Commentaries

12 March 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*) was up 2.01% in February vs 2.54% for the MSCI Europe TRN€.

After a strong start of the month, global Equities gave some performance back at the end of February as a significant increase of bond yields led to volatility. Momentum progressed very strongly over the month with support of strong market trends in Materials namely, but gave back in the month end, as anticipations of a strong recovery post “re-opening” led to large under-performance of some trending “Stay-at-Home” and Healthcare Covid plays.

While Value was overall close to in-line with the index over the month, it rallied nicely in the month’s end as higher rates favour our strong cash-flow play sin the selection. Low Risk detracted again last month, continuing one of the longest streaks of Low Risk underperformance since we launched the strategies. We would expect low risk stocks to very significantly outperform in the case of more volatile markets.

Over the month, the fund increased its exposure in Sweden and in Germany (now a slight overweight) at the expense of Italy, Switzerland and Finland. In term of sector, the main re-allocation occurred in Information Technology where we increase our overweight at the expense of Consumer Staples.

Source: RAM Active Investments