Systematic Equities Monthly Comments - November 2025

RAM Emerging Markets Equities

Emerging Markets Equities corrected with the broad market in November. The declining free cash flow yields of large tech firms have led many of them to start issuance of debt to finance the massive Capex investments planned in the next quarters, which starts raising questions by equity investors.

Technology stocks underperformed over the month along with the largest tech firms globally, giving back 6%.

The RAM (Lux) Systematic Funds - Emerging Markets fund (hereinafter ‘the Fund’) (Class-IP USD net of fee*) was up on the month by 30bps while the MSCI EM index was down 2.4%, providing a notable decorrelation on the downside, the Quality and Value characteristics of the selection contributing very positively to the relative performance.

A strong selection in the Consumer Discretionary sector thanks to an underweight to some tech Chinese Consumer plays and an underweight to the IT sector were the top contributors to the month’s relative performance, helped also by strong Consumer Staples picks.

Good picks in Hong Kong and an underweight position to very volatile South Korean stocks also contributed positively to the portfolio.

The fund’s current free cash flow yield is close to 9%, a compelling level in absolute terms and more than double the free cash flow yield of the MSCI EM index, reflecting the attractiveness of being selective within EM.

*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

Despite intra-month volatility on the back of legitimate concerns regarding the sustainability of current AI investments, European markets finished the month of November up.

The RAM (Lux) Systematic Funds –European Market Neutral Equity fund (Class-I EUR net of fee*) was positive on the month, up 20 bps, and is back around the highs of the year, progressing more than 8% since the beginning of the year with an annualised volatility of 5.5%.

Some IT long positions detracted over the month, while Health Care, Utilities and Materials longs contributed positively to performance.

Good short picks in Industrials were among the top contributors as their negative earnings momentum accelerated in the last few weeks.

Stocks with positive momentum outperformed in the Long selection of the book, while Quality, Low Risk plays lagged.

On the short side of the book, Value plays detracted as expensive Growth names ended the month outperforming the rest of the market.

The Systematic Fundamental strategy explained the month’s upside as the Statistical Arbitrage strategy contributed negatively.

*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 experienced volatility in November, as Switzerland reached a tariffs deal with the US and peace talks in Ukraine resumed. Inflation remained steady at 2.1% YoY and the ECB signalled the key interest rates would remain unchanged. In this context, our RAM (Lux) Systematic Funds – European Equities fund (Class I EUR net of fee*) returned 0.56%, lagging its benchmark, the MSCI Europe Net Total Return Index, up 0.91%.

The main positive relative contributor was Industrials, where our selection strongly overperformed. Financials, Consumer Staples and Health Care lagged, despite strong picks like AstraZeneca our Novartis in the latter. The fund's underweight in Financials further penalised the fund's relative performance.

Our selection in the UK and Italy lagged, while the fund's underweight in Switzerland detracted as the country negotiated a 15% tariff rate with the US. The selection in Germany, the Netherlands, France and Norway positively contributed to a smaller extent.

Most of the tracking error stemmed from the mid-cap segment. While our large-cap selection delivered strong excess returns, the overweight exposure to small-caps further dragged on relative value.

*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*) gained 1.75% in November. Global developed markets rose 0.28%, as investors balanced hopes for a December Federal Reserve rate cut against mixed macroeconomic signals and lingering geopolitical uncertainty.

In this market environment, factor leadership reversed compared to recent months. Value, Low Volatility, and High Dividend stocks outperformed, while Growth, Liquidity, and Size factors underperformed.

The strategy benefitted from a diversified IT allocation which outperformed the broader market, particularly as the ‘Magnificent Seven’ dropped more than 1% following their rally since April. Strong stock selection in Financials also contributed to returns. Overall, the defensive sector allocation, characterised by high exposure to Healthcare, Financials, and Consumer Staples, was profitable.

Regionally, the US allocation was the main positive contributor, supported by good selection in Asia, notably in Japan and Singapore. Conversely, selection in Europe was less positive, with Switzerland and the UK acting as detractors. The fund's mid-cap allocation also contributed positively as the Mid Caps segment outperformed Large Caps.

In its latest rebalancing, the strategy increased its exposure to IT, Consumer Discretionary, and Utilities. Allocations to Healthcare, Industrials, and Consumer Staples were reduced.

*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 3.2% in November, performing in line with its benchmark, the MSCI World High Dividend Yield Index, which rose 3.23%.

Global markets took a breather during the month, with the MSCI World Index posting a muted gain of 0.28% as investors rotated out of high-growth sectors. The market environment marked a sharp reversal of previous trends: Value, Low Volatility, and High Dividend Yield factors significantly outperformed, while Growth, Liquidity, and Size factors lagged. Share Buyback factors also contributed positively, though to a lesser extent.

Regionally, Asia was the main driver of performance, with Japan contributing most significantly thanks to strong stock selection. In contrast, Europe detracted from performance, weighed down by an underweight position in Switzerland and negative allocation effects in the UK. The strategy benefitted from strong stock selection in Financials and Healthcare. IT detracted from performance, specifically due to negative selection and an overweight allocation to Packaged Software. The fund’s exposure to mid-cap stocks also had a positive attribution, as the Mid Cap index outperformed large caps during the period.

In its latest rebalancing, the fund has increased its exposure to the Energy, Financials, and IT sectors while reducing its allocation to Consumer Staples and Healthcare. 

*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*) returned +2.52% in November, bringing its year-to-date return to +10.60%. The S&P 500 gained just +0.25% during a volatile month for global equities.

Market dynamics in November were dominated by the overhang of a prolonged U.S. government shutdown that ended mid-month and an abrupt repricing of expensive technology stocks, as the AI-driven euphoria cooled.

Technology-heavy markets in Asia (e.g. Korea and Taiwan) saw steeper declines, contributing to emerging markets notably lagging developed markets during the month.

Defensive sectors significantly outperformed cyclical sectors and technology, reversing the trend seen earlier in the year. Within the MSCI World index, small-cap stocks outpaced large-caps as investors sought diversification away from richly valued mega-cap tech.

The Fund’s Systematic Fundamental engine was the primary contributor to overall performance in November. Cheaper, lower-beta stocks outperformed while highly valued names lagged.

The Fund’s short positions were particularly effective, especially in the Industrials sector where it maintains a net short bias and significant gross exposure. Elevated valuation dispersion within Industrials continues to create opportunities, and the Fund’s short picks in sub-industries such as transportation, infrastructure & equipment, delivered strong gains.

Among the other strategies, the Statistical Arbitrage engine underperformed in November, while the Volatility Arbitrage engine continued to provide steady incremental profits, benefitting from a persistently steep VIX futures term structure.

*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.
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 Funds are 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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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, Mediobanca Management Company S.A. 2 Boulevard de la Foire, 1528, Luxembourg, Grand Duchy of Luxembourg.
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