Commentaries

10 May 2021

Nicolas Jamet

The RAM (Lux) Systematic Funds - Stable Climate Global Equities Fund (Class-PI USD net of fee*) was up 3.3% in April.

As US rates stabilised in April, the Value profile of the selection contributed to bring a strong risk adjusted profile. Indeed, the fund advanced together with Global equity in the first part of the month, on the back of a release of a string of impressive US economic numbers, while in the second part of the month, this upright performance was maintained with little volatility. Sector exposure stayed relatively steady, with only a small increase in Financials allocations vs a small decrease in Industrials. We continue to see attractive opportunity in healthcare (our top allocation), while our bias to low-carbon emitters makes it difficult for Energy names to enter our portfolio (Energy remains our lowest allocation then). The Carbon Risk of the portfolio has slightly decreased in April with a Carbon Intensity below 35TCO2/$M SALES (75% lower than Global equities). More than 70% of the holdings are ranked AA or AAA by MSCI, 22% have a positive ESG trend and 5% have a negative trend. This result in an overall portfolio ESG Quality Score of 9.17/10. Low carbon companies performed in line with the market, while ESG leaders slightly underperformed.

Source: RAM Active Investments.