River and Mercantile Global High Alpha Fund
London based investment manager River and Mercantile Asset Management has launched a new fund to local institutional investors.
The River and Mercantile Global High Alpha Fund offers access to the fund manager's Global High Alpha strategy, through an Australian-regulated pooled vehicle.
The fund invests in global equities using River and Mercantile's Potential, Valuation and Timing (PVT) investment philosophy.
“The launch of the first River and Mercantile unit trust in Australia represents an important milestone in River and Mercantile’s rich history,” River and Mercantile’s chief executive of asset management, James Barham, said.
“We have been working collaboratively with the investment consulting community and institutional investors in Australia and New Zealand since 2013, designing truly actively managed products that meet the genuine needs and investment appetite of this region. Responding to increasing demand we are very proud to now be able to offer this fund to a broader audience.”
Q&A with Hugh Sergeant on River and Mercantile's first Australian-regulated pooled vehicle
- Why did you decide to launch a fund in Australia?
We have been working with the superannuation market in Australia and New Zealand for the past five years and access to our investment solutions has principally been through segregated mandates. It was clear there was demand from the smaller super market, along with family offices and endowments, for a pooled solution where allocations were unlikely to be of a size that warranted a separate account. The launch of the River and Mercantile Australian Unit Trust platform provides a great opportunity to launch additional funds from the River and Mercantile Group investment stable where we see the opportunity to provide relevant solutions to meet investment need. It is a clear statement of intent that we see the Australian market as a core growth market for the group and we will continue to invest in the region. We recently announced the establishment of two offices in Australia, in Sydney and Brisbane and the recruitment of Tim Horan as Managing Director for our business in the region. We have previously operated on a delegated basis from London, however we believe that it is critical for investment businesses with ambitions to become significant players in this market to make the necessary local investments in personnel and infrastructure to ensure that the emerging client base is properly supported.
We were delighted to work with Willis Towers Watson and Legal Super in the launch of the pooled fund and we are seeing increased demand from our core markets in response. We were equally delighted to work with Equity Trustees as the Responsible Entity who have provided significant support in developing the proposition.
"It was clear there was demand from the smaller super market, along with family offices and endowments, for a pooled solution where allocations were unlikely to be of a size that warranted a separate account."
- Of all your funds, why did you think this fund was the most relevant to the Australian investor?
We manage a range of investment solutions for our client base in the UK, Europe, US and Australia and New Zealand. In the Australian market place it is clear that whilst demand for domestic equities will remain there is growing demand for global solutions. Our Global High Alpha strategy has been the value solution of choice for many of our Institutional and quasi Institutional clients in separate account form and we were keen to make this available in a pooled format. We believe passionately that everything that we provide for our Global client base must be investment relevant and demonstrate investment excellence. Our Global High Alpha strategy meets both of these criteria and in spite of the value headwinds has provided some excellent absolute and relative returns for our clients.
The investment in developing a domestic pooled platform is not insignificant and we will continue to add solutions to this platform as our business and we have a range of strategies including Emerging Market, long only and absolute return, along with Systematic Quality and Global Macro strategies that in time we will make available. In addition we have recently been working with a number of potential investors regarding a lower cost systematic solution to Australian Domestic Smaller Company Equities and whilst capacity is always a consideration this is a strategy that would be perfectly positioned to be available on our unit trust platform for Australian domestic clients whether they be large Superannuation investors or the private individuals looking to drive investment return at a fair price.
Managing Director, Australia and New Zealand
River and Mercantile Asset Management
Ph: +61 7 3012 6454 | M: +61 447 866 097