13 November 2020

Emmanuel Hauptmann

The RAM (Lux) Systematic Funds - Global Sustainable Income Fund (Class-IP USD net of fee*) posted a performance of -1.20% vs -3.20% for the MSCI World High Dividend Yield TRN$
In October, global economies corrected over the month amidst a worsening of the second wave of Covid in developed countries and disappointing Tech results, not to mention uncertainties surrounding the US election and the potential explosive situation that could result from it. It was overall a good month for Value-biased strategies, the fund out-performed World high yielders on the market downside thanks to positive stock selection, despite a correction of high-dividend Italian financial picks.

Overall, the global market correction hit high income stocks at the end of the month, amidst uncertainty about the current earnings recovery, but the sustainable income fund still finished the month ahead of global high dividend stocks. Finally, despite very attractive levels of valuation (at less than four times earnings), names like AMC Networks, US cable broadcaster, under-performed on the downside, reaching very compelling yield levels.

Source: RAM Active Investments.