Systematic Equities Monthly Comments - April 2025

RAM Emerging Markets Equities

Emerging Markets outperformed global developed markets again in April, ending the month up 1.31%, while the MSCI World gained 0.89%. This brings year-to-date performance for Emerging Markets to 4.28%, compared to -0.92% for Developed Markets.

The RAM (Lux) Systematic Funds - Emerging Markets fund’s (hereinafter ‘the Fund’) (Class-IP USD net of fee*) outperformed its benchmark, returning 1.92% for the month. Markets saw significant volatility in April due to broader-than-expected US tariffs, which weighed on stocks, bonds, and currencies. The VIX spiked to 60—its highest level since the pandemic—before recovering as President Trump softened his approach, pausing reciprocal tariffs and removing some electronic product tariffs. Against this backdrop, Chinese stocks underperformed, benefiting the fund given its underweight position. This underweight is being slightly reduced in the latest rebalancing.

The strategies delivered strong selection effects in Europe and Latin America (particularly Brazil). Conversely, the Taiwan allocation underperformed, partly due to an underweight in TSMC, which also hurt our IT allocation. Most other sector allocations performed well relative to the benchmark, particularly Communication Services and Consumer Discretionary. Much of the outperformance came from small- and mid-cap allocations. 

*Note: IP USD share class currently registered in LU, AT, CH, DE, DK, ES, FI, FR, UK, IT, NL, NO, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns.

** The portfolio is actively managed with reference to a benchmark. While the product compares its performance against the Index, it does not try to replicate this benchmark and freely selects the securities that it invests in. The deviation with this benchmark can be significant.

RAM European Market Neutral Equity

In April, the RAM (Lux) Systematic Funds –European Market Neutral Equity fund’s (Class-I EUR net of fee*) gained 2.26 %, lifting its year to date return to roughly 6.03 %.

European markets were highly volatile from the tariff announcement on April 2nd until the pause signalled on April 8th. They ended the month slightly down, after rebounding from an intra month drop greater than 10 %.

The short term statistical arbitrage engine led performance, profiting on both the long and short sides, with Industrials the biggest contributor amid tariff  and defence related dislocations.

The low frequency strategy kept adding incremental gains—less than last year’s standout but complementary to the mid-frequency book.

Within the low frequency strategy, winners were mainly long positions in Industrials, where valuation dispersion remains high, and in Financials, especially insurers and selected Italian and Swedish banks.

Momentum and defensive inputs have contributed strongly to the Fund’s performance in April and year-to-date.

The fund remains net long Healthcare and Financials, and net short in Materials.

*Note: I EUR share class currently registered in LU, AT, CH, DE, ES, FR, UK, IT, NL, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns.

RAM European Equities

European equities ended the month slightly down (MSCI Europe Index -0.68%), overperforming global equities in Euro terms. The RAM (Lux) Systematic Funds – European Equities fund’s (Class-IP EUR net of fee*) outperformed, ending the month up 2.1%. April was volatile across the board, with the first half of the month hit by the US tariffs, and the second half saw a recovery as a pause was announced. The Q1 results released towards the month's end bolstered the fund's relative performance, especially in Industrials.

The fund's overperformance came from its strong selection, in Industrials, Consumer Discretionary and Health Care. The fund's overweight in Utilities and Communication Services also positively contributed.

In terms of countries attribution, the fund's selection in the UK, Germany (the two largest country allocations), the Netherlands and Austria strongly performed. The fund increased its German and French allocations while reducing its exposure to the Nordic countries.

Most of the fund's selection overperformance came from the Large and Mid-Cap. segments, with the overweight in the latter making a slightly positive contribution. Our Small cap. overweight also positively contributed to the fund's relative performance

*Note: IP EUR share class currently registered in LU, AT, CH, DE, DK, ES, FI, FR, IT, NL, UK, NO, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns.

**The portfolio is actively managed using a benchmark. Although the product compares its performance to that of the MSCI Daily Net TR Europe Euro, it does not seek to replicate this benchmark and is free to choose the securities in which it invests. The difference with this benchmark may be significant.

RAM Stable Climate Global Equities

The RAM (Lux) Systematic Funds - Stable Climate Global Equities Fund’s (hereinafter the ‘Fund’) (Class-PI USD net of fee*) gained 0.92% in April. Markets saw significant volatility during the month, driven by broader-than-expected US tariffs, which weighed on stocks, bonds, and currencies. The VIX surged to 60—its highest level since the pandemic—before retreating as President Trump moderated his stance, pausing reciprocal tariffs and rolling back tariffs on some electronic products. After several weeks of underperformance, Growth stocks led the market, while Value stocks lagged. The strategy posted solid returns in Consumer Staples, Financials, and Utilities, but Healthcare proved more challenging. European allocations continued to outperform, followed by Asia Pacific, while North America saw a slight decline. Mid- and Small-cap holdings (approximately 15% of AUM) underperformed large caps. In its latest rebalancing, the strategy increased exposure to Financials while reducing allocations to Consumer Staples and Consumer Discretionary.

*Note: PI USD share class currently registered in LU, AT, BE, FI, UK, NO, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns.

RAM Global Equity Income

The RAM (Lux) Global Equity Income Fund’s (hereinafter the ‘Fund’) (Class-IP USD net of fee*) gained 0.55% in April, outperforming its benchmark, the MSCI World High Dividend Yield Index, which declined 0.97%. In contrast, the MSCI World Index rose 0.89%. After several weeks of underperformance, growth stocks led the market, while value and high-income stocks lagged. Both the high-dividend-yield factor and the share buyback factor underperformed significantly, with the top quintile trailing the broader market by approximately 1.5%. Most of the outperformance was driven by large-cap stock selection. Geographically, the U.S. and European allocations delivered strong results, whereas Asia underperformed, particularly Japan. The strategy benefited from an underweight in Energy and an overweight in Financials, as well as strong stock selection in Healthcare and Industrials. In its latest rebalancing, the fund reduced exposure to Healthcare and Communication Services while increasing allocations to Financials and Consumer Discretionary.

*Note: IP USD share class currently registered in LU, AT, CH, DE, DK, ES, FI, FR, IT, NL, NO, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns.

RAM Global Market Neutral Equity

In April, the RAM (Lux) Global Market Neutral Equity Fund (Class-PI USD net of fee*) gained 1.87 %, lifting its year to date return to roughly 7.33 %. Markets were highly volatile from the tariff announcement on April 2nd until the pause signalled on April 8th. The MSCI World finished April +0.89 %, rebounding from an intra month drawdown greater than 10 %. The Fund stayed resilient, with alpha coming from every engine, the long side of the book contributing the most. Longs profited from an Energy underweight (oil prices corrected below 60 USD) and quality picks in Industrials and IT. Low frequency engines outperformed their mid frequency counterparts. The portfolio remains net long IT and Healthcare and net short Energy and Utilities.

* Note: PI USD share class currently registered in LU, CH, DE, DK, ES, FI, UK, IT, NO, SE, SG (foreign restricted recognised scheme). Please click on the above link to access the fund factsheet and obtain a global overview of performance since inception. Past performance is not a reliable indicator of future returns. 

Important Information

Important Information: The sub-funds mentioned above are Sub-Funds 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). Mediobanca Management Company S.A. 2 Boulevard de la Foire 1528, Luxembourg, Grand Duchy of Luxembourg is the Management Company.

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