R&M performance fee drop hits profits

Fee-earning AUM up 22%

River & Mercantile Group has reported lower profits in its full results for the year ending 30 June, despite an increase in fee-earning AUM of 22% and a "strong" final month when the UK was dealing with the fallout from the EU referendum.

However, profits were lower as a result of investment into the business and remuneration, the group said. Fee-earning AUM increased by 22%, to £25.5bn, while mandated AUM increased by 17% year on year, to £25.1bn. The group also said net flows for the year were £3.7bn, with no comparison figure for the year before. Profits Adjusted profit after tax was £9.5m, compared to £12.7m in the prior year, while adjusted underlying profit before tax was £11.1m, compared to £12.4m the year before. Profits were also affected by reduced fees - although net management fees increased by 6% year...