ES R&M Dynamic Asset Allocation Fund

The fund uses dynamic asset allocation, driven by the prevailing investment conditions, and aims to achieve a return of greater than 4.125% per year in excess of cash, based on the SONIA interest rate.

Why Dynamic Asset Allocation?

This fund enables investors to take advantage of, what we perceive to be the most attractive investment opportunities that suits the prevailing market conditions, taking advantage of investments across a range of liquid asset classes.

Investment strategy

The objective of the fund is to achieve an average return of 4.125% per year in excess of cash based on the SONIA interest rate over a rolling three year period, net of all fees.

The Fund will have a dynamic asset allocation to suit the prevailing investment conditions and to take advantage of perceived investment opportunities identified across a range of liquid asset classes.

Investment process

Drawing on our proven skills and capabilities in asset allocation, stock selection and derivatives management, the Dynamic Asset Allocation (DAA) strategy is managed by the same team and uses the same investment process as our successful fiduciary management service for pension schemes which has been running since 2003. The long-only strategy is built on our four key investment pillars of:

Diversification
R&M seeks to diversify across a range of asset classes, individual positions and return drivers in order to reduce the risk of not meeting the investment objective.

Asset rotation  
R&M will make substantial use of rotation, whether this is in asset allocation or the selection of alpha strategies, in pursuit of added value and improvement of the stability of return relative to the objective.

Hedging risks that don't reward adequately
R&M will seek, where it is cost effective to do so, to hedge risks where we expect risk to be disproportionately high compared to the expected return and/or its credibility.

Appropriate use of active management
R&M will make use of active management within markets or segments of markets where we believe it offers meaningful added value, and/or the active strategy materially improves the likelihood of meeting the objective through a significant reduction in risk to the strategy.

Fund facts

AUM

£221.6m as at 30 November 2021

Benchmark

SONIA + 4.125% p.a.

Fund manager

River and Mercantile Investments Limited

Performance

Speak to us

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.

Graham Martin

Associate Director, UK Institutional

Graham Martin

Associate Director, UK Institutional

Graham is an Institutional Sales Director, developing and supporting institutional clients across Europe that invest in our equity, derivatives and alternatives strategies. Prior to joining R&M, Graham worked at Optima Fund Management for 11 years as Managing Director and Head of European & Middle Eastern Sales. Graham was at Gartmore for nine years, the last five of which as Hedge Fund Business Development Director on a small team selected to build a $6 billion hedge fund business. Graham has also held senior roles in investment management at BRI group and at Pointon York and is a non-executive director of Carvetian Capital Management. Graham is a UK Associate of the Society of Investment Professionals and holds a degree in Financial Services from Bournemouth University.

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