent owner of the business and for the long term future growth in an exciting and dynamic market.”
