R&M Global Macro strategy

The strategy is run on a systematic basis and aims to achieve double-digit annualised returns over a cycle with positive returns in equity market drawdowns. The approach used means the strategy is likely to be uncorrelated to traditional assets and its peer group

Why R&M Global Macro strategy?

This macro team has a fundamental understanding of rotating capital across the full asset class spectrum and has the added benefit of a dedicated derivatives team.

The macro approach combines investment expertise across macro, security selection and hedging, with our ability to understand client needs in depth to build portfolio components that achieve specific objectives with a focus on reducing recovery time.

This strategy is managed by a dedicated, award-winning team, who have been managing multi-asset portfolios since 2003.

Investment strategy

The strategy aims to seek to achieve double-digit annualised returns and positive returns in significant risk asset drawdowns with Sharpe ratio greater than 1.

It seeks to achieve this through systematically combining macro and motion signals to a range of liquid asset classes. We believe this strategy has a competitive advantage over other global macro strategies, because of its ability to capture significant equity and risk asset returns when they are available, while avoiding them when they are not.

Two of our core beliefs underlie the strategy:

Highly efficient returns are achieved by varying the size of positions in proportion to the confidence in the position.

Confidence in a position is greatest where the prevailing macro drivers of the investment are consistent with the way the market is behaving –what we consider to be motion. Confidence is least where these macro drivers and motion are inconsistent.

Strategy facts

Strategy launch date

January 25 2018

AUM

$218m as at September 30 2020

Strategy managers

Mike Faulkner

Joe Andrews

Latest updates

About the strategy managers

Mike_Faulkner

Mike Faulkner
CIO

Mike founded P-Solve in 2001 and served as its chief executive officer until the merger with R&M Asset Management LLP in 2014. Under his direction, P-Solve was one of the first institutional advisers in the UK to offer fiduciary management to pension schemes. Mike has 22 years of consulting and asset management experience. He was ranked number one in the Financial News category of Europe's most influential asset managers and included in the overall top 10 in its FN 100 Most Influential annual survey in 2011. Mike is a Mathematics graduate from Imperial College, London.

Mike_Faulkner
Joe_Andrews

Joe Andrews
Portfolio Manager, Macro strategies

Since joining R&M in 2012, Joe has worked in the team responsible for delivering the fiduciary management service. Currently Joe is a member of the Macro Committee, which is responsible for setting house views for all R&M Fiduciary and Advisory clients. He also co-manages the Research & Development process responsible for idea generation and ensuring the regular and detailed monitoring of macro themes, client portfolios and underlying fund allocations as well as ongoing research into new investment products and strategies.

Joe_Andrews

Get in touch

Will Sly

Head of North America Sales

Will Sly

Head of North America Sales

Will is Head of North America Sales and is based in River and Mercantile’s Chicago office. In his role, Will is responsible for US consultant relationships and consulting with clients on their asset management and risk management needs. Prior to joining River and Mercantile, Will was a Principal at LaSalle Street Capital Management and spent 8 years at Credit Suisse where he was instrumental in the purchase of HOLT Value Associates, and served as the Co-Head of the HOLT US, a member of the Director promotion committee and as a Portfolio Manager investing in equities and utilizing derivative overlays. He started his career as a valuation specialist with a focus on shareholder value creation. Will holds an MBA and a BA from Illinois State University.

Latest perspectives

US pension briefing – April 2021

US pension briefing – April ...

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Annuity purchases: Fiduciary arrangements

Annuity purchases: Fiduciary arrangements

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Monthly macro update: April 2021

Monthly macro update: April 2021

Article April 14, 2021

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Managing pension risk in 2021

Managing pension risk in 2021

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