Commentaries

17 September 2018

Emmanuel Hauptmann

RAM Active Investments  RAM (Lux) Systematic Funds, Global Shareholder Yield Equities Fund,Maxime Botti Partner & Senior Systematic Equity Fund Manager

The RAM (Lux) Systematic Funds - Global Shareholder Yield Equities Fund fell by -0.02%* (Ip USD class - net of fees), narrowly underperforming the MSCI World High DY TRN index by 9bps over the month. A difficult three month period for our Fund was again highlighted by the same issue; our model’s underweight to North America in favour of Asia. Asian equities have come under increasing pressure from the current trade war with the US, while their US counterparts have enjoyed a relatively strong period of growth. Aside from our negative allocation effect (primarily contained in the US), our stock selection effect has certainly boosted returns. Over the month we also witnessed strong positive contributions from the Switzerland and France. Elsewhere, negative contributors include our China allocation, while a weak stock selection effect in the UK was more than offset by a helpful currency and allocation effect (underweight). From a sector perspective both Consumer sectors (Discretionary and Staples) were the relative winners, while our stock picking in Energy also contributed nicely. Our detractors at the sector level were mainly in Health Care and IT names. In terms of allocation moves over the period, our models have maintained their significant relative underweighting to the US (-21.7%), primarily owing to the difference of valuations between US stocks and the rest of the world. Elsewhere we saw decreases in our Canada and UK exposure at the expense of Japan and Australia names. There were also several key changes at the sector level, with our Industrials and Telcos exposure increased at the expense of Energy, which saw its total allocation halved.

*Sources : RAM Active Investments.