JO Hambro Capital Management (JOHCM) has launched an impact investment fund with its affiliate investment manager Regnan in a move the asset manager said will help it “remain relevant” in an evolving marketplace.
The Regnan Global Equity Impact Solutions Fund is a high conviction, diversified, global multi-cap portfolio, and is Regnan’s first strategy for the UK market.
“We have recognised the marketplace is evolving and JOHCM needs to remain relevant,” said Alexandra Altinger, chief executive for UK, Europe and Asia. “We see this launch with Regnan as very distinct from anything JOHCM would be able to do in the sense that Regnan has always purely been about responsible investing and beyond. This is a heritage JOHCM absolutely does not have.”
The open-ended investment company will invest in 30-40 companies that find “solutions to the environmental or social challenges we face today”, according to lead fund manager Tim Crockford, whose four-person team has moved to Regnan from Federated Hermes where it launched a similar strategy, the £200m Hermes Impact Opportunities Equity Fund, in 2017.
The fund team, which comprises Crockford, fund manager Mohsin Ahmad, and analysts Maxine Wille and Maxime Le Floch, have developed their own investment taxonomy based on the UN’s Sustainable Development Goals.
“This is not going to be mega-cap global conglomerate companies, you’re not going to find the traditional FAANG stocks,” Crockford said.
“Expect to see exposure to the electric vehicle value chain through some of the more unknown companies that are helping automakers transition. In the health and wellbeing space don’t expect to see big pharma, expect to see some companies such as the leading infectious disease diagnostic company.”
The fund’s A-share class will have an annual management charge of 0.75%, subject to a minimum £1,000 investment. Large investors can take advantage of a seed share class featuring reduced fees and an expense ratio cap. The seed share class is subject to a minimum initial subscription of £1m and has a £100m limit.
Subject to regulatory approval, an Irish-domiciled OEIC sub-fund will also be launched in coming weeks to allow European and Asian investors access to the investment strategy.