Derivatives
strategies

Tailored risk management
balanced with maximising returns

We help institutional investors manage their long-term risks to meet their investment objectives.

Derivatives strategies can help to flexibly manage the most prominent risks and liabilities that institutional investors have to contend with, whilst maintaining a focus on maximising long-term returns. Our approach is built around your specific needs, to ensure creative solutions tailored to your objectives.

Innovative derivatives solutions built around your needs, allowing you to remain focused on achieving your long-term return objectives.

Derivatives strategies_Hedging

Manage risks...

Core to what we do is managing the risks you face using bespoke strategies tailored to your needs

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... without sacrificing returns

Not earning return is also a significant risk. All of our strategies aim to manage risks without compromising on your return objectives.

What we offer

Clients can access our derivatives strategies through two offerings.

Liability-driven investments

Using a tailored approach to each client, we help clients reduce the risks they face in relation to changes in the value of their liabilities. This is particularly pertinent as funds have to make payouts in the future.

Generally, our strategy involves the use of interest rate and inflation swaps, supported by collateral management. Our combination of deep specialist expertise in liability management, with our size, makes us more nimble in responding to changes in the market and more responsive to your needs.

Structured equity

This allows pensions and other funds to shape their exposure to the markets, by targeting the return they need, while offering the necessary protection from falling markets. Our experienced team helps each client create tailored exposure to equity markets, through the use of equity options, as well as bonds and gilts.

Generally, this helps to reduce downside risk exposure by forfeiting a portion of returns for protection when markets fall.

Speak to our team

Arabella Townshend

Head of UK Institutional

Arabella Townshend

Head of UK Institutional

Arabella is a director, and Head of UK Institutional Distribution, working with her team to provide investment solutions to UK pension schemes, their consultants and trustees. Arabella joined River and Mercantile in 2010 from Edinburgh University where she gained a degree in Geography.

Jason Wood

Director, UK Institutional

Jason Wood

Director, UK Institutional

Jason spent 23 years trading derivatives before joining River and Mercantile in 2014. Starting in the trading pits in London in 1991 he has worked for various investment banks including Bank of America and BNP as a Market Maker and a Proprietary trader. Since joining R&M Jason worked primarily with LGPS helping them understand how derivatives can be used to create a better outcome.

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