Switzerland-based asset manager RAM Active Investments (RAM AI) is launching a Global Sustainable Equities Fund with the objective of tackling climate issues while providing investors with an active strategy with strong ESG standards.
RAM AI’s ESG approach is the product of extensive research exploring alternative data using the development of the RAM AI Machine Learning (ML) infrastructure. The firm also uses a Natural Language Processing (NLP) based framework for ESG Integration.
Using the ML infrastructure, the firm is able to select companies using financial and ESG data, integrating unstructured ESG news flow on firms to improve selection.
As climate change concerns continues to grow, RAM AI believes its role as an asset manager is to provide investors with a differentiated solution to low-carbon investing. Emmanuel Hauptmann who heads the Systematic Equity research said: “the RAM ML team has made tremendous advances in building the strategy with the objective to provide a selection of best-in-class, low-carbon companies without compromising performance”.
Rather than simply relying on an exclusionary model like other firms seeking to bolster their responsible investing credentials, RAM AI’s sustainable alpha approach aims to leverage a myriad of ESG and non-ESG data sources to identify the most attractive sustainable return opportunities in each industry. Nicolas Jamet, who leads the research efforts on ESG integration added: “Our research effort is based on hypothesis testing; understanding how the ESG profile of a given company impacts, not only future stock performance, but also current/future fundamentals and ultimately financial returns.”
The Global Sustainable Equities Fund is available in a UCITS format to investors in Luxembourg, Germany, Denmark, Spain, Netherlands, Italy, Norway, Sweden, Portugal, United Kingdom, Singapore and Japan. The fund is currently in the process of being registered in Switzerland. RAM AI will also aim to offset the Fund’s (low) carbon emissions (Scopes I and II) using carbon compensation certificates (CERs) in accordance with the Clean Development Mechanism (CDM) rules at no additional cost to investors.
