River and Mercantile has launched a new strategy for Alex Stanic, the firm’s head of global equities, at the request of an institutional client.
The River and Mercantile Overseas Equity fund will be differentiated from Stanic’s other products through a mandate that excludes the UK.
The MSCI World index has a 9% weighting to the UK, so some other global equity funds can be less diversified from the FTSE than may be desired.
Stanic (pictured) joined River and Mercantile in 2009 from Newton, where he was head of global equities and managed the £1.8 billion Global Opportunities fund.
At River and Mercantile, Stanic already heads three other funds: the £131 million Global Equity fund, the £166 million Global Opportunities fund, and the £2 million International Equity ex-US fund which launched in December.
The Global Equity fund has returned 19% over the past three years, compared with 22.5% from the MSCI All Country World index, having been affected by several stock-specific shocks including to the Budget-hit Just Retirement and Gotham City Research-hit Quindell as well as an overweight to the now struggling Japanese market.
‘This remains a frustrating time for performance as excellent progress from our investments in Europe has not shone through due to weakness in Japan,’ Stanic commented. ‘However, we remain confident that our investments in Japan have the potential to deliver strong returns.’
A spokesperson for River and Mercantile told Wealth Manager that the firm would consider making the fund more widely available once it had established a track record and if there was sufficient demand.