Commentaries

12 October 2020

Emmanuel Hauptmann

RAM Active Investments  RAM (Lux) Systematic Funds - European Equities Maxime Botti Partner & Senior Systematic Equity Fund Manager

The RAM (Lux) Systematic Funds - European Equities Fund (Class-IP EUR net of fee*) posted a positive performance of 0.72% in a down market -1.41% for the MSCI Europe TRN€ Index over the month, bringing the outperformance over the quarter to +7.92% (8.02% vs 0.10%).

Over the month, the fund outperformed on the market downside, as the IT selection proved resilient in the wake of more COVID worries in the markets. The September fund performance furthermore confirms the good positioning of the different engines over the quarter. This is highlighted by our Low Risk and Momentum engines which were well positioned to benefit from more volatility thanks to wise stock selection. Logitech can serve as an example here, illustrating how our models were able to identify companies with attractive earnings trends and price profiles. The stock was present in both the Momentum and Low Risk engines. Additionally, the dispersion observed over the quarter in the small cap segment contributed to the fund’s outperformance. Finally, we see the first signs of a positive reversal of some of our Value-biased engines, i.e. the Machine Learning strategy coming back very nicely at the end of the month with very attractively valued names.

Over the month, we observed a decrease in our IT overweight, as well as Financials underweight positions. We increased its allocation to the Consumer sectors.

*Source: RAM Active Investments