'A' rating propels Trium ESG Emissions Impact Fund into Square Mile’s 'Academy of Funds'
The Trium ESG Emissions Impact Fund has been included in Square Mile's Academy of Funds, having been awarded an 'A' rating by the investment consultant. The Academy is a showcase of recommended funds for advisers and clients.
Since launch, the fund, which is run by a team led by portfolio manager Joe Mares, 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 per cent. 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.
Square Mile says the fund's 'A' rating, which denotes a fund that is ‘best in class’ within a sector or universe of funds, is a result of meticulous and in-depth research by its team of experienced analysts.
Square Mile's research note reads: “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.”
When rating funds, Square Mile’s 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’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.
Donald Pepper, co-head of Trium Capital, said: “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."