Commentaries

17 September 2018

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 returned -0.96%* (Ip-EUR class – net of fees) over the month, outperforming the MSCI Europe TRN by 1.29% in August. From a broad Strategy perspective, it was our GARP/Momentum and Defensive engines which enabled our Fund to outperform the index. Our Defensive engines performed superbly during the market’s downturn; proving incredibly resilient as the market slid. Elsewhere our Value engines struggled amid a market heavily focused on Brexit negotiations and, to a lesser extent, Turkey’s problems. Our outperformance over the month was due to combination of a prudent allocation effect, coupled with a strong selection effect, only our negative currency effect detracted. From a country perspective, the UK, Spain and France were all strong contributors. Within the UK, it was our relative overweight combined with judicious stock selection (particularly in Financials and Consumer Staples names) that helped boost returns here. Spanish Financials suffered from their exposure to the Turkey crisis, our significant underweight here also boosted returns.  Sector-wise, we saw strong positive contributions from our Financials and IT picks. Elsewhere, our Health Care stock selection was also incredibly strong, but eroded by an unfortunate detrimental currency effect. Allocation changes over the period include an increase in our absolute weighting to France, Sweden and the UK, at the expense of Italy and Germany. Moves at the sector level include a reduction in our Materials and Consumer Discretionary allocation, while Industrials and Health Care saw their exposures increased.

*Sources : RAM Active Investments