Fixed Income Monthly Comments - March 2025

Global Bond Total Return

Risk assets remain on the backfoot this month, with S&P 500 down 10% from the recent high at some point during the month. Europe also consolidated from the highs, but to a lesser extent than the US markets. Another major move this month has been European rates up, with German parliament vote that allows the Government to increase the deficits by a significant margin, to fund new infrastructures and military equipment. This new fiscal framework from the German Government is significant over the medium term for Europe, as it shows less focus on fiscal rectitude, although the growth impulse in the short term will be limited.

With USD and MXN rates outperforming Euro and UK rates, we booked some profit, reducing duration in USD and MXN, while increasing it in EUR and GBP. The traditional portfolio was down this month, as spreads widened overall, while rates contribution was only slightly negative. Both US and European curves steepened and as we reach intermediate targets, we booked some profit and reduced our exposure. As SEK and NOK currencies outperformed, we reduced our longs against Euro particularly, and also reduced the MXN exposure as the currency outperformed this year. The contribution of our Long/Short strategies, as well as our FX portfolio, was positive.

At the end of the month, the -RAM (Lux) Tactical Funds – Global Bond Total Return Fund’s (Class B USD) duration stood at 5 years and the average credit quality was AA-.

For a complete overview of the fund performance, please click on the above-mentioned links in this document.

*The performance is gross of management fees and operational costs (0.60% management fee and 0.40% of operational costs, for a TER of approximately 1%).

** Credit Rating: is a parameter used by banks and lending institutions to determine whether an applicant is deserving of the confidence necessary for the granting of a loan. This parameter makes it possible to measure the risk of consumer default and determine the economic conditions applicable to consumers. The highest rating is indicated by the letters: AAA. This is the indication of highest financial security. This is followed by: AA, A, BBB, BB, etc. The lowest credit rating corresponds to the letter C. This letter identifies a high risk of financial default and is a figure taken into great consideration by each lending institution.

RAM Asia Bond Total Return

March was another challenging month for global markets, driven by mounting concerns over economic growth, tariff threats, and cautious corporate earnings guidance. The US S&P 500 and NASDAQ declined by 5.8% and 8.2%, respectively, while China's Shanghai Composite managed a modest 0.4% gain. The front end US Treasury notes rallied on safe haven trades. The 2-year rates declined by 11bps to 3.88% that led to steepening of the 2Y10Y spreads to +32bps. Asia credit, as tracked by the J.P. Morgan Asia Credit Index, was nearly flat, with positive rates movement offset by a 16-basis-point widening in spreads. Asia HY outperformed IG, posting a 0.37% return compared to IG's 0.04%. In credit markets, the primary issuance in Asia rebounded significantly following February’s lull. March saw USD 24 billion in new issuance, up from just USD 4 billion in the previous month. Investment-grade corporates dominated the pipeline, with substantial deals from Malaysia, Hong Kong and Korea. Year-to-date gross issuance stood at USD 52.2 billion, marking a 61% increase from the prior year.

The RAM (Lux) Tactical Funds II - Asia Bond Total Return Fund’s (Class PI USD net of fees****)  recorded a monthly loss of 0.37%, bringing its year-to-date performance to 1.74% compared to the index's 2.29%. This decline was largely due to its underweight position in China and underperformance in India HY. Duration remained aligned with the index at 4.5 years, while investment-grade exposure was reduced by 3 percentage points to 57%. Moving forward, the fund will continue refining its duration mix and taking a selective approach to HY investments to enhance yield and alpha.

For a complete overview of the fund performance, please click on the above-mentioned links in this document.

*** The fund is managed without reference to a specific benchmark. The Index used is not intended to be a restrictive definition of the investment universe. The composition of the fund's portfolio may differ significantly from that of the benchmark index.

**** All fees and expenses, except subscription and redemption fees, are taken into account

Important Information

The RAM (Lux) Tactical Funds – Global Bond Total Return is a Sub-Fund of RAM (Lux) Tactical Funds a Luxembourg SICAV with registered office: 14, Boulevard Royal L-2449 Luxembourg, approved by the CSSF and constituting a UCITS (Directive 2009/65/EC).
The RAM (Lux) Tactical Funds II – Asia Bond Total Return is a Sub-Fund of RAM (Lux) Tactical Funds II, a Luxembourg SICAV with registered office: 14, Boulevard Royal L-2449 Luxembourg, approved by the CSSF and constituting a UCITS (Directive 2009/65/EC). 

Please note that the share classes mentioned in this document may not be registered in your country of domicile. 

This marketing document is only provided for information purposes to professional clients, and it does not constitute an offer, investment advice or a solicitation to subscribe shares in any jurisdiction where such an offer or solicitation would not be authorised, or it would be unlawful. In particular, the Fund is not offered for sale in the United States or its territories and possessions, nor to any US Person (citizens or residents of the United States of America).

This document is confidential and is intended only for the use of the person to whom it was delivered; it may not be reproduced or distributed.

There is no guarantee that the holdings shown will be held in the future. The investment described concerns the acquisition of shares in the Sub-Fund and not in a specific underlying asset.

Past performance is not a guide to current or future results. There is no guarantee to get back the full amount invested. The performance data do not take into account fees and expenses charged on subscription and redemption of shares nor any taxes that may be levied. As a subscription fee calculation example, if an investor invests EUR 1000 in a fund with a subscription fee of 5%, the investor will pay to his financial intermediary EUR 50.00 on the investment amount, resulting with a subscribed amount of EUR 950.00 in fund shares. In addition, potential account keeping costs (by investor’s custodian) may reduce the performance. Some shares in the Sub-Fund apply a performance fee. Leverage intensifies the risk of potential increased losses or returns.

The Management Company may decide to terminate the marketing arrangement in place in any given country in accordance with Article 93a of Directive 2009/65/EC.

Changes in exchange rates may cause the NAV per share in the investor's base currency to fluctuate.

Particular attention is paid to the contents of this document but no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof.

Prior to any transaction, clients should check whether it is suited to their personal situation, and analyse the specific risks incurred, especially financial, legal and tax risks, and consult professional advisers if necessary.

Please refer to the Key Information Document and prospectus with special attention to the risk warnings before investing. Global Bond Total Return Fund is classified as art.8 SFDR. Asia Bond Total Return Fund is classified as art.6 SFDR. For further information on ESG, please refer to

https://www.ram-ai.com/en/regulatory-information and the relevant Sub-Fund webpage, section "Sustainability-related disclosures".

The prospectus, constitutive documents and financial reports are available in English and French while IIDs are available in the relevant local languages. These documents can be obtained, free of charge, from the SICAVs’ and Management Company’s head office and www.ram-ai.com, its representative and distributor in Switzerland, RAM Active Investments S.A. and the relevant local representatives in the distribution countries.

A summary of Investors’ rights is available on: https://www.ram-ai.com/en/regulatory-information

Issued in Switzerland by RAM Active Investments S.A. which is authorised and regulated in Switzerland by the Swiss Financial Market Supervisory Authority (FINMA). Issued in the European Union and the EEA by the authorised and regulated Management Company, Mediobanca Management Company S.A. 2 Boulevard de la Foire, 1528, Luxembourg, Grand Duchy of Luxembourg.

The source of the above-mentioned information (except if stated otherwise) is RAM Active Investments and the date of reference is the date of this document.