14 January 2021

The RAM (Lux) Systematic Funds - Stable Climate Global Equities Fund (Class-PI USD net of fee*) was up 2.44% in December versus 4.14% for the MSCI World Index TRN$. The Fund closed the year up 16.09% (since inception on July 9th 2020 until year-end) versus 20.80% for the benchmark on the same period.

As the market rally continued in December, investors embraced risk by bidding up volatile/highly valued stocks. Low Volatility was among the worst performing factors, and minimum variance indices strongly lagged their benchmark. The 2020 underperformance has been realised since Pfizer vaccine announcement early November. The conservative profile of the Fund (beta of 0.85) was the main detractor of performance, coupled with an underweight IT/ overweight Healthcare sector allocation. The strong ESG profile of the Fund didn’t help the performance as World ESG Indices underperformed the main Indices, and low carbon names were in line with the market. The strategy is currently building an overweight position on Industrials and Consumer Staples sectors, while maintaining its strong fundamental profile intact.

Source: RAM Active Investments.