Systematic Equities Monthly Comments - July 2025

RAM Emerging Markets Equities

In July, Emerging Markets (EM) equities went up alongside global equities, positive earnings and GDP dynamics in the US, helping maintain the global markets’ upside.

After reaching a new 2025 high, EM stocks were held back by the rebound of the US dollar in the last week of the month.

The RAM (Lux) Systematic Funds - Emerging Markets fund (hereinafter ‘the Fund’) (Class-IP USD net of fee*) lagged the index slightly over the month, as low-quality stocks outperformed. It still outperforms the index on a year-to-date basis in a challenging environment for stock selection in EM.

At the country level, our underweight position in the IT sector in China, Taiwan and South Korea was a drag on relative performance.

Conversely, our underweight in the underperforming Indian market contributed positively.

Our Brazilian stock selection, the best contributor year-to-date, lagged following the announcement of surprisingly aggressive US tariffs on the country.

At the style level, in a general climate of speculation that favoured low-quality stocks, our Value selection was the best performance driver. In contrast, our Low Risk and Growth/Momentum picks trailed.

The fund maintains a relatively defensive posture, with Consumer Staples and Health Care remaining our largest overweight sectors.

During the month, we initiated new positions in China, neutralising the country’s underweight, and added to India.

The strategy is overweight in Thailand and Hong Kong, while being underweight in India and Taiwan.

* 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 a strong ‘risk-on’ month for European Equities, the market continued its late June rotation into Low Quality stocks.

This rotation negatively impacted the RAM (Lux) Systematic Funds –European Market Neutral Equity fund (Class-I EUR net of fee*) or the first three weeks. Performance recovered in the final week, which helped mitigate the month's overall losses. 

Long positions in the Industrials sector and short positions in IT contributed positively.

The largest detractors were short positions in Consumer Staples and internet retail, which reversed sharply. Long positions in the Materials sector were also negative performers.

From a style perspective, our most positive contributors came from momentum-driven strategies, while short positions in Low Quality stocks detracted the most.

Our statistical arbitrage strategy detracted over the month and is now around in-line in performance with the systematic fundamental book since the beginning of the year.

* 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.

** 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 Equities

European Equities were volatile in July, with positive Q2 results coming out as well as a newly found trade deal between the EU and the US and contrasted GDP releases. In this context, our RAM (Lux) Systematic Funds – European Equities fund (Class I EUR net of fee*) ended the month up 0.29%, underperforming its benchmark (the MSCI Europe Total Return Index), up 0.73%.

The fund lagged in the UK and France, both through a selection effect while the Netherlands, Norway and Denmark held well. Our German selection strongly performed, as Germany remains our second-largest allocated country. The fund increased its position in the UK (largest allocation) and remained stable in France and Switzerland, respectively the 3rd and 4th largest allocated countries.

Financials and Communication Services detracted, penalised by an allocation effect, the fund being strongly underweight in the former and overweight in the latter. Information Technology performed well thanks to a strong selection effect.

The fund's selection lagged in the Large and Mid Cap segments, but its Mid and Small Cap overweight positively contributed.

*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 against the Index, 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 Global Equity Low Carbon

The RAM (Lux) Systematic Funds – Global Equity Low Carbon Fund (hereinafter the ‘Fund’) (Class PI USD net of fee*) declined 2.82% in July, in an environment driven by tariff deals and announcements between the US and its trade partners. July also saw a strong performance in the Growth factor, while Low Volatility and Quality detracted, a continuation of the trend we saw in June.

The fund's picks in Health Care and Information Technology declined, in particular in Packaged Software and Internet Software/Services. Industrials, Communication Services and Financials also detracted. Furthermore, our Health Care picks took a hit following Trump's letter to pharma companies near the end of the month.

Most of the fund's negative performance was concentrated in the United States and, to a lesser extent, in Switzerland (the second largest allocated country) and Germany. Our Asian selection performed well, with our Australian and Japanese picks performing well.

Our Large Cap allocation detracted, while our Mid Cap picks also penalised the fund's performance in July as the segment lagged its Large counterpart in the global equities universe.

*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.

**The portfolio is actively managed using a benchmark. Although the product compares its performance against the Index, 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 Global Equity Income

The RAM (Lux) Global Equity Income Fund (hereinafter the ‘Fund’) (Class IP USD net of fee*) declined 2.34% in July, underperforming its benchmark, the MSCI World High Dividend Yield Index, down 0.72%. The High Income investment factors showed a poor performance over the month, lagging the Momentum and Growth factors. In this context, most of the fund's underperformance was concentrated in the US and the Large Cap segment.

The fund lagged in Health Care and Financials, driven by a negative selection effect. The fund's overweight in Financials, our largest allocated sector, partially offset the negative impact of the sector on the fund's relative performance. Consumer Staples and Information Technology positively contributed, thanks to strong picks.

Our US selection lagged, while our European and Asian picks overperformed. Japan, Italy and Spain in particular saw a positive selection effect.

Most of the fund's negative relative performance was concentrated in the Large Cap segment, while the Mid and Small Cap segments did not have a noticeable impact on the fund's performance compared to its benchmark.

*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.

**The portfolio is actively managed using a benchmark. Although the product compares its performance against the Index, 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 Global Market Neutral Equity

In a strong ‘risk-on’ month for global Equities, the market continued its late June rotation into Low Quality stocks.

The rotation was the most painful in the US, where speculative high-beta stocks outperformed the rest of the market significantly.

This rotation negatively impacted the RAM (Lux) Global Market Neutral Equity Fund (Class PI USD net of fee*) for the first three weeks. Performance recovered in the final week, which helped mitigate the month's overall losses.

Performance was supported by long positions in the Consumer Discretionary sector and by exposure to Asia, particularly Hong Kong and Japan. Conversely, long positions in the US IT sector detracted, while short positions in US Energy, Industrials, and Materials underperformed as these sectors experienced a sharp rebound.

From a style perspective, short positions in Low Quality stocks detracted the most.

The statistical arbitrage strategy detracted over the month while the equity volatility strategy was a positive contributor.

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