Commentaries

Commentaries

8 February 2024

Multi-Asset Monthly Comment -January 2024

RAM Global Multi-Asset

The new year began on a positive note, extending the rally in risk assets that started in November 2023. Most asset classes performed well, driven by some macroeconomic data suggesting a soft-landing scenario. Developed Markets’ central banks pushed back on rate cut expectations in March, but the market continues to believe that the disinflationary process is well in place, with the narrative shifting from inflation to growth outlook. Global equities posted a positive performance, reinforced by the same trend, especially the AI theme, that was in place for the most part of last year. The deflation risk in China pushed investors to remain skittish about the Equity market, to an extent that extreme divergence is observed between valuation and fundamentals of a number of sound balance sheet companies with high single-digit growth prospects. On the Fixed Income side, government bond yields grinded higher, negatively impacting higher duration bonds, while credit spread-tilted indices managed to print a positive performance. The Equity implied remained at the cycle low, indicating that a low-risk environment would prevail.

The Diversified Equity book outperformed broader indices, while Single Name Equities benefitted from US Communication Services exposures but suffered losses in EM Tech names. The Bond bucket, which is biased towards government bonds and corporate IG, detracted from performance due to the negative interest rate effect mainly. Liquid Alternative exposures saw a strong contribution stemming from Equity Market Neutral strategies. CTA and Macro Systematic strategies also generated positive returns over the month. The subdued Equity volatility environment continued to weigh on risk mitigation strategies. However, the positive point resides in the fact that the cost of hedging against tail events has substantially diminished.
 

 

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Important Information
RAM (Lux) Systematic Funds -Global Multi-Asset Fund is a Sub-Fund of RAM (Lux) Systematic 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).

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).
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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 accountfees 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.
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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, RAM Active Investments (Europe) S.A., 51 av. John F. Kennedy L-1855 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.
 

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