Commentaries

12 October 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 -1.45% vs -1.60% for the MSCI EM TRN$ Index, continuing to outperform the index over the quarter and YTD.

The fund outperformed slightly on the market downside, as the Tech selection of the fund was resilient in the wake of more COVID worries in the markets. Over the quarter as well as over the month, our Machine Learning engine was the month’s best contributor to the performance. In addition to the good performance of our Momentum engines, we note an interesting come back of our value strategy over the last 2 months, were we start to see attractive stock picks in the model. The fund benefited from a strong Consumer Discretionary selection in Hong-Kong and from an underweight to Mainland China and Brazilian Equities. On a Market Cap level, the Mid-Cap selection of the fund was the best performer over the month, while Small/Micro caps corrected the most and remain at compelling relative valuation levels.
Over the month, we increased the exposure in the Materials sector (in Taiwan particularly), where we are now in line with the index. We also maintain our overweight in IT and Industrials.

Source: RAM Active Investments