12 July 2021

Nicolas Jamet

The RAM (Lux) Systematic Funds - Global Sustainable Income Fund (Class-IP USD net of fee*) slightly underperformed its benchmark with a performance of -0.96% vs -0.87% for the MSCI World High Dividend Yield Index TRN$. A 1.56% performance spread has been realised (5.7% for the fund Vs 4.14% for the index) over the second quarter of the year.

Global equity market sentiment was dominated by the fear of COVID-19 delta variant, leading to a setback in the Value Vs Growth reversal that was initiated few months ago. This led to an underperformance of The MSCI World High Dividend Yield Index TRN$. The index finished down 0.96% vs a positive performance of 1.53% for the global equity market. In the last portfolio rebalancing, the model increased its allocation to large cap companies to 71% from 65%, while the sector exposure was virtually unchanged. The sustainability profile of the fund remains strong, with a AA MSCI Rating and Carbon Intensity 73% lower than the Benchmark (64 Vs 241 TCO2/$M Sales). ESG leaders performed in line with the market, while Low carbon companies slightly underperformed. 

Source: RAM Active Investments.