Commentaries

12 March 2021

The RAM (Lux) Systematic Funds - Stable Climate Global Equities Fund (Class-PI USD net of fee*) was up 0.69% in February.

With a Global Equity Beta at 0.8, the fund benefited at the start of the month from a strong market upside and gave some performance back in the last days as a significant increase of bond yields led to volatility. Anticipations of a strong recovery post “re-opening” led to large sector performance dispersion. Healthcare sector where the strategy currently allocated 20% of the weight finished the month down 2.7% while Energy sector where the model finds only few low carbon impact names was up 15.9%.  Following the trend initiated few months ago, High Quality & Low Volatility names, typically favored by our strategy, underperformed significantly the broad equity market.

At the end of February, Health Care exposure had been reduced while the fund increased its allocation to Industrials which became the highest sector exposure. The Carbon Risk of the portfolio is very low, with a Carbon Intensity of 39.7T CO2/$M SALES (70% lower than Global equities). More than 70% of the holdings are ranked AA or AAA by MSCI, 18% have a positive ESG trend and only 2% have a negative trend. This result in an overall portfolio ESG Quality Score of 9.3/10.

Source: RAM Active Investments.