Commentaries

12 March 2021

Emmanuel Hauptmann

The RAM (Lux) Systematic Funds - Global Sustainable Income Fund (Class-IP USD net of fee*) was up 3.46% in February, strongly outperforming the MSCI World High Dividend Yield Index TRN$ (up 1.28%).

After a strong start of the month, global Equities gave some performance back at the end of February as a significant increase of bond yields led to volatility. The performance was driven by the fund’s robust fundamental profile as it benefited from further market rotation into Value names. Size diversification continued to be rewarding in February; the good selection in the small and mid cap space also drove the portfolio’s return higher.

In the last portfolio rebalancing, the model increased its allocation to Small Cap names, while decreasing its large cap exposure. The strategy slightly reduced the Financial overweight; Industrial is now the biggest overweight. The fund is still identifying less Healthcare and Consumer Staples attractive names than the Benchmark. The sustainability profile of the fund remains strong, with a AA MSCI Rating and Carbon Intensity 80% lower than the Benchmark (43 Vs 216 CO2/$M Sales).

Source: RAM Active Investments.