Andrada Mining acquisition elevates the miner to emerging mid-tier status. Watch the video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRIV.L Share News (RIV)

  • There is currently no data for RIV

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

River And Mercantile Chief Outlines Vision For Investment Industry

Thu, 04th Sep 2014 09:39

LONDON (Alliance News) - River and Mercantile Group PLC Chief Executive Mike Faulkner was keen to focus on the future Thursday as the advisory and investment management business reported earnings for the first time since its initial public offering earlier this year.

River and Mercantile reported an GBP11,000 pretax profit in the six months ended June 30 on GBP20.2 million of revenue. The disparity between the two was largely due to the GBP4.1 million of expenses incurred due to the group's IPO, as well as GBP3.6 million of administrative expenses. In addition, remuneration and benefits cost GBP10.8 million.

River and Mercantile listed on the London Stock Exchange's Main Market in June following the merger of P-Solve Ltd and River and Mercantile Asset Management LLP earlier in the year. Faulkner said River and Mercantile, which is made up of four business lines - advisory, fiduciary management, derivatives, and equities - has good reason to be excited about its potential, highlighting three key trends the group is looking to tap into.

The first of those trends, seen as a move towards outcome-oriented management is the first key trend, is rooted in the idea that the investment industry has not always delivered products that clients or customers actually need.

"Clients have now realised that their outcomes may not be met by these products. They are now spending more time understanding and defining the financial outcomes they require, and then requiring investment houses to deliver on them," Faulkner said.

The CEO said the first trend has resulted in strong growth in fiduciary management and the use of derivatives for hedging purposes. He also said the industry has often found it "difficult to explain" to clients whether or not its work for them is going well.

"Many successful investment strategies work very well over a full market cycle, but clients are not able to ignore the quality of the journey on the way to long-term success. They are therefore evaluating more frequently and in more detail whether the investment strategies they are using are effective, or if there is cause for concern. They are also considering more carefully what role they want in the investment decision-making process," the CEO said.

He said the intensifying of standards by which investment buyers are governing their assets is the second key trend, which leads to the broadening of the asset management service.

"Whilst at the core of the service the need to receive and invest money remains, clients are increasingly requiring other services too. The precise nature of these services depends on the client, but they often include a variety of advisory services, analytical support, risk evaluation services, or investment views that do not relate specifically to the mandate in question," Faulkner said, as he identified the third key trend as the move by clients to require the provision of other services alongside the pure asset management service.

According to Faulkner, the trends by no means currently dominate the industry. However, he said they are likely to continue because they are " logical" and in clients' interests.

"The ability to adapt to these trends successfully will prove to be a competitive requirement," Faulkner said.

The CEO said that a successful investment house will need five skills in order to succeed:

Alpha Sources

Investment decision-making and execution skills to add value

Defining client outcomes

Working with a client to define their financial objectives in sufficient detail to understand how to engineer a portfolio effectively

Portfolio engineering

Engineering together a variety of investment decision-making skills to meet the financial objectives

Governance knowledge

Engaging with the client in the context of their own governance arrangements, to deliver the investment proposition

Additional services

Providing additional services where required alongside the mandate

"Our business model brings together the advisory skills required for three of the above skill areas, with the investment management and engineering skills required for the other two.  Our primary objective is to use them to deliver strong outcomes for clients," the CEO said.

River and Mercantile shares were Thursday quoted flat at 208.00 pence.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

Copyright 2014 Alliance News Limited. All Rights Reserved.

More News
20 Jun 2023 17:10

IN BRIEF: AssetCo says CEO to leave after "extremely demanding" period

AssetCo PLC - London-based asset management fund - Says Chief Executive Officer Campbell Fleming has decided to step down for personal reasons, effective June 30. Campbell oversaw AssetCo's formation, as well as multiple acquisitions. AssetCo will not replace Campbell directly; instead, Executive Chair Martin Gilbert and Chief Financial & Operating Officer Gary Marshall will assume its overall strategic direction and day-to-day operations, respectively. Alex Hoctor-Duncan, CEO of AssetCo's principal operating company and 2022 acquisition River & Mercantile Group PLC, also will continue taking on additional responsibilities.

Read more
15 Jun 2022 11:21

AssetCo swings to half-year loss; in "sound shape" as R&M deal closes

(Alliance News) - AssetCo PLC on Wednesday said it swung to a half-year loss in a busy period for the firm as it bought River & Mercantile Group PLC.

Read more
14 Jun 2022 20:27

IN BRIEF: River & Mercantile shares suspended as takeover complete

River & Mercantile Group PLC - London-based advisory and asset management company - Shares suspended from trading on Tuesday at request of company with takeover by AssetCo PLC complete. Shares to be cancelled from trading on London Main Market on Wednesday.

Read more
25 May 2022 22:02

TRADING UPDATES: Tekcapital fundraise; Kromek wins US government order

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Wednesday and not separately reported by Alliance News:

Read more
19 May 2022 18:06

IN BRIEF: AssetCo's takeover of River & Mercantile gains FCA approval

River & Mercantile Group PLC - London-based advisory and asset management company - Receives change in control approval from the UK Financial Conduct Authority for takeover by AssetCo PLC.

Read more
19 May 2022 16:51

LONDON MARKET CLOSE: Dour day in Europe as New York struggles again

(Alliance News) - European equities slumped on Thursday, after deep sell-offs in New York on Wednesday as retailers across the Atlantic faced heavy selling pressure following a series of warnings on costs, margins and profits.

Read more
19 May 2022 10:54

SMALL-CAP WINNERS & LOSERS: R&M-AssetCo deal gets FCA green light

(Alliance News) - The following stocks are the leading risers and fallers among London Main Market small-caps on Thursday.

Read more
8 Apr 2022 21:08

DIRECTOR DEALINGS: Taseko Mines director buys shares worth USD293,000

(Alliance News) - The following is a round-up of share dealings by London-listed company directors and managers announced on Thursday and not separately reported by Alliance News:

Read more
25 Mar 2022 16:51

UK shareholder meetings calendar - next 7 days

Monday 28 March 
Congyar Investment Co PLCGM re share premium account cancellation
Go-Ahead Group PLCGM re accounts, remuneration, auditor
Jupiter Emerging & Frontier Income Trust PLCAGM
Tuesday 29 March 
Impax Asset Management Group PLCAGM
Tekmar Group PLCAGM
Wednesday 30 March 
Brunner Investment Trust PLCAGM
Mediazest PLCAGM
Micro Focus International PLCAGM
Parsley Box Group PLCGM re equity raise
Thursday 31 March 
Pressure Technologies PLCAGM
Red Rock Resources PLCAGM
Aukett Swanke Group PLCAGM
Various Eateries PLCAGM
Toople PLCAGM
BiVictriX Therapeutics PLCAGM
CloudCoCo Group PLCAGM
Friday 1 April 
Gfinity PLCGM re fundraising
River & Mercantile Group PLCAGM
  
Copyright 2022 Alliance News Limited. All Rights Reserved.

Read more
25 Mar 2022 13:28

IN BRIEF: River & Mercantile widens half-year loss, ups revenue

River & Mercantile Group PLC - London-based advisory and asset management company - More than doubles its loss in the first half of its 2022 financial year. It posts a loss of GBP13.4 million for the half-year ending on December 31, widening from GBP6.0 million a year ago. Revenue grows 4.2% to GBP13.5 million from GBP12.9 million. As previously reported, subject to shareholders' approval and change of control permission being granted by the Financial Conduct Authority, River & Mercantile will soon be part of AssetCo PLC, Chair Jonathan Dawson says.

Read more
15 Feb 2022 22:16

TRADING UPDATES: Burford, Frenkel Topping expect contrasting results

(Alliance News) - The following is a round-up of updates by London-listed companies, issued on Tuesday and not separately reported by Alliance News:

Read more
1 Feb 2022 11:47

River & Mercantile completes sale of solutions arm to Schroders

River & Mercantile completes sale of solutions arm to Schroders

Read more
1 Feb 2022 08:31

LONDON BRIEFING: Shares in retailer Joules plunge on business woes

LONDON BRIEFING: Shares in retailer Joules plunge on business woes

Read more
25 Jan 2022 19:12

TRADING UPDATES: Cordiant raises GBP200 million; Home REIT spends

TRADING UPDATES: Cordiant raises GBP200 million; Home REIT spends

Read more
25 Jan 2022 14:43

River & Mercantile agrees to GBP99 million AssetCo takeover

River & Mercantile agrees to GBP99 million AssetCo takeover

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.