Commentaries

13 November 2020

Emmanuel Hauptmann

The RAM (Lux) Systematic Funds - Stable Climate Global Equities Fund (Class-IP USD net of fee*) posted a performance of -2.32% in a market down 3.1%.
The fund outperformed on the market downside, as the Tech underweight of the fund helped in the wake of more COVID worries by the market and IT earnings’ disappointment, not to mention uncertainties surrounding the US election and the potential explosive situation that could result from it. The fund benefited from very good picks in Consumer staples, Bunge Ltd, the sustainable agri-business being one of the top contributors. We also observed a good selection within Tech names that also helped build the spread over the month. On the IT side, Alphabet on which the strategy estimated strong sustainable alpha was one of top contributors last month.

October’s main allocation changes were to be found in Switzerland and Australia where we decreased our exposure, in favor to countries like Sweden and France. But it is in term of sector where we observed the most important re-allocation, with a strong decreased exposure in Financials and Communication services and IT in favor to Industrials and consumer sectors. The fund remains heavily skewed towards the best-in-class ESG companies of the US Healthcare sector. We continue to maintain a portfolio ESG rating above the market with CO2 emissions largely below the global equities.

Finally, as per our CO2 emission objectives, we wanted to remind investors that early October we reset our fund Carbon Footprint over Q3 2020 offsetting the portfolio CO2 emissions selecting 2 CDM projects with interesting additionality and co-benefits.

Source: RAM Active Investments.