River & Mercantile says it saw only “minimal” net outflows in the days following the EU referendum.
In a trading statement, published today, R&M told investors the business has been “relatively unaffected” by the political and economical uncertainties arising from the aftermath of the Brexit vote.
The group only expects Brexit-related negative flows in its wholesale equity solutions business, representing less than 1 per cent of the £1.3bn wholesale assets under management at the end of May.
In the two months to the end of May, R&M’s assets under management increased by £700m as a result of positive net flows and investment performance, the group said.
The strongest contribution to the flows came from the derivatives business given the high levels of market uncertainty, the firm says. Investment performance added £300m “in a very challenging market environment”.
River & Mercantile chief executive Mike Faulkner says: “In light of the extreme market conditions we felt it was appropriate to update the market and our shareholders on current trading.
“We therefore include a trading update to the end of May and further background on how the business performed during June, including the actions we took on behalf of investors in the run-up to the referendum and thereafter.”
Despite the Brexit vote, Faulkner says R&M’s business model and approach will remain “unchanged” going forward.
He says: “In addition, we continue to have a strong pipeline of new business opportunities and relatively low levels of attrition. We do not have any passported European business that would be affected by a change in rules.”