10 January 2023
Trium Capital, the multi-PM alternative asset manager, has launched the Trium Climate Impact Fund, the firm’s first hedge fund with an SFDR Article 9 classification.
Managed by Joe Mares and Tom Ayres, the fund is a UCITS equity long/short market neutral strategy and aims to deliver attractive long-term returns with low correlation to traditional asset classes while driving positive environmental outcomes and addressing challenges including climate change, waste management and water access.
Targeting 6-8% volatility with an expected net annual return of cash +6-8%*, the fund’s long exposure will consist of around 50 stocks and will be focused on companies in the environmental solutions, alternative energy infrastructure and clean technology sectors. The managers will target robust business models that will outperform over time, aiming for the most impactful investments at the most attractive valuations. The strategy’s short exposure aims to hedge market and factor risk of the long positions in a diversified manner. The opportunity set for the fund is currently in Europe and North America, though the strategy will also have selected exposure to Asia and Emerging Markets.
The new strategy builds on Trium’s existing ESG-aligned offering, including the Trium ESG Emissions Impact Fund – an Article 8 strategy managed by Joe Mares up +10.6%* in 2022 (I EUR Share Class) – and the long-only Trium Sustainable Innovators strategies, managed by Raphael Pitoun. Trium has been a signatory of the PRI since 2015 and the Carbon Disclosure Project since 2018.
*Past performance is not a reliable indicator of future returns.
Donald Pepper, co-CEO at Trium Capital, said: “Investors are increasingly looking for innovative products with low correlation to traditional asset classes and a meaningful ESG impact. We are pleased to bring to the market this truly differentiated strategy, which will harness Joe and Tom’s outstanding expertise in this field and experience of engagement-led investing to deliver alpha-driven returns alongside genuine impacts in terms of emissions and environmental benefits. We have long recognised the importance of considering ESG factors for delivering the best possible risk-adjusted returns for investors and the launch of this strategy is testament to this commitment.”
Joe Mares, co-portfolio manager of the Trium Climate Impact Fund, said: “The launch of this fund marks a significant step for Trium and offers investors an attractive return profile alongside a substantial impact in terms of ESG outcomes. There is a compelling opportunity set for this strategy in the current climate and we believe a diversified portfolio in this space can provide reliable long-term returns for investors while maintaining low volatility and correlation to traditional markets.”