12 July 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) Global Equities Sustainable Alpha Fund (Class-I USD net of fee*) posted a performance of -2.40% in June, bringing YTD performance to 7.45%.

Over the month of June, lower yields weighed on cyclical value stocks, as the start of QE tapering discussions encouraged a move lower in inflation breakevens, and a pulled back of underlying commodity prices back as China policymakers moved to reduce speculative activities. This triggered an outperformance of Growth over Value, while the economic consensus continues to expect a return of higher yields over the coming months and believe the recent move is more likely to be tactical than persistent. In this challenging environment for fundamentally-driven stock picking – which favored stocks mentioned on WallStreetBets, non-profitable technology companies and long duration equities – most of our engines had neutral to negative contributions to performance, on both the Long and Short sides. The fund remains net long on Financials (notably in South Korea, country where the Fund has a net long exposure overall), Materials and Consumer Staples, and net short on Health Care (mainly through biotechnology companies in Korea and China).

Source: RAM Active Investments.