Commentaries

13 November 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 performance of -4.33% in a down market -5.01% for the MSCI Europe TRN€ Index over the month, bringing the outperformance over October to +0.68% in October and to +4.38% YTD.

In October, global economies corrected over the month amidst a worsening of the second wave of Covid in developed countries and disappointing Tech results. In this environment, the fund outperformed on the market downside thanks to good selection in the healthcare sector, particularly in Germany and UK. We also benefited from our allocation in Industrials. Country-wise we benefited from our strong selection in Germany and from our underweight in UK.

At a strategy level, our Machine Learning engine was the best performance contributor last month, still well positioned for more volatility in the wake of the COVID crisis. The momentum engine did also outperform during the period and remains with the Low-Risk engine our top 2 best performing engine over the year. Finally, on a market cap perspective, small cap stocks underperformed in the sell-off, our allocation to the segment detracting, but this was offset by strong out-performance of the strategies’ large cap selections.

Over the month, we saw our underweight in France and UK slightly reduce at the expense of Netherlands and Nordic countries where we remain overweight. At a sector level, we reduced our overweight in IT and Communication Services in favor of the Consumer and Healthcare sectors.

*Source: RAM Active Investments