8 February 2021

Emmanuel Hauptmann

The RAM (Lux) Systematic Funds - Global Sustainable Income Fund (Class-IP USD net of fee*) was down 0.27% in January while the MSCI World High Dividend Yield Index TRN$ dropped 1.31%.

Despite our current higher allocation to US compared to the benchmark, we benefited from a strong stock selection in the country, across sectors and market capitalization segments. Size diversification was rewarding in January, as small and mid-cap companies overperformed large cap. 

In the last portfolio rebalancing, the model identified more names in the large cap space at the expense of the small cap segment. The fund is currently positioned with 65% of large Caps, 22% of mid-caps and 13% of small caps. The strategy is building a stronger overweight in Financials while slightly reducing IT overweight. The highest underweight sector remains in Healthcare.

Source: RAM Active Investments.