Commentaries

13 April 2021

Nicolas Jamet

The RAM (Lux) Systematic Funds - Global Sustainable Income Fund (Class-IP USD net of fee*) was up 7.25% in March, strongly outperforming the MSCI World High Dividend Yield Index TRN$ (up 6.16%).

Strong economic numbers out of the US as well as further rates normalization favoured high income equities in March. Additionally, an acceleration of market rotation toward value names led to an outperformance of the RAM (Lux) Global Sustainable Income Fund.

The fund sector and market cap positioning slightly penalised the strategy vs the benchmark, with Small and Mid-Cap underperforming the Large Cap Universe. The outperformance was driven by the model’s strong selection across sectors and market cap segments, with the Large Cap selection up 8.2%. In the last portfolio rebalancing, the model reduced its biggest sector active exposure, from + 9% to +4% for Industrials, and from -11% to -5% for healthcare. The largest underweight is now Utilities (-7%) while the largest overweight is financial (+6.5%). The fund market cap exposure remains virtually unchanged. The sustainability profile of the fund remains strong, with a AA MSCI Rating and Carbon Intensity 76% lower than the Benchmark (53 Vs 223 TCO2/$M Sales). Low carbon companies performed in line with the market, while ESG leaders slightly overperformed.

Source: RAM Active Investments.