Investments  

River & Mercantile brings World Recovery to retail market

River & Mercantile has made its World Recovery fund available to the retail market, having soft-launched the fund in March.

The fund, managed by Hugh Sergeant, follows a similar strategy to the one employed by Mr Sargeant’s R&M UK Long Term Recovery fund.

A spokesman for River and Mercantile said the fund was a “natural progression” for the strategy adding the stock-picking strategy involved looking for recovery stocks mainly in developed markets.

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The R&M World Recovery fund currently has its highest weighting in Europe, at 31 per cent, with 27 per cent in US stocks, 17 per cent in the UK and 16 per cent in Japan.

The fund, which was seeded with money from firms such as Psigma Investment Management and Cardale in March 2013, has reached £50m in assets and has now been made available to the wider retail market on platforms.

It is only available in a clean share class with an annual management charge of 1 per cent and a minimum investment of £1,000.

Since its launch in March, the fund has delivered a return of 9.3 per cent, according to FE Analytics, compared to a 2.7 per cent rise in the MSCI World index.

Since the launch of the UK Long Term Recovery fund in July 2008, it has delivered a return of 76.1 per cent compared to the average return of 50.1 per cent from funds in the IMA All Companies sector.