River & Mercantile is set to launch the first fund for James Sym, who joined the firm in June from Schroders, on 30 September.
The ES R&M European fund will hold between 30 and 50 stocks and provide access to European ex-UK equities in an unconstrained fashion.
The first in a suite of European equity funds being developed, the fund will be driven primarily by a bottom-up process, although the flexibility of the unconstrained strategy will allow Sym to make top-down calls, "particularly during turns in the business cycle when he identifies opportunities to make an outsized return".
Only companies that contribute "in a positive way to their customers and society" will be considered for inclusion in the portfolio, which will aim to provide a sustainable yield "as a consequence of the investment process rather than a ‘reach for yield'" from it ESG credentials.
Sym said: "There is a great opportunity in Europe today. The region has gone through four massive crises in the last ten years which has created many attractive investment opportunities. Additionally, we see Europe's response to the pandemic as the genesis of a brighter future for the region.
"The strategy will offer investors a great chance to take part in a European stock market resurgence. It is also very important to me that I can explain to my investors why they can be proud of investing in every single holding, and as such how they are contributing to positive change in society."
Simon Smith, head of UK wholesale at River and Mercantile, added: "The dominance of quality and growth stocks over the last decade has led to a very narrow European fund sector where investors have often found it difficult to diversify. The ES R&M European Fund will offer something different that will help investors construct more resilient portfolios with a sound ESG underpinning.
"At a time when Europe has new-found significant structural tailwinds to recovery and growth, we are excited to launch a fund so well placed to navigate the region's diverse markets as we continue to grow our active equity proposition with the aim of meeting clients' evolving needs."