River and Mercantile (R&M) has today announced that it has launched the R&M Global Sustainable Opportunities Fund (SFDR Article 8 compliant), managed by William Lough. The fund is one of the strategies within its new range of sustainable equity funds, backed by leading UK multi-asset investment provider Quilter Investors. The other fund, the R&M European Change for Better Fund, is managed by James Sym and was launched on 21 June 2022.
The Global Sustainable Opportunities strategy, which has already been successfully implemented for an institutional client, has an active stewardship approach and combines valuation discipline and contrarianism with sustainability integration. It is focused on under-appreciated opportunities created by a generational shift within several unloved areas of the market, which R&M believes are likely to see a far better cycle than they have over the last decade. These companies with such transitional characteristics are classed as ‘improvers’ and enablers’.
William Lough comments: “Our philosophy is resolutely forward-looking, seeking the future winners from emerging ESG leaders, companies driving significant improvements in their own sustainability credentials, and the companies whose products or services enable that improvement. This fund will make a real-world difference, offers attractive diversification benefits for clients, and taps into return drivers which have a long shelf-life. Combined with the opportunity to drive change through engagement, this is truly active value investing for the 21st century.”
Both new sustainable funds follow R&M’s Sustainable-PVT (S-PVT) investment philosophy, which incorporates sustainability into the team’s long-established process looking at Potential, Valuation and Timing. Rather than “carbon avoidance”, the team at R&M believes there is a requirement for investors to support the decarbonisation of polluting activities and industries that society relies upon heavily, both currently and in the future, such as construction and travel. These are investments that can make a positive and demonstrable change for good.
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