River and Mercantile has estimated performance fees will come in at nearly £7m for the last nine months as it moves from a more cautious position into a more aggressive strategy for investors.
The asset manager suffered a setback when it was fined for competition law breaches by the FCA in February, but results this morning show it has bounced back with 6 per cent growth in fee earning assets under management for the first quarter of 2019.
For the first three months of the year, investment performance generated £1.1bn.
The firm expects to earn £500,000 in fiduciary management performance fees for the period. Over the past nine months, it is anticipating this value to be £4.9m, with a further £2m from equity solutions performance fees.
River and Mercantile chief executive Mike Faulkner says: “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.
“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.”