River and Mercantile ‘focused on conduct’ following City watchdog investigation
River and Mercantile has said it will focus on conduct as it moves to reassure investors in the wake of an investigation by the City watchdog.
The Financial Conduct Authority fined the asset management firm £109,000 last month after it was found to have broken competition law, and former portfolio manager Philip Rodrigs was sacked last year following a probe into his professional conduct.
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Chairman Jonathan Dawson said: “While we are glad to put this matter behind us, the board continues to be focussed on conduct and ensuring that the group upholds the highest standards at all times.”
The company also revealed it plans to launch an Emerging Markets Absolute Return fund and a Global Macro fund in its results for the six months to the end of December 2018.
Profit after tax was £8.4m, down from £9.6m the previous year, and earnings per share were 8.4p compared to 11.3p in 2017.
The firm blamed a slip in profits on the cost of external research following the introduction of Mifid II regulations.
Meanwhile, assets under management grew one per cent to £34.2bn.
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Dawson added: “No investor should be surprised when I write that the first six months of our financial year were challenging ones for markets.
“Despite this, I am glad to report that our business has performed creditably, in particular the diverse nature of our revenue exposures.”