Commentaries

10 October 2018

Maxime Botti

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 returned 0.52%* (Ip USD class - net of fees), narrowly underperforming the MSCI World High DY TRN index by 0.46% over the month. The continuation of last month’s thematic difficulties were in play again as our Fund’s structural underweight allocation to North America and instead in favour of Asia continued to hamstring performance. Asian equities continue to suffer from the seemingly ubiquitous trade war with the U.S., while North American names go from strength to strength. Aside from this negative allocation effect (almost entirely contained with the U.S.), our stock selection effect helped assuage losses, generating tangible alpha despite a difficult month for diversified funds like ours. From a selection perspective at a country level the Netherlands and South Korea also detracted.. Elsewhere, the UK and Japan both contributed positively. Within the UK, our underweight to and stock selection in Consumer Staples was largely responsible for the positive contribution here. Sector-wise over the month both Financials and IT were primarily responsible for our relative underperformance. We did, however, witness positive selection effects across both Communication Services and Industrials sectors which helped to stem losses. Our models were busy over the month, with significant reductions across our Netherlands, Hong Kong and Japan allocations which came almost entirely at the expense of the U.S. (now much closer to the index). At a sector level we saw Industrials and Consumer Staples exposure trimmed, while our IT sector exposure almost doubled.

*Sources : RAM Active Investments.