13 November 2020

Emmanuel Hauptmann

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

The RAM (Lux) Systematic Funds - Emerging Markets Equities Fund (Class-IP USD net of fee*) posted a performance of -1.36% in an up market 2.06% for the MSCI Emerging Markets TRN$ Index over the month.

In October, Emerging Markets Equities proved resilient in a month of correction in developed markets amidst a worsening of the second wave of Covid and disappointing Tech results in Europe and the US, not to mention uncertainties surrounding the US election and the potential explosive situation that could result from it. The fund had a good selection across most countries that was offset by a lag on our Chinese stock selection, the Chinese market being surprisingly strong last month.

At a strategy level, our Machine Learning engine was the month’s best performer across books (the strategy being the best performing engine YTD), while our Low Risk engines detracted in the EM market upside. Across engines, we continue to see attractive opportunities in all smaller caps, despite Small and Mid-Cap under-performance over the month, contributing to a lag of our All-Cap selection versus large cap indices. But overall, it was offset by out-performance of our Large Cap picks versus the market.

We maintain an underweight Mainland China and Brazilian Equities, and overweight on Taiwanese Equities where we see names with attractive valuation. At a sector level, we particularly increase our underweight in Communication Services, following evidence of pressure in the sector.

Source: RAM Active Investments