News 18 November, 2022

River and Mercantile achieves strong fund ratings by Sustainable Investment Advisor, Mainstreet Partners

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Investment specialist River and Mercantile (R&M) announces that its two sustainable equity funds, launched earlier this year, have been highly rated by independent and dedicated Sustainable Investment Advisor, Mainstreet Partners.

The R&M European Change for Better Fund (SFDR Article 9 compliant), managed by James Sym, was rated 4.8 out of a maximum of 5.0, and the R&M Global Sustainable Opportunities Fund (Article 8 compliant), managed by William Lough, was rated 4.0. The funds follow R&M’s Sustainable-PVT (S-PVT) investment philosophy, which incorporates sustainability into the investment manager’s long-established process looking at the characteristics of Potential, Valuation and Timing. The two SFDR compliant funds invest in companies which the team believes can make a significant improvement in their carbon footprint, as well as companies which enable this improvement for others.

Mainstreet Partners, which counts some of the most sophisticated and leading wealth managers and institutional investors among its clients, implements a unique process when evaluating a fund’s sustainability level, and undertakes a 3-pillar holistic approach which is designed to eliminate the risk of ‘greenwashing’ in investment products.

Al-Amin Miah, Research Analyst at Mainstreet Partners, commented: “Our ESG ratings assess a fund in a holistic way taking into consideration the asset manager, the specific investment strategy and the portfolio. Our unique due-diligence model assesses a very large number of factors, but one of the standout points as to why the R&M European Change for Better and Global Sustainable Opportunities Funds have achieved a strong sustainable rating is down to R&M’s process by which financial materiality is linked to a sustainability framework (S-PVT), as well as their complete confidence in proprietary scoring systems. With the recent inclusion of MiFID II suitability assessment requirements, it has become even more prevalent to support a clear and suitable methodology for defining what a “Sustainable Investment” is. We have analysed hundreds of frameworks, from SDG alignment to internal ESG scores, and we believe that robust and credible frameworks are now vital in order to meet regulatory criteria.”

James Sym, Head of Equities at River and Mercantile, added: “We’re delighted that Mainstreet Partners recognises R&M’s distinct approach and supports the funds’ sustainability objectives, which is reflected in the high ratings the funds have achieved.

"Our proactive philosophy clearly resonates with investors, and we believe our truly differentiated approach will generate returns and improve wealth through responsible investment that actively promotes positive societal and environmental change.”

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