Systematic Equities Monthly Comments - November 2024

RAM Emerging Markets Equities

Emerging Markets declined in November, following a weak October. In this context, the RAM (Lux) Systematic Funds - Emerging Markets fund’s (hereinafter ‘the Fund’) (Class-IP USD net of fee*) significantly outperformed, falling 1.91% compared to a 3.59% drop in the MSCI EM index. Value picks were the largest contributors to relative performance, followed by the Defensive and Style-agnostic books, while Momentum names performed in line with the benchmark.

The strategy benefited from strong selection effects across sectors, particularly in IT and Communication Services, and across market capitalization segments. Korean selections drove the fund’s outperformance, supported by strong picks, while China and Hong Kong also delivered solid results. Conversely, the rebound in Indian markets, after a period of underperformance, weighed on the fund due to its underweight position.

In the latest rebalancing, the strategy continues to reduce exposure to China in favor of increased allocations to Taiwan and Hungary. South Korea allocation is also being reduced. 

*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

European equity markets posted moderate gains in November, rising about 1%, trailing the rally in US equities, which were bolstered by the US elections and ended the month up over 6%.

The RAM (Lux) Systematic Funds –European Market Neutral Equity fund’s (Class-I EUR net of fee*) delivered flat performance in November. Momentum and defensive inputs contributed positively amid extended trends, while value and shorter-term mean reversion inputs detracted.

Top contributors were short positions in consumer discretionary names (luxury, consumer durables, and apparel), distillers, and alcohol.

Valuation dispersion remains statistically elevated across sectors and countries, while uncertainties persist regarding French budget negotiations, layoffs in Germany, and potential tariffs in 2025.

The Fund is net short on luxury and renewable energy names, net short on Switzerland, and significantly reduced its net short on France by month-end.

It is net long Healthcare and holds significant gross exposure to Industrials, a sector with notable valuation dispersion.

*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 heavily fluctuated in November, with French budget negociations and layoff announcements in Germany. The US presidential election led to additional volatility as potential tariffs could be announced in 2025, as well as a weaker Euro. The RAM (Lux) Systematic Funds – European Equities fund’s (Class-IP EUR net of fee*) ended the month up 53 bps. Its benchmark, the MSCI Europe, was up 1.08%.

Our momentum and defensive books overperformed, while our Value and Machine Learning books underperformed the benchmark. The fund further reduced its French allocation, and is now strongly underweighted, which positively contributed to the fund's relative performance. Our German and UK selections lagged, while Italy, Finland and Sweden positively contributed to the fund's relative performance.

Our Industrials selection, our largest allocated sector, lagged together with our Communication services picks. Our defensive allocation in Health Care and Consumer staples overperformed.

Our picks in the Large and Mid-Cap. segments underperformed over the month, while our Small Cap. selection overperformed.

*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

The RAM (Lux) Systematic Funds - Stable Climate Global Equities Fund’s (hereinafter the ‘Fund’) (Class-PI USD net of fee*) rose 2.91% in November.

Global developed equity markets gained around 4.5%, driven by U.S. equities, which surged over 6% following the elections.

Most sectors finished the month in positive territory. The fund's largest sector allocation, Health Care, detracted from performance despite strong selection, as the sector lagged broader market gains. Utilities, linked to the EU Taxonomy strategy, also underperformed. Small- and mid-cap allocations trailed the large-cap segment.

The U.S. allocation significantly outperformed other regions, while Europe was the main detractor, with a performance gap of nearly 8%.

In the latest rebalancing, the strategy reduced exposure to Information Technology and Communication Services in favor of Industrials, Materials, and Health Care.

*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

The RAM (Lux) Global Equity Income Fund’s (hereinafter the ‘Fund’) (Class-IP USD net of fee*)  gained 4.67% in November, strongly outperforming its benchmark, the MSCI World High Dividend Yield, which rose 1.83%.

Global developed equity markets advanced about 4.5%, with U.S. equities leading the way, rising more than 6% after the elections.

U.S. exposure was the key driver of outperformance, thanks to robust stock selection. France and Switzerland also contributed positively, benefiting from underweight positions. Overweight Financials added value, while strong selection in IT, Energy, and Health Care further supported returns.

The fund's mid- and small-cap allocations were positive contributors, benefiting from both allocation and selection effects.

In the latest rebalancing, the strategy reduced exposure to Information Technology and Consumer Discretionary, reallocating to Health Care and Consumer Staples.

*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

Global developed equity markets posted gains in November of roughly 4.5%, driven by US equities, which were bolstered following the US elections and finished the month up more than 6%.

The RAM (Lux) Global Market Neutral Equity Fund (Class-PI USD net of fee*)  was up close to 2% despite its beta-neutrality, thanks to good contributions from most low-frequency engines (outside of defensive ones), on both sides of the book.

In particular, positive net selection effects were seen in IT (US software-company long picks), Consumer Discretionary (including several consumer durables and apparel short picks) and Financials (including long financial software and services companies), where the Fund also retains a net long bias which contributed positively in November.

Higher-frequency mean reversion engines underperformed in this context of extended trends.

The sectors where the Fund has the largest gross exposure are Industrials and IT, where the dispersion of valuations remains statistically elevated.

* 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.

The information and analyses contained in this document are based on sources deemed to be reliable. However, RAM Active Investments S.A. cannot guarantee that said information and analyses are up-to-date, accurate or exhaustive, and accepts no liability for any loss or damage that may result from their use. All information and assessments are subject to change without notice.
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Authority. Issued in Switzerland by RAM Active Investments S.A. (Rue du Rhône 8 CH-1204 Geneva) 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 SA, 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 SA and the date of reference is the date of this document, end of the previous month.