Commentaries

14 January 2021

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*) finished the year up 15.80%.

Risk-on has prevailed in December, leaving our Low Risk and Machine Learning engines behind, while we still see very large dispersion of valuation across Emerging Markets. Emerging Markets finished the year up 18.31% (MSCI EM TR Net) in an extremely volatile and complex year to navigate. The RAM (Lux) Emerging Markets Equities Fund finished the year up , negatively impacted by its Value bias as 2020 saw in EM the continuation of the Growth-driven market inflows, reinforcing the valuation dispersion in the market. The Fund’s strategies still identify a lot of opportunities in Taiwan and Hong Kong, while maintaining a strong underweight in Mainland China companies, which was the main performance detractor over the year. In recent rebalancings, we also saw an increase of our Brazilian exposure, narrowing the underweight exposure to this country. Our strategies are currently increasing the exposure to Financials, building up an overweight position on the sector, while reducing Consumer Discretionary and Communication Services picks.

Source: RAM Active Investments