Commentaries

9 January 2019

Thomas de Saint-Seine

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 mirrored its benchmark, posting -5.56%* (Ip-EUR class – net of fees) vs -5.53% for the MSCI Europe TRN. Fear sent European equity markets tumbling in December as continued uncertainty emanating from both geopolitical risk and policymakers spread to investors. European investors faced inconclusive Brexit negotiations which dominated the political horizon, along with violent protests in France and the ebbing political authority of Ms. Merkel’s Germany. Our Fund’s diversified approach enabled us to remain in-line with the market, with strong positive contribution from our Defensive engine (the only significant outperformer over the month), offsetting the negative impact of our all-cap bias; small caps under-performing again significantly in December. From a sector perspective, we witnessed the strongest detractors in both Materials and Energy names.  Within the former, UK and French names detracted heavily. It was a similar story within Energy, where the sector struggled amid falling commodity prices, with gas and oil producers in Netherlands and Norway weighing. On the positive side, our Utilities and Communication Services picks contributed nicely, offsetting these losses. Country-wise, stock selection in and an overweight to Sweden proved highly beneficial, as did prodigious stock selection in Belgium names. Conversely, a negative allocation effect in both France (underweight) and Norway (overweight) detracted, as did a weak stock selection effect in the UK.

*Sources : RAM Active Investments