Commentaries

14 November 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 returned -7.96%* (Ip USD class - net of fees), underperforming the MSCI World High DY TRN index which returned -3.38% over the month. The Fund continues to suffer from its underweighting of the U.S. and over-allocation to Asia which impinged upon returns. This continues to be the main theme in 2018 so far, where our Fund has also been punished for its all-cap and diversified allocation approach. On a regional basis, and despite a mid-month reduction by our models, our Asian exposure detracted as Europe and North America names outperformed. Country-wise, aside from Asian names, we suffered from our underweighted to the U.S. (c.14% below the benchmark). Here, loses where particularly evident within the two consumer sectors. On the positive side, our European regional model performed admirably, with Belgium and German names contributing. Sector-wise over the month Consumer Staples, Financials and Materials where the chief detractors, the former sector owing to an injudicious stock selection effect and a significant relative underweight. Our most positive sector was Energy, where our underweight proved beneficial. We remain confident in our current approach, particularly looking at the Fund’s strong fundamentals vs world indices. Naturally our models began to reduce their overweight to Asia, with HK and Japan being cut to closer in-line with the benchmark, while Sweden was also trimmed. These moves came at the expense of a significant increase to the U.S. and the UK. At a sector level we saw Energy and Consumer Staples exposure increase, while our IT and Materials exposure was reduced.

*Sources : RAM Active Investments.