Commentaries

13 April 2021

Nicolas Jamet

The RAM (Lux) Systematic Funds - Stable Climate Global Equities Fund (Class-PI USD net of fee*) was up 5.66% in March.

The fund advanced strongly together with Global equity in the first two weeks, on the back of strong economic numbers out of the US, and extended the gains in the second part of the month, helped by the low volatile profile of the selection.

We observed strong sector return dispersion, which the fund benefited from, with high exposure in Industrials and Consumer staples, and low exposure in Energy. The fund also benefited from a strong stock selection within-sector, driven by its strong fundamental characteristics. Indeed, as rates normalization continued into March, the market rotation from growth toward value names accelerated. Following the correction in IT names, the strategy has increasing its exposure to the sector, as more names are becoming attractive.

The Carbon Risk of the portfolio has slightly decreased in March with a Carbon Intensity, from 39.7 to 35.8T CO2/$M SALES (75% 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 9.2/10. Low carbon companies performed in line with the market, while ESG leaders slightly overperformed.

Source: RAM Active Investments.