Commentaries

14 January 2021

Emmanuel Hauptmann

RAM Active Investments  RAM (Lux) Systematic Funds - US Sustainable Equities Maxime Botti Partner & Senior Systematic Equity Fund Manage

The RAM (Lux) Systematic Funds - US Sustainable Alpha Fund (Class-PI USD net of fee*) posted a performance of +2.94% vs +4.06% for the MSCI North America Index TRN$. The Index finished the year with a strong +19.94% return in an extremely shaky and complex year to navigate.

The Fund closed the year underperforming negatively impacted by its defensive bias and its high diversification. This cautious positioning, which arose in a context of highly uncertain earnings trends, costed the Fund in December, as the major risk-on for global Equities continued on the back of vaccine optimism. Although the Fund’s underweights in Banks, Energy and other Covid-sensitive stocks – with sometimes weak ESG profiles – did not cost as much as in November, the Fund’s exposures to Consumer Staples and Defensive industries detracted from performance. The Index also benefited from the rally of a few mega-caps (in particular its top position Apple) in which the Fund had no or little exposure. In December, the Fund mainly re-allocated out of Information Technology and Communication Services, to Industrials and Consumer Discretionary. Our main active allocation remains within Healthcare, Industrials and Consumer Staples (overweight), as well as in Communication Services, Financials, Utilities and Real Estate (underweight).

 

Source: RAM Active Investments