12 October 2020

Emmanuel Hauptmann

The RAM (Lux) Systematic Funds - Global Sustainable Income Fund (Class-IP USD net of fee*) posted a performance of -2.80% vs -2.55% for the MSCI World High Dividend Yield TRN$ reducing slightly our outperformance over Q3.

The fund underperformed on the market downside, impacted by the correction of high income regional banks in the US given their more important exposure to small business and how they are impacted by the COVID pandemic. The small cap selection of the fund was the most hurt on the downside while it still exhibits compelling valuation levels and income versus the rest of the universe. Our consumer staples picks in South Korea were among the best single stock contributors.

Over the month, the fund increased significantly its exposure to Consumer Discretionary in the US and France at the expense of Healthcare and Utilities. Overall, the fund remains skewed towards the financial sector while underweight Healthcare stocks given the un-appealing income they generate.

Source: RAM Active Investments.