14 January 2021

Emmanuel Hauptmann

In 2020, the RAM (Lux) Systematic Funds - Global Sustainable Income Fund (Class-IP USD net of fee*) closed 2.06% behind the Index.

After a highly volatile and unpredictable year, the MSCI World High Dividend Yield Index finished the year flat (-0.03%) thanks to the post-vaccine announcement rally. The 2020 underperformance occurred in Q1 and the Fund has been reducing the spread since then. December was no exception, with the Fund being up versus the Index. The strategies identified numerous opportunities in IT, Industrials and Consumer Discretionary sectors. Non-Cyclical sectors such as Health Care, Utilities and Consumer Staples were underweight. The strong fundamental and sustainable profile of Fund didn’t benefit the strategies as ESG and Value factors underperformed the market. However, the book’s Small and Mid-Cap exposures (around 40%) were positive contributors at the end of the year, with a strong recovery from the March lows for these market segments which are likely to benefit from further dispersion and keep performing well in the recovery. Over the last few weeks, our strategies have slightly reduced the overall active sector exposure while keeping the same under/overweighted sectors.

Source: RAM Active Investments.