Commentaries

14 December 2018

Thomas de Saint-Seine

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 0.18%* (Ip USD class - net of fees), underperforming the MSCI World High DY TRN index which returned 2.53% over the month. The month was characterised by the continued dominance of our Fund’s U.S. underweight, which was our single-largest detractor at the country level. This month, our significant underweight to U.S. Health Care names (the best-performing sector) detracted markedly. The sector got a bump early in the month following the U.S. mid-term election results, and later in the month owing to positive rhetoric from the Fed. Elsewhere UK names also detracted, with our pics within Consumer Discretionary names hurting. On the positive side, our European regional model performed admirably, with German names contributing in terms of both allocation and selection. From a sector perspective the Health Care sector was our primary detractor. Despite the increase in volatility and subsequent underperformance, we remain confident in ability to outperform our benchmark over the long-term given our current positioning.

Our models moved closer to in-line with its benchmark for the U.S., while Australia and Canada saw the exposure increased. Conversely, the UK saw its exposure almost cut in half, while South Korea was also aggressively cut. At a sector level we saw Financials and Energy exposure increase, while our Utilities and Consumer Discretionary exposure was reduced.

*Sources : RAM Active Investments.