Commentaries

10 June 2021

Nicolas Jamet

The RAM (Lux) Systematic Funds - Global Sustainable Income Fund (Class-IP USD net of fee*) outperformed the MSCI World Hight Dividend Yield Index TRN$ in May (3.18% vs 2.86%)

As the economy retained strong positive momentum, high income equities performance remained strong in May. The MSCI World High Dividend Yield Index TRN$ finished up 2.86% vs 1.44% for the global equity market. Additionally, the market continued to favour stocks with attractive valuation and robust fundamental profile, which benefited the RAM (Lux) Global Sustainable Income Fund (Class-IP USD net of fee*). The fund outperformed its benchmark with a return of 3.18%. In the last portfolio rebalancing, The fund’s large cap exposure slightly increased. Also, as the IT names underperformed the broad market, the model identified more attractive companies in this sector and increased its overall allocation; IT is now the fund's biggest active exposure. The sustainability profile of the fund remains strong, with a AA MSCI Rating and Carbon Intensity 83% lower than the Benchmark  (43 Vs 250 TCO2/$M Sales). Low carbon companies performed in line with the market, while ESG leaders slightly outperformed.

Source: RAM Active Investments.