Commentaries

14 July 2020

Emmanuel Hauptmann

The RAM (Lux) Systematic Funds - Global Sustainable Income Equities Fund finished June up 1.88%* (Ip USD class - net of fees), with the MSCI World High DY TRN index returning 0.64%.

The first week of June saw a continuation of the risk-on and short covering that characterized the month of May. During the rest of the month Equity markets traded sideways and we could finally see some return dispersion in favour of our engines, mitigating some of the large beginning of the month drawdown. The uncertainty we see in companies’ fundamentals and earnings revisions is likely to translate into more volatility in the next weeks and months, and the defensive positioning of our engines should be a positive driver of relative performance when that occurs. It has been already reflected in our excellent stock picking in the US, representing most of our relative performance over the month, mainly attributable to our allocation in Consumer sectors there.  The fact that cross-factor correlation is coming down, this points to a positive development for a healthy stock picking environment going forward. Finally, we expect the last weeks positive behaviour of our Fund to continue and we remain confident in the ability of our strategies to deliver strong alpha over the coming quarters.

*Sources : RAM Active Investments.