Trium Capital has launched a climate impact hedge fund managed by Joe Mares (pictured) and Tom Ayres.
The Trium Climate Impact Fund is a UCITS equity long/short market neutral strategy. The long book will be exposed to 50 stocks focused on companies investing in environmental solutions, alternative energy infrastructure and clean technology sectors, while the short exposure aims to hedge market and factor risk of the long positions.
Classified as Article 9, the fund aims to deliver long-term returns – with an expected net annual return of cash +6-8% – while providing low correlation to traditional asset classes. It will address challenges including climate change, waste management and water access, and be mainly invested in Europe and North America, but there will be some exposure to Asia and emerging markets.
Donald Pepper, co-CEO at Trium Capital, commented: “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.”