Build it and they will come
If there was a frequently asked questions tab for ESG portfolio builders, it would be around how one can be diversified across the different investment styles and, in particular, how one can have value investments in an asset class which is synonymous with growth.
Paul Craig, who runs the Cirilium MPS range at Quilter, is trying to solve this problem by providing the seed capital for the launch of two value ESG funds at River & Mercantile.
The funds, which are to be called R&M European Change for Better fund, and the R&M Global Sustainable Opportunities fund, are not segregated mandates and so will be available to other investors.
River & Mercantile says the funds will be run using its usual value investing process. They will be run by James Sym and William Lough, who are established managers at the firm.
Craig says "These new funds represent a great diversification opportunity for our clients. We are impressed by R&M's differentiated approach to sustainable investing which avoids the typical ESG 'darlings', and consequently offers a strong alpha-generating opportunity.
"We have been a supporter of R&M for a number of years and are pleased to extend this successful relationship."
Perhaps Quilter's approach of 'fine, we’ll do it ourselves' is the quickest route towards solving the problem of value ESG. Though perhaps not one which is easily replicable.
