Objectives & Investment Policy

Generate above average returns in the medium to long term by investing into debt related instruments and the majority of the returns will be derived by the yield of the underlying investments and capital gains. The sub-fund will mainly invest in bonds and other debt related securities,  primarily denominated  in USD, whose issuers are domiciled in, or are exercising the predominant part of their economic activity in Asian countries. The sub-fund may invest in local markets and local currency bonds. The sub-fund may invest up to one third in bonds and other debt related securities without any restriction as regards to region, sector or rating, and in money market instruments and any other financial instruments linked to an interest rate. The sub-fund may invest up to 10% to the aforementioned categories indirectly through other investment funds. The sub-fund may use derivatives in order to hedge its portfolio against the consequences of adverse market developments. The portfolio is managed on a systematic basis without using a reference benchmark.

Risk Reward Profile i

Risk Reward Profile: 3
What does this synthetic indicator mean?
  • The shares of EUR Class B are classified in category 3 because the value of the share may be subject to medium variations and consequently the risk of loss and the opportunity of gain may be moderate.
  • The risk category has been determined on the basis of historical and simulated data and may not be a reliable indication of the future risk profile. The risk and reward category shown does not necessarily remain unchanged and the categorisation of the fund may shift over time.
  • The lowest category does not mean a risk-free investment.
  • Repayment of the initial investment is not guaranteed.
Which materially relevant risks are not adequately captured by the synthetic indicator?
  • The investment in debt instruments bears a credit risk insofar as the issuer may refuse or be in a position where it is not able to reimburse all or part of the interests or even of the principal due on the debt instruments. This may result in significant or even total losses of the value of the investments in these debt instruments.
  • The investment in emerging markets exposes the sub-fund to risks related to political, regulatory, financial or fiscal instabilities or uncertainties that may negatively affect the value of the investments or even question the ownership title of the sub-fund.
  • The use of currency hedging techniques, hedging the currency of the share class against the currency of the sub-fund, aims at reducing the currency risks without, however, eliminating those risks totally.
Market Risk
  • This is a general risk that affects investments of all types. Changes in the prices of transferable securities and other instruments are mainly determined by changes in the financial markets and by economic developments affecting issuers, which are themselves affected by the general situation of the global economy and by the economic and political conditions prevailing in their countries.
Equity market risk
  • The risks associated with equity investment (and similar instruments) cover significant price fluctuations, negative information on the issuer or on the market and the subordinate nature of equities versus bonds issued by the same company. Moreover, short-term fluctuations are often more extreme. The risk that the performance of one or more companies declines or is stagnant may have a negative impact on the performance of the portfolio as a whole at a given time.

Characteristics of the Sub-fund

The RAM (LUX) TACTICAL FUNDS II - ASIA BOND TOTAL RETURN FUND (the “Sub-fund”) is a sub-fund of RAM(Lux) Systematic Funds, a Luxembourg SICAV, classed as a UCITS within the meaning of Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009. Under its responsibility and supervision, the Management Company has appointed BANQUE DE LUXEMBOURG as central administration agent, which in turn has sub-contracted part of its duties, but under its responsibilities, to European Fund Administration S.A. Luxembourg.

Share Class Selection

Fiscal information

The sub-fund is subject to Luxembourg tax laws, however the investor in Belgium is subject to Belgian tax law. The investor’s tax residence may influence their own tax situation. Investors are advised to seek professional advice prior to any investment decision. Where this website refers to a special tax regime, the latter will depend on an investor’s own situation and may change over time.

(*) Belgofin status refers to the framework law of 13 December 2012 insofar as the sub-fund is likely to invest, directly or indirectly, over 10% of its assets in debt securities. Investors in the sub-fund who are natural persons will be subject to withholding tax at the rate of 30% on dividend payouts (distribution units) and/or the capital gain generated upon the sale of shares (accumulation and/or distribution units) of one or more sub-funds with more than 10% of their portfolio invested in debt securities.

Subscription and redemptions modalities

We recommend that you contact your usual financial adviser, who will be able to help you to:

  • 1

    ASSESS YOUR INVESTOR PROFILE

    (risk aversion, investment horizon and capacity, etc.)

  • 2

    TAKE YOUR CURRENT FINANCIAL SITUATION INTO ACCOUNT

  • 3

    TAILOR YOUR INVESTMENT OBJECTIVES TO YOUR PERSONAL SITUATION

  • 4

    PLAN THE BEST WAY TO ACHIEVE YOUR OBJECTIVES

Whenever you instruct your bank, your financial adviser or any other intermediary to carry out a transaction involving one of the RAM Active Investments sub-funds, we recommend that you read the sub-fund’s legal documents and identify the ISINs of the sub-funds/share classes that interest you ahead of time so that you can discuss them with your financial adviser directly. You will find these codes on the sub-funds’ factsheets (and other legal documents), and on the website.

Glossary

  • Alpha

    Alpha is used in finance as a measure of performance. Alpha specifies the difference between the performance of the sub-fund and the theoretical performance of the market it is exposed to, indicated by the beta. Alpha is generally used to measure the added value of the portfolio manager. A positive alpha indicates that the sub-fund has performed better than the performance linked to its beta. The excess return of an investment relative to the return of the respective market exposure is the investment’s alpha.

  • Beta

    Beta represents a sensitivity of a sub-fund against market movements, it is used to evaluate systemic risk. Beta is a measure, through time, of the linear link between performances of the sub-fund and a benchmark. The beta is obtained by calculating the regression line of performance of the sub-fund above the risk free rate and the performance of the benchmark. A beta above 1 indicates that the sub-fund tends to amplify market movements whereas a beta below 1 tends to nuance such market movements, suggesting a more defensive approach.

  • Sharpe

    The Sharpe Ratio is a risk-adjusted performance measure, calculated as the performance of the sub-fund above the risk-free rate divided by the standard deviation of the performance. The higher the ratio the better the sub-fund has performed, as the sub-funds marginal outperformance is higher per unit of risk. A negative Sharpe ratio indicates that the sub-fund has not outperformed the risk-free return.

  • SRRI

    The SRRI represents the risk and return profile as presented in the Key Investor Information Document (KIID). The lowest category does not imply the investment is risk free. The SRRI is not guaranteed and may change over time.

  • Volatility

    Amplitude of the variation of the price/of the value of a security, a sub-fund, a market or an index, measuring the importance of risk over a given period. Volatility is calculated through the standard deviation obtained through calculating the square root of the variance. Variance being the average of the squared differences of deviations from the mean. The higher the volatility, the riskier the security, the sub-fund may be.

  • Swing pricing

    Swing pricing refers to a process for adjusting a fund’s net asset value (NAV) to effectively pass on transaction and market impact costs stemming from net capital activity (i.e., flows into or out of the fund) to the investors associated with that activity during the life of a fund, excluding ramp-up period or termination.

  • High Water Mark

    This is the highest net asset value (NAV) that a fund has reached and for which a performance fee was paid.
    Using a high-water mark prevents the fund manager from receiving any performance fees on downside outperformance. It also means that investors do not end up paying performance fees more than once for the same increase in their fund's NAV (which is something that could otherwise happen in a fluctuating or sideways market).