10 May 2021

Nicolas Jamet

The RAM (Lux) Systematic Funds - Global Sustainable Income Fund (Class-IP USD net of fee*) was up 3.44% vs 2.12% for the MSCI World High Dividend Yield TRN$ index in April.

After a strong outperformance in March, conservative names including high income equities lagged the broad market uptrend in April, amplified by the rebound of the largest mega-cap growth names. The robust fundamental profile of the selection, as well as the market cap diversification continue to benefit the fund, a fifth consecutive positive monthly spread versus the benchmark has been realised. In the last portfolio rebalancing, the model increased its allocation to small cap segment, from 12% to 17%, while reducing the large cap exposure. In term of sectors, the models slightly increased Financials and Industrials overweight, while decreasing the allocation to Consumer Staples, which is now the largest underweight versus the benchmark. The sustainability profile of the fund remains strong, with a AA MSCI Rating and Carbon Intensity 80% lower than the Benchmark (45 Vs 228 TCO2/$M Sales). Low carbon companies performed in line with the market, while ESG leaders slightly underperformed.

Source: RAM Active Investments.