Commentaries

13 April 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 4.12% in March in a down market -1.51% for the MSCI Emerging Markets TRN$.

The fund had one of its best months since launch in March in terms of relative performance. The higher US yields have led to a strong rotation into undervalued EM companies while putting pressure on overvalued EM Growth stocks, leading MSCI EM in negative territory on the month. All our alpha engines performed strongly over the month, our Value engines performing the best, with positive stock selection effects across market cap segments.

The fund benefited from an underweight to Chinese interactive media growth plays, while performing strongly on undervalued Electronics picks that currently see strong demand momentum which fit well within both our Value and GARP-Momentum books. The fund remains underweight China while overweight both Taiwan and Hong-Kong. The largest Chinese underweight is in Communication Services and Consumer Discretionary, and the largest overall sector over-weights are Financials, Industrials and Consumer Staples.

Source: RAM Active Investments