07 October 2020
The Trium ESG Emissions Impact Fund has been awarded an ‘A’ rating by leading independent investment consultant Square Mile. The strategy has also entered Square Mile’s Academy of Funds, which showcases recommended funds to advisers and clients.
Square Mile’s recommendation on the Fund, run by portfolio manager Joe Mares and his team, was formed as a result of meticulous and in-depth research by its team of experienced analysts. An ‘A’ rating denotes a fund is ‘best in class’ within a sector or universe of funds.
Since launch, the Fund has delivered consistently strong risk-adjusted returns, despite acute market volatility. In September, the Fund returned +76bps, taking year-to-date performance to +9.34%. The equity market neutral strategy, which brings about positive impact by engaging with companies in high-emitting sectors to implement lower CO2 emissions, has also demonstrated it is a source of dependable uncorrelated returns. Since launch, the Fund has had a -0.29 correlation and a -0.06 beta to the STOXX Euro 600.
Best in class
Square Mile’s fund research is distinguished by its depth and detail. Analysts seek to understand how the fund behaves, whether it will consistently deliver on its objectives, and whether it represents good value for investors.
The ratings process is driven by qualitative research that focuses on the fundamentals – manager and environment, investment philosophy and objectives, investment process, portfolio construction, management of risk, and value for money.
Square Mile remarked in its research note: “The Trium ESG Emissions Impact Fund capitalises on the global drive to reduce greenhouse gas emissions and the regulatory enforcement of this trend. The manager makes long investments in companies which are undertaking measures to reduce their carbon footprint and environmental impact. At the same time, short investments are made in companies which have deteriorating ESG characteristics and other fundamental problems.”
Delivering on objectives
Square Mile’s analysts examine how the portfolio is constructed and ensure the level of risk is proportionate to the fund’s mandate and structure. Above all, they look for clear evidence the manager can achieve their stated objective.
Square Mile added: “This strategy is managed with very low net market exposure, so returns, being driven principally by stock selection, should also continue to exhibit low correlation to stock market indices.”
Donald Pepper, co-head of Trium Capital, says: “We are delighted to receive this rating from Square Mile, which is further recognition of the Fund as a best-in-class and innovative strategy. The research undertaken by the team at Square Mile underscores the portfolio manager and his team’s ability to source uncorrelated returns and deliver consistently on stated objectives.”
The proliferation of thematic ESG solutions is creating a homogenous set of beta-driven, momentum strategies. In contrast to this increasingly herd-like approach, the Trium ESG Emissions Impact strategy aims to exploit dispersion within investment sectors, through careful stock picking and meaningful engagement, to unearth differentiated sources of alpha,” he added.
Further information on Trium ESG Emissions Impact Fund can be found on Square Mile's "Academy of Funds" here.
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