Systematic Equities Monthly Comments - May 2025

RAM Emerging Markets Equities

In May, Global equities posted their strongest month in over a year as the partial rollback of US tariffs continued to boost market sentiment.

Taiwan led Emerging Markets higher, as Taiwan Semiconductor rallied strongly with global growth peers.

The MSCI Emerging Markets (TRN) was up 4.3% over the month and is now up 8.7% year-to-date, with no down month.

The RAM (Lux) Systematic Funds - Emerging Markets fund (hereinafter ‘the Fund’) (Class-IP USD net of fee*) was up 5.13% in May, significantly outperforming the MSCI EM index despite the fund’s underweight position to Taiwan Semiconductor (which accounts for 9.5% of the index allocation).

Our strategy’s value and growth-momentum selections both outperformed the market significantly, while our picks within low-risk profiles of stocks naturally detracted on the sharp upside.

The strategy benefitted from very strong selection in China, particularly in the Healthcare sector, where biotech and pharmaceutical picks delivered large positive returns.

The good selection in India and the underweight position contributed positively, as the Indian rupee faced further pressure during the month.

The fund’s underweight on Saudi Arabia was another positive contributor.

Over the month, the selection grew in Brazil, one of the strategy's top overweights since the beginning of the year, and in China, also, more positive earnings revisions helped boost our strategy’s selection of value opportunities in the country.

As of end of May, the fund (IP share class) is up 10.8% year-to-date, more than 2% ahead of the MSCI EM TRN, and up 79% over the last five years, outperforming by 28% with a volatility more than 2 points lower than the index.

*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*) was up 2% in May, another strong month for the strategy despite the market upside leading to short covering in the market during the second week of the month.

Picks from our momentum and value strategies were among the top contributors on the long side of the book.

On the short side, negative momentum picks contributed positively, while low-quality overvalued shorts detracted, as part of the names saw a large amount of short covering in the second week of the month.

Our top long contributors were Energy picks and Financials, mostly insurers.

On the short side, our best picks were in the Healthcare and Consumer Staples sectors.

Our statistical arbitrage strategy again contributed positively over the month, capturing mean-reversion opportunities arising from market dislocation following Liberation Day and its subsequent rollback.

The complementary blend of our systematic fundamental and statistical arbitrage strategies helped the European Market Neutral fund progress by 8.2% (I-EUR) since the beginning of the year, as of the end of May, with volatility lower than 5% over the last 12 months.

*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 strongly performed in May, continuing the rally which started in early April (post-liberation day) and ending the month up 4.7%. The RAM (Lux) Systematic Funds – European Equities fund (Class IP EUR net of fee*) outperformed with a return of 5.14% in an environment that remained noticeably dispersed.

France, Switzerland and the Netherlands were the largest contributors, followed by the UK, which remains the largest allocated country. The latter saw a strong performance near the middle of the month, following the announcement of a tariff deal with the US. The fund’s selection lagged in Germany, the second largest allocated country.

Defensive sectors (Healthcare and Consumer Staples) and Energy were the largest positive contributors over the month. Industrials, which remains the fund’s largest allocated sector, also positively contributed while Communication Services detracted.

The SMID Cap segment strongly overperformed the large cap segment which itself underperformed the index. The fund selection overperformed in the former, the mid cap segment bringing most of the positive relative contribution while the large cap selection was in line with the benchmark.

*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 Global Equities Low Carbon

The RAM (Lux) Systematic Funds – Global Equities Low Carbon Fund’s (hereinafter the ‘Fund’) (Class-PI USD net of fee*) gained 3.12% in May. Last month, global equities posted their strongest month in over a year, with the MSCI World up 5.92%, driven by a partial rollback of U.S.–China/EU tariffs that eased trade tensions, a dovish Fed stance, and a dollar poised for its fifth consecutive monthly decline. The Growth rally initiated in the second half of April continued into May, while low-volatility and high-quality names underperformed. IT and Communication Services outperformed the rest of the market. The strategy identified good names in Financials and Materials. While the U.S. drove market returns, the best contributing region for the fund was Europe, particularly the UK and Switzerland. Globally, mid caps underperformed large caps. However, the mid cap book of the fund strongly outperformed thanks to strong selection. In its latest rebalancing, the strategy decreased exposure to Financials and IT while increasing allocations to Utilities 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.

RAM Global Equity Income

The RAM (Lux) Global Equity Income Fund’s (hereinafter the ‘Fund’) (Class-IP USD net of fee*) gained 4.29% in May, outperforming its benchmark, the MSCI World High Dividend Yield Index, up 1.96%. In May, global equities posted their strongest month in over a year, with the MSCI World up 5.92%, driven by a partial rollback of U.S.–China/EU tariffs that eased trade tensions, a dovish Fed stance, and a dollar poised for its fifth consecutive monthly decline. The growth rally initiated in the second half of April continued into May, while low-volatility and high-quality names underperformed. The high-dividend-yield factor continues to underperform the broader market (by close to 1.5%), while the share buyback factor was in line. All regions contributed positively, with the U.S. selection being the top contributor, followed by Europe (particularly France and UK) and Asia (particularly Hong Kong and Japan). The strategy benefitted from a strong selection effect in most of the sectors (in particular Consumer Disc, Energy, and Industrials), from an underweight in Energy and an overweight in Financials. All market cap segments contributed positively, with notably strong selection effect for mid caps despite a slightly negative allocation effect. In its latest rebalancing, the fund increased exposure to Healthcare and Communication Services while decreasing allocations to Financials and IT.  

*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

The RAM (Lux) Global Market Neutral Equity Fund (Class-PI USD net of fee*) gained 1.56% in May, lifting its year-to-date return to 9.01 %.

In May, global equities posted their strongest month in over a year, with the MSCI World up 5.92 %, driven by a partial rollback of U.S.–China/EU tariffs that eased trade tensions, a dovish Fed stance, and a dollar poised for its fifth consecutive monthly decline.

The fund benefitted from broad-based performance: the fundamental book, statistical arbitrage book, and volatility strategy all contributed positively.

Within the fundamental book, both long and short sides contributed positively, with alpha generation even more pervasive than last year, when shorts dominated.

Net-long biases in IT and Communication Services helped the fundamental book, as these two sectors outperformed; several IT long picks with positive earnings dynamics contributed significantly.

The short side of the fundamental book benefitted from strong selection, notably via cash-flow-negative exploration and mining companies.

The fund remains net long Healthcare and IT, 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.

The information and analyses contained in this document are based on sources deemed to be reliable. However, RAM Active Investments S.A. cannot guarantee that said information and analyses are up-to-date, accurate or exhaustive, and accepts no liability for any loss or damage that may result from their use. All information and assessments are subject to change without notice.
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