Commentaries

8 February 2021

The RAM (Lux) Systematic Funds - Stable Climate Global Equities Fund (Class-PI USD net of fee*) was down 1.49% in January versus a 0.99% decline in the MSCI World Index TRN$.

End of 2020’s rally extended in the first 3 weeks of January, with the market up close to 3%, pushing high beta names to new highs, further increasing the spread with more conservative names and impacting negatively the relative performance of the fund. A market reversal of close to 4% occurred in the last few days, of the month, especially in the US, after retail investors targeted high shorted names, pushing hedge fund to deleverage. The stable profile of the fund proved useful and the drawdown was limited to 2.7% over this period. World ESG Indices were roughly in line with the main indices. The current fundamental profile of the fund has improved compared to previous months with for example Return on Assets at 3% vs 2.8% end of 2020, while the benchmark is steady at 1.2%. The strategy kept overweighting Consumer staples which is now the biggest active sector exposure, while reducing the overweight in Healthcare. IT is still the biggest underweight followed by Consumer Discretionary.

Source: RAM Active Investments.