Systematic Equities Monthly Comments - March 2025

RAM Emerging Markets Equities

Emerging Markets outperformed global developed markets again over the month of March, ending positive, up 0.6%, while MSCI World corrected by 3.9%.

Chinese stocks still led the market higher, in the continuation of the move seen since the beginning of the year.

The RAM (Lux) Systematic Funds - Emerging Markets fund (hereinafter ‘the Fund’) (Class-IP USD net of fee*) outperformed over the month despite its underweight to Chinese Equities, as very strong selection of stocks in Taiwan and China contributed positively.

Attractive tech picks in Taiwan and non-cyclicals in China were among the fund’s best performers.

The fund’s Brazilian selection kept performing well, which is now leading the strategies to take profit on a number of stocks in the country, reducing our overweight.

Indian stocks were increased by the strategies over the month but the country remained a large net underweight, which detracted relative performance over the month as Indian stocks bounced back after more than 6 months of underperformance.

The fund retains strong quality and value biases relative to the market, which positively contributed over the month as low quality overvalued names significantly underperformed across EM.

*Note: IP USD share class currently registered in LU, AT, CH, DE, DK, ES, FI, FR, UK, IT, NL, NO, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns.

** The portfolio is actively managed with reference to a benchmark. While the product compares its performance against the Index, it does not try to replicate this benchmark and freely selects the securities that it invests in. The deviation with this benchmark can be significant.

RAM European Market Neutral Equity

After a strong start of the year, European markets corrected in March, down 3.9% as US equities dragged global equities significantly lower.

The RAM (Lux) Systematic Funds –European Market Neutral Equity fund (Class-I EUR net of fee*) progressed by 1.05% over the month on the back of strong performance of the long book, which held significantly better than the broad market.

The month’s performance was strong despite short overvalued industrials positions (in Germany mostly) detracting at the beginning of the month after the announcement of the German military spending plan. A number of these shorted names reverted back on the downside, improving the fund’s p&l, after the market frenzy on the names eased.

Longs in the Financials sector, led by some insurance picks, were the largest positive contributor.

Our long picks in Utilities, Energy and Communication Services sectors also finished the month up, while Consumer Staples stocks were the worst detractors over the month.

The statistical arbitrage strategy was close to flat in March, our fundamental market neutral book delivering the month’s returns, in mirror to the first weeks of January, illustrating well the merit of the fund’s strategy diversification.

The fund is net long Healthcare stocks while net short Industrials.

*Note: I EUR share class currently registered in LU, AT, CH, DE, ES, FR, UK, IT, NL, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns.

RAM European Equities

European Equities (MSCI Europe Index) gave back some of their February gains, ending the month down 3.9%, overperforming global equities. Our RAM (Lux) Systematic Funds – European Equities fund (Class-IP EUR net of fee*) was down 2.15% in March, above its benchmark.

The overperformance came from a strong selection in the large and mid cap segments as well as an overweight in the small cap segment. This selection overperformance was mostly concentrated in the Consumer Discretionary, Communication Services and Healthcare (our largest allocation) sectors, in particular in the Major Pharmaceuticals industry. The fund maintains a strong overweight in defensive sectors and a clear underweight in Financials.

The defence trade which drove European overperformance so far in 2025 stabilised and dipped in the last few days of the month (MSCI Europe Capital Goods Index down 2.75% MoM). Our slight underweight and our selection led to a positive contribution over the month in this industry.

Our selection slightly lagged in the UK, our largest allocated country, but overperformed in Germany and Switzerland, the Nordics, France, the Netherlands and Spain.

*Note: IP EUR share class currently registered in LU, AT, CH, DE, DK, ES, FI, FR, IT, NL, UK, NO, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns.

**The portfolio is actively managed using a benchmark. Although the product compares its performance to that of the MSCI Daily Net TR Europe Euro, it does not seek to replicate this benchmark and is free to choose the securities in which it invests. The difference with this benchmark may be significant.

RAM Stable Climate Global Equities

RAM (Lux) Systematic Funds - Stable Climate Global Equities Fund (hereinafter the ‘Fund’) (Class-PI USD net of fee*) declined 1.86% in March. Persistent inflation and robust consumer spending led investors to dial back expectations of near-term Fed rate cuts, while renewed uncertainty around Trump’s proposed tariffs further weighed on market sentiment. As in February, the High Dividend Yield and Low Volatility factors were key drivers of market returns, while Growth stocks continued to underperform significantly. Most sectors posted negative returns globally. The strategy identified strong opportunities in Utilities, Communication Services and Financials, though mid- and small-cap allocations (approximately 15% of AUM) lagged large caps. Regionally, the European and Asia Pacific books ended the month positively (up 1.1% and 0.7%, respectively), while the U.S. allocation fell more than 3%. In its latest rebalancing, the strategy increased exposure to IT while reducing allocations to Financials and Consumer Staples.

*Note: PI USD share class currently registered in LU, AT, BE, FI, UK, NO, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns.

RAM Global Equity Income

RAM (Lux) Global Equity Income Fund (hereinafter the ‘Fund’) (Class-IP USD net of fee*) declined 0.62% in March, underperforming its benchmark, the MSCI World High Dividend Yield Index (-0.23%). In contrast, the MSCI World Index fell 4.45%. Persistent inflation and robust consumer spending led investors to temper expectations of near-term Fed rate cuts, while renewed uncertainty around Trump’s proposed tariffs further dampened market sentiment. This environment strongly favored low-volatility stocks and penalised growth-oriented names. The High Dividend Yield factor outperformed significantly, with the top quintile beating the broader market by over 3%. The share buybacks factor also delivered positive returns, though more modestly (+1.3%). Mid and small cap stocks lagged large caps, though this was partially offset by positive stock selection. Geographically, the U.S. allocation was the primary detractor, while Europe and Asia outperformed. Most sectors ended the month in negative territory, except for Energy and Utilities—a headwind for the fund given its underweight positioning. Conversely, Healthcare, Consumer Discretionary and Communication Services contributed positively due to strong stock selection. In its latest rebalancing, the fund trimmed exposure to Consumer Discretionary and Communication Services while adding to IT and Industrials.

*Note: IP USD share class currently registered in LU, AT, CH, DE, DK, ES, FI, FR, IT, NL, NO, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns.

RAM Global Market Neutral Equity

The RAM (Lux) Global Market Neutral Equity Fund (Class-PI USD net of fee*) delivered a 3.11% return in March, while global equity markets declined over 4%. The positive performance occurred against a challenging macroeconomic backdrop where persistent inflation and robust consumer spending prompted investors to reduce expectations of near-term Fed rate cuts, while renewed uncertainty surrounding potential Trump tariffs added further pressure to market sentiment. Performance was broad-based, with both the low-frequency and mid-frequency engines contributing evenly to results. Market conditions continued to favour defensive positioning, with High Dividend Yield and Low Volatility factors driving returns while Growth stocks substantially underperformed. This environment particularly benefitted our long-side low risk books, which generated positive absolute returns. On the contrary our growth momentum strategies underperformed. On the short side, our momentum strategies contributed positively to the overall performance. The Fund's latest rebalancing saw several strategic adjustments: maintaining a net long position in IT while increasing exposure to Industrials and establishing a long position in Communication Services after previously being short. Conversely, the strategy reversed its stance on Consumer Staples, moving from a long to short position.

* Note: PI USD share class currently registered in LU, CH, DE, DK, ES, FI, UK, IT, NO, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns. 

Important Information

Important Information: The sub-funds mentioned above are Sub-Funds of RAM (Lux) Systematic 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). Mediobanca Management Company S.A. 2 Boulevard de la Foire 1528, Luxembourg, Grand Duchy of Luxembourg is the Management Company.

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