Systematic Equities Monthly Comments - June 2025

RAM Emerging Markets Equities

Emerging equities delivered another robust month in June, up 6%, outperforming global developed markets and extending their year-to-date leadership position. Taiwan spearheaded emerging market gains for the second consecutive month, with Taiwan Semiconductor surging alongside global growth-oriented peers. The RAM (Lux) Systematic Funds - Emerging Markets fund (hereinafter ‘the Fund’) (Class-IP USD net of fee*) surrendered some relative performance amid this concentrated market rally, though it maintains a 50bps advantage over the MSCI Daily TR Net Emerging Markets ** year-to-date, posting 15.73% versus 15.27% in USD terms.

Our value selection strategy delivered the strongest monthly contribution, while our low-risk picks lagged during the sharp market advance.

The strategy benefitted from underweights to India and Saudi Arabia, both market laggards, and from astute stock selection in Brazil, which continues as the top contributor to year-to-date outperformance. Chinese technology companies within Communication Services and Consumer Discretionary saw increased allocations during June, as building earnings momentum and enhanced growth prospects drove higher expected returns for these positions. As Chinese exposure expanded, the strategies correspondingly reduced positions in South Korean and Taiwanese technology stocks throughout the period. Thailand maintains the fund's largest overweight position while India remains the most significant underweight, as elevated valuation metrics continue to deter investment in most local name

* 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

The RAM (Lux) Systematic Funds –European Market Neutral Equity fund (Class-I EUR net of fee*) concluded June with a modest negative return of -0.3%, occurring within a sustained risk-on equity environment that saw the MSCI Europe index advance 2.2%**. Market conditions featured notable rotation within momentum factors and periodic short-covering episodes, creating challenging dynamics for the strategy.

Both the main systematic fundamental and the statistical arbitrage books generated flat-to-negative net returns throughout the month. Performance was predominantly pressured by short book positioning. Specifically, semiconductor short positions weighed on returns as the sector experienced significant outperformance. Additional sector-level headwinds emerged from Industrials and Consumer Staples shorts. Conversely, stock selection within Materials and Consumer Discretionary provided meaningful positive contributions.

Net exposure increased across Consumer Discretionary, Industrials, and Information Technology sectors. Simultaneously, exposure was reduced in defensive areas, particularly Health Care and Utilities, alongside Financials. Notwithstanding the challenging environment last month, the fund maintains a year-to-date performance of +7.8%, supported by positive momentum generated in earlier periods, and is well-positioned to potentially deliver strong diversification for new potential bouts of market volatility.

* 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 underperformed their global counterparts in June (in Euro terms), ending the month down, while the Global Developed and Emerging Markets indexes strongly performed. June was marked by a strong momentum reversal in the middle of the month: the RAM (Lux) Systematic Funds – European Equities fund (Class I EUR net of fee*) held well in the context, and steadily outperformed in the second half of the month, ending June up 19 bps, strongly outperforming its benchmark, the MSCI Europe Index (down 1.30%)**.

Our selection in SMIDs was the largest contributor, especially in the mid-cap segment, while our large-cap selection was in line with the benchmark.

In terms of sectors, Consumer Discretionary was the largest contributor, with an outperformance of our selection in all the sub-sectors. The fund also outperformed in defensive sectors, with Health Care, Consumer Staples and Utilities selections holding well over the month.

France, Sweden and Spain selections positively contributed in relative terms, the former being the largest contributor, further helped by an underweight in the country.

*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 Equities Low Carbon

The RAM (Lux) Systematic Funds – Global Equities Low Carbon Fund (hereinafter the ‘Fund’) (Class-PI USD net of fee*) gained 2.20% in June, outperforming its benchmark, the MSCI World High Dividend Yield Index, which rose 1.61%. Despite market participants' concerns about escalation in the Iran-Israel conflict and its potential impact on energy markets, the S&P 500 reached new all-time highs by quarter-end—a remarkable recovery after nearly entering bear market territory in early April. The growth rally that began in the second half of April continued, while low-volatility and high-quality stocks underperformed. The high-dividend-yield factor lagged the broader market, whereas the share buyback factor ended slightly higher. Europe drove the outperformance, supported by strong stock selection, particularly in France and the UK. Asia also contributed positively. The strategy benefitted from robust selection effects in Consumer Discretionary, Financials, and Materials, while Information Technology detracted from performance. Despite a negative allocation effect, mid-cap exposure contributed positively, as did small-cap allocation. In its latest rebalancing, the fund increased exposure to Utilities and decreased allocations to Industrials and Communication Services. 

*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 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*) gained 2.20% in June, outperforming its benchmark, the MSCI World High Dividend Yield Net Index, which rose 1.61%**. Despite market participants' concerns about escalation in the Iran-Israel conflict and its potential impact on energy markets, the S&P 500 reached new all-time highs by quarter-end—a remarkable recovery after nearly entering bear market territory in early April. The growth rally that began in the second half of April continued, while low-volatility and high-quality stocks underperformed. The high-dividend-yield factor lagged the broader market, whereas the share buyback factor ended slightly higher. Europe drove the outperformance, supported by strong stock selection, particularly in France and the UK. Asia also contributed positively. The strategy benefitted from robust selection effects in Consumer Discretionary, Financials, and Materials, while Information Technology detracted from performance. Despite a negative allocation effect, mid-cap exposure contributed positively, as did small-cap allocation. In its latest rebalancing, the fund increased exposure to Utilities and decreased allocations to Industrials and Communication Services. 

*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 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

The RAM (Lux) Global Market Neutral Equity Fund (Class-PI USD net of fee*) delivered -0.05% in June, maintaining its year-to-date return at approximately 9%.

Despite market participants' concerns about Iran-Israel war escalation and its impact on energy markets, the S&P 500 reached new all-time highs by quarter-end, a remarkable recovery given it had nearly entered bear market territory in early April.

The ECB delivered its eighth rate cut since beginning the cutting cycle in June 2024, reducing the deposit rate to 2.0%. President Lagarde indicated at the June meeting that the ECB is approaching the end of its cutting cycle, though markets continue to price in another cut by year-end.

Within the Systematic fundamental book, most alpha inputs delivered flat to negative contributions across various inefficiency types, particularly within defensive, quality, value, and income.

The long side of the systematic fundamental book benefitted from good performance from biotechnology picks, the Fund retaining a net long bias there, while defensive picks lagged. The short book also detracted from performance as several highly valued cyclical names staged a rebound.

The VIX futures strategy, representing a 5% fund allocation, capitalised on the progressive normalisation of the term structure during the second half of June.

The fund maintains net long exposures in IT and Health Care, net short positions in Energy, and has established a new net short position in Industrials.

* 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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