Press release June 9, 2020

River and Mercantile launches low cost share class for Emerging market strategies

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  • GBP share classes launched with heavily discounted fees to provide UK investors cost effective access to long term successful EM Equity strategies
  • Significant return potential in Emerging Market (EM) Equities
  • Coronavirus effect has further created major pricing anomalies and the chance to buy quality businesses at depressed values

River and Mercantile launches low cost share class for Emerging Markets strategies amid “best opportunity in a decade” to invest in the sector.

In launching attractively priced sterling share classes for his two Emerging Market Equity funds, Al Bryant, Head of Emerging Market Equities at River and Mercantile, believes this is a time all investors must consider raising allocations.

“It’s a long time since I can recall such value and embedded return potential being available in

Emerging Market Equities. It’s a consequence of a challenging few years combined with the impact of Covid-19. But drill into the performance and trading outlook of growth, quality, and select cyclical EM companies and the investment case is extremely compelling.

“The relative value of EM equities and underlying currencies are now complimented by renewed growth expectations of 14% over the next 2 years, their best absolute rate in 10 years. Double digit growth trading at 15 times and yielding 3% is unmatched by US and European equities alike, creating an upgrade for investors on all fronts.”

Bryant runs two strategies: the River and Mercantile Emerging Market Opportunities ILC Equity and Emerging Market ILC Equity Funds, both with successful 8 year track records. From today, Partner share classes for each fund are available at a discounted annual management charge of 35bps, allowing investors access to emerging markets in a cost-efficient structure.

David Hanratty, Global Head of Distribution at River and Mercantile, said: “We recognise that in order to successfully bring a new fund to the UK market we need the support of foundation clients in the early days as we build AUM. Therefore, we are committed to acknowledging early supporters through this heavily discounted management fee in our Partner share class. These are quality funds with strong track records, managed by a well-established and experienced team.”

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