Fixed Income Monthly Comments - April 2025

Global Bond Total Return

Following liberation day, volatility increased sharply, with S&P 500 down more than 20% from December high, before recovering partially. Overall, Government bonds benefitted, particularly in Europe, with German Bunds the new safe heaven this month. Volatility in US Treasuries has been elevated on the contrary, as some stops were triggered on relative value trades, with also a steep decline in US dollar value. One month into Trump Tariff gamble, growth is negatively impacted, increasing odds of accommodative monetary policies, even if potential higher inflation may slow US Fed pace. It is also likely that deals will be announced in coming weeks, potentially alleviating recession fears. As rates declined, we reduced the USD duration. The traditional portfolio was strongly up. As the curve steepened, we closed the US curve steepener. With US Treasuries cheap against swaps, we increased our position. The contribution of our Long/Short strategies, as well as our FX portfolio, was strongly positive.

At the end of the month, the -RAM (Lux) Tactical Funds – Global Bond Total Return Fund’s  (Class B USD) duration stood at 4.85 years and the average credit quality was A+.

For a complete overview of the fund performance, please click on the above-mentioned links in this document.

*The performance is gross of management fees and operational costs (0.60% management fee and 0.40% of operational costs, for a TER of approximately 1%).

** Credit Rating: is a parameter used by banks and lending institutions to determine whether an applicant is deserving of the confidence necessary for the granting of a loan. This parameter makes it possible to measure the risk of consumer default and determine the economic conditions applicable to consumers. The highest rating is indicated by the letters: AAA. This is the indication of highest financial security. This is followed by: AA, A, BBB, BB, etc. The lowest credit rating corresponds to the letter C. This letter identifies a high risk of financial default and is a figure taken into great consideration by each lending institution.

Asia Bond Total Return

On April 2nd, President Trump’s so-called “Liberation Day” triggered trade tensions, as the U.S. imposed a 10% baseline tariff on all nations, with additional reciprocal tariffs based on trade deficits. The subsequent policy reversal on April 9th, introducing a 90-day pause for all but China, failed to ease market volatility, intensifying economic uncertainty. U.S. equities declined, Treasury yields rose, and the U.S. dollar weakened. The IMF also moved to cut its 2025 global growth forecast by 0.5% to 2.8%, with U.S. and China projections lowered to 1.8% and 4.0%, respectively. Despite ongoing U.S.-China tensions, China remains patient, ready to deploy stimulus measures as needed. The deflationary impact of U.S. tariffs gives Asian central banks room to ease policies, with four out of six banks cutting rates last month, excluding Indonesia and Korea. Asian credit markets experienced volatility, with spreads widening and primary issuance slowing. Asia IG spreads increased by 8bps to +99bps, while non-IG spreads narrowed by 27bps to +575bps (JACI). April’s credit issuance totalled USD9.7bn, a 59% decline month-over-month, but year-to-date issuance reached USD62bn, up 45.2% year-over-year. The RAM (Lux) Tactical Funds II - Asia Bond Total Return Fund (Class PI USD net of fees****) posted a monthly loss of 1.24%, reducing its year-to-date gain to 0.49%, lagging the index's 2.26% return. This decline was due to the underweight position in China and underperformance in Indian high-yield assets. In response, the fund raised its investment-grade exposure to 64%, up from 57% the previous month. Given ongoing global market volatility and the lack of clear, consistent policy direction in the U.S., we favor shorter-duration and higher-quality investment-grade assets.

For a complete overview of the fund performance, please click on the above-mentioned links in this document.

*** The fund is managed without reference to a specific benchmark. The Index used is not intended to be a restrictive definition of the investment universe. The composition of the fund's portfolio may differ significantly from that of the benchmark index.

**** All fees and expenses, except subscription and redemption fees, are taken into account.

Important Information

The RAM (Lux) Tactical Funds – Global Bond Total Return is a Sub-Fund of RAM (Lux) Tactical Funds a Luxembourg SICAV with registered office: 14, Boulevard Royal L-2449 Luxembourg, approved by the CSSF and constituting a UCITS (Directive 2009/65/EC).
The RAM (Lux) Tactical Funds II – Asia Bond Total Return is a Sub-Fund of RAM (Lux) Tactical Funds II, a Luxembourg SICAV with registered office: 14, Boulevard Royal L-2449 Luxembourg, approved by the CSSF and constituting a UCITS (Directive 2009/65/EC). 

Please note that the share classes mentioned in this document may not be registered in your country of domicile. 

This marketing document is only provided for information purposes to professional clients, and it does not constitute an offer, investment advice or a solicitation to subscribe shares in any jurisdiction where such an offer or solicitation would not be authorised, or it would be unlawful. In particular, the Fund is not offered for sale in the United States or its territories and possessions, nor to any US Person (citizens or residents of the United States of America).

This document is confidential and is intended only for the use of the person to whom it was delivered; it may not be reproduced or distributed.

There is no guarantee that the holdings shown will be held in the future. The investment described concerns the acquisition of shares in the Sub-Fund and not in a specific underlying asset.

Past performance is not a guide to current or future results. There is no guarantee to get back the full amount invested. The performance data do not take into account fees and expenses charged on subscription and redemption of shares nor any taxes that may be levied. As a subscription fee calculation example, if an investor invests EUR 1000 in a fund with a subscription fee of 5%, the investor will pay to his financial intermediary EUR 50.00 on the investment amount, resulting with a subscribed amount of EUR 950.00 in fund shares. In addition, potential account keeping costs (by investor’s custodian) may reduce the performance. Some shares in the Sub-Fund apply a performance fee. Leverage intensifies the risk of potential increased losses or returns.

The Management Company may decide to terminate the marketing arrangement in place in any given country in accordance with Article 93a of Directive 2009/65/EC.

Changes in exchange rates may cause the NAV per share in the investor's base currency to fluctuate.

Particular attention is paid to the contents of this document but no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof.

Prior to any transaction, clients should check whether it is suited to their personal situation, and analyse the specific risks incurred, especially financial, legal and tax risks, and consult professional advisers if necessary.

Please refer to the Key Information Document and prospectus with special attention to the risk warnings before investing. Global Bond Total Return Fund is classified as art.8 SFDR. Asia Bond Total Return Fund is classified as art.6 SFDR. For further information on ESG, please refer to

https://www.ram-ai.com/en/regulatory-information and the relevant Sub-Fund webpage, section "Sustainability-related disclosures".

The prospectus, constitutive documents and financial reports are available in English and French while IIDs are available in the relevant local languages. These documents can be obtained, free of charge, from the SICAVs’ and Management Company’s head office and www.ram-ai.com, its representative and distributor in Switzerland, RAM Active Investments S.A. and the relevant local representatives in the distribution countries.

A summary of Investors’ rights is available on: https://www.ram-ai.com/en/regulatory-information

Issued in Switzerland by RAM Active Investments S.A. which is authorised and regulated in Switzerland by the Swiss Financial Market Supervisory Authority (FINMA). Issued in the European Union and the EEA by the authorised and regulated Management Company, Mediobanca Management Company S.A. 2 Boulevard de la Foire, 1528, Luxembourg, Grand Duchy of Luxembourg.

The source of the above-mentioned information (except if stated otherwise) is RAM Active Investments and the date of reference is the date of this document.