The UCITS vehicle, entitled Man GLG RI Global Sustainable Growth Alternative, will aim to provide an absolute return through the use of both long and short positions in global equities. It will have a high-conviction long portfolio of between 25 and 45 high-quality stocks, and a short portfolio designed to hedge against market risks and supplement the intended alpha generation of the long book.
Manager Powe, who currently co-manages the Man GLG RI Global Sustainable Growth fund alongside Virginia Nordback, will aim to hold 60-100% of his long-book in world-leading companies with strong ESG credentials, and which meet the team’s five key investment criteria: formidable competitive leadership and purpose led culture; resilient and growing revenues; robust profitability; attractive cash flow characteristics; and full reporting on greenhouse gas emissions.
Up to 40% of long positions will be held in ‘second tier’ stocks, which are on track to meet these goals within five years.
Alongside Powe, the Article 8 fund will be co-managed by Virginia Nordback and Ikitsa Anastasov. The managers will be supported by a team of four analysts.
Powe said: “This is an exciting time to launch a fund with an ESG mandate to invest in the long-term value creation generated by the world’s strongest companies within the context of a long-short portfolio.
“In a changing world, we believe the strongest companies will prioritise sustainability, and that customers, talent and shareholders will gravitate to sustainable businesses. This fund will seek to invest in the best of these companies, wherever they are in the world, leveraging Man Group’s broader ESG expertise, and combined with a short portfolio designed to underpin the fund’s ambition to generate returns in all market conditions.”
Teun Johnston, CEO of Man GLG, said: “The launch of this fund underscores our ongoing effort to enhance our responsible investment capabilities and offer our clients a breadth of investment opportunities in this space.
“Rory and the team have an established investment process and track record of investing in both European and global equities. We are excited to launch a fund that applies the team’s expertise to an ESG mandate within a long-short framework.”
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