Commentaries

10 May 2021

Valentin Betrix

RAM Active Investments RAM (Lux) Systematic Funds - Long/Short Emerging Markets Equities funds Maxime Botti Partner & Senior Systematic Equity Fund Manager

The RAM (Lux) Systematic Funds - Global Equities Sustainable Alpha Fund (Class-I USD net of fee*) posted a performance of 1.54% in April.

Most equity markets were in risk-on mode globally, while commodity prices and European bond yields moved to fresh highs, and US long-term rates and inflation breakevens remained close to their March top. This continued to provide a favorable backdrop for our fundamentally-driven strategies. Value and Momentum engines continued to deliver alpha on both sides of the book, while our Low Risk engines slightly detracted performance. Our Momentum engines benefitted from the absence of the largest mega-cap growth names present in the MSCI Emerging Markets Index, and interestingly, we observed positive selection effects across the full market cap spectrum, including in our large cap selection. The fund remains net short on South Korea (mainly on Healthcare), and net long on Taiwan, which was the top performance contributor, with several good picks in the Information Technology and Materials sectors. Over the month, we reduced notably our net short exposure to South Korea, and our net long exposure to Taiwan and Brazil.

Source: RAM Active Investments.