Commentaries

14 January 2021

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*) generated a -1.01% return in 2020, outperforming the Index by 2.31%.

In a context of central bank interventions and vaccine optimism investors expressed appetite for Equities in December, extending the market recovery and helping MSCI Europe TRN€ Index close the year at -3.32%. The fund outperform the index in a roller-coaster year during which the Momentum part of the book was the Fund’s best driver. In December good performance of our Momentum, Value and ML engines helped the Fund to outperform the Index, while our Low Risk engines were a drag on the upside. Best picks were found in Sweden, with stocks selected in the Industrials and Financials sectors contributing the most. The book’s Small and Mid-Cap exposures were positive contributors at the end of the year, with a strong recovery from the March lows for these market segments which are likely to benefit from further dispersion and keep performing well in the recovery. Our models reduced the exposure to Health Care names in recent weeks, while we saw a slight exposure increase to Financials, reducing our underweight to the sector.