8 February 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) was up 1.89% in January versus +3.07% for the MSCI Emerging Markets TRN$ Index.
Emerging Markets indices were positive in January, with mega-caps of the index contributing to most of the upside, as Small and Mid-Caps were left behind. The Large cap selection of the fund outperformed Large Caps in the index but the severe lag of Small- and Mid-Caps led our All-Cap fund to lag large cap indices. We still see very large dispersion of valuation across Emerging Markets, particularly in Mid and Small Cap segments as it spread further over the month along apparently more flows towards ETFs/Large-Cap biased funds than to the rest of the market, still neglected by investors. The largest lag was in Taiwan where our Taiwan Semi-Conductor underweight and our selection of Smid caps there detracted. On the other hand, we had positive contribution from our Brazil underweight and good performance of our A-Share stock selection. Our strategies are still increasing exposure to financial stocks, building up an overweight position on the sector, while reducing Consumer Discretionary and IT to slight underweights.

Source: RAM Active Investments