Commentaries

11 September 2020

Emmanuel Hauptmann

RAM Active Investments RAM (Lux) Systematic Funds -Emerging Markets Equities

The RAM (Lux) Systematic Funds - Emerging Markets Equities Fund (Class-PI USD net of fee*) posted a performance of 2.98% vs +2.21% for the MSCI EM TRN$ Index.

Dovish statements by the Fed targeting employment and growth rather than inflation contributed to a boost of Equity markets and supported strong Momentum performance everywhere. In Emerging Markets, we benefited from a strong performance of our Machine Learning engines in August. The strategy contributed positively, helping to outperform the market, with good picks in Hong-Kong and Taiwan that remains the fund largest overweight given attractive undervalued stocks in the country. On a sector basis, the fund benefited from a positive allocation and selection in the Healthcare and Information Technology sectors. This is particularly our China-A share allocation model that found attractive neglected Chinese healthcare companies with good momentum and fundamentals. Finally, because of poor fundamentals and concerning environmental impacts of number companies in the Energy sector, the fund still identifies close to no pick there, the sector remaining a large underweight. At a country level, we see the strategy re-allocating slightly to Malaysia at the expense of China (incl. Hong Kong).

Source: RAM Active Investments