Commentaries

13 February 2019

Thomas de Saint-Seine

RAM Active Investments RAM (Lux) Systematic Funds - Emerging Markets Core Equities Maxime Botti Partner & Senior Systematic Equity Fund Manage

 

The RAM (Lux) Systematic Funds – Emerging Markets Core Equities Fund returned +9.00%* (Ip USD Class – net of fees) in January, outperforming the MSCI Emerging Markets TRN by 14bps. The region witnessed the continuation of a tremendous rally over the last six weeks, as previous global issues abated, and investors embraced the Federal Reserve’s patient stance and dovish tones. These types of environments are typically unaccommodative to alpha generation on a fundamental basis; with rebounds of this nature highly unselective. Our mid/large cap approach to investing in the region proved profitable, with our engines outperforming their large and mid-cap segments over the month. At the country level, we witnessed strong positive contributions from our selection and underweight to Brazilian names, with Materials and Utilities names combining nicely. Elsewhere, stock picking in India and Taiwan also contributed, while our underweight to the former was extremely positive. Conversely, losses emanated from both China and South Korea. On a sector basis, both Energy and Utilities picks contributed strongly, while we felt losses within the Communication Services sector.

 *Sources : RAM Active Investments