Systematic Equities Monthly Comments - May 2026

RAM Emerging Markets Equities

AI capex momentum drove global technology hardware stocks sharply higher in May, led by semiconductor and memory names, pushing parts of the segment to bubble-level valuations and the index to record concentration; IT now represents 43% of the MSCI EM Index, with Taiwan Semiconductor, Samsung Electronics and SK Hynix alone close to 30%. The sector accounted for more than 110% of the index's 9.7% return over the month, leaving the rest of the market in negative territory.

Our growth-momentum strategy has been well positioned in the AI theme and participated meaningfully in its rise, while systematically taking profits as the rally extended and reversal risk built this year. The strategy therefore retains a growing underweight to the AI hardware theme, participating in the upside in a very risk-controlled way.

Beyond the mega-caps, the strategy identifies a broad and attractive opportunity set across EM, in companies combining solid growth and quality characteristics at attractive valuations; its current selection carries an 8% free-cash-flow yield, close to double that of the index, including a particularly compelling set of opportunities in the mid-cap segment, currently overlooked by investors. The portfolio is overweight Consumer Staples and Health Care alongside Consumer Discretionary.

In a market this concentrated, the strategy's strong quality bias and disciplined risk management are more valuable than ever.

The RAM (Lux) Systematic Funds - Emerging Markets fund (hereinafter ‘the Fund’) (Class-IP USD net of fee*) gained 3.6% over the month and after the recent lag has returned 52% over 5 years against 44% for the MSCI EM index with materially less risk, at 13.2% volatility versus 16.7% for 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.

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RAM European Market Neutral Equity

AI capex momentum drove global equities higher in May, led by semiconductor and memory names, pushing parts of the segment to bubble-level valuations and global indices to record concentration.

In Europe, the risk-on move was accompanied by strong outperformance of high-beta, low-quality, cash-burning names — an advance fueled largely by short covering through the month.

Against this backdrop, the RAM (Lux) Systematic Funds – European Market Neutral Equity fund (Class-I EUR net of fee*) returned -1.35% over the month, impacted by the sharp rally in a number of its single-name shorts. The worst detractors on the short side were in Consumer Discretionary and Technology, where semiconductor names rose sharply irrespective of fundamentals. On the long side, technology picks contributed positively, while energy longs detracted as the prospect of a peace process pushed oil prices lower.

The statistical arbitrage strategy detracted slightly, as the strong momentum trend of recent months has yet to mean-revert.

After this risk-on episode, the asymmetry is once again very attractive for the quality bias of our systematic fundamental strategy and for the statistical arbitrage strategy, which should benefit from a more volatile market.

*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.

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RAM European Equities

European Equities rebounded in May after a rough second half of April, as US-Iran tensions eased. However, inflation remained elevated (Germany 2.9% YoY; Eurozone Energy +10.9% YoY) and still is a source of risk for the continent. The RAM (Lux) Systematic Funds – European Equities fund (Class I EUR net of fee*) returned 1.91%, underperforming the MSCI Europe Net Total Return Index (+3.16%), impacted by its Defensive and, to a lesser extent, Machine Learning books, while its value book overperformed.

Detractors included our Energy overweight and selection in Consumer Staples, Information Technology, and Consumer Discretionary. Our picks in Health Care and Utilities slightly overperformed.

Geographically, the Netherlands (allocation and selection), our Norway overweight, and Spanish selection weighed on relative performance, partly offset by strong picks in Sweden, the UK, and Switzerland.

By size, mid-caps detracted on both allocation and selection, while our small-cap overweight contributed positively. Our selection in the large-cap segment underperformed.

*Note: I 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.

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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 1.11% in May.

Global markets, as measured by the MSCI World, rose 4.55%, as global equities hit record highs on the AI trade, with Korea, Taiwan and Japan reaching all-time highs and emerging markets the standout performer (+9.7%). The S&P 500 advanced 5.3% with Technology leading (+15.6%), as a strong earnings season reinforced the move.

The rally held despite the unresolved Middle East war keeping Hormuz disrupted and oil volatile, while a hot April CPI (+3.8% yoy), a 10-year yield near 4.5% and a more hawkish Fed Chair drove a short-lived mid-month sell-off.

In this market environment, dispersion was extreme on the same factors as last month: Momentum and Growth led, while Low Volatility, Value and High Dividend lagged. The strategy benefitted from strong stock selection in Communication Services and Utilities. The main detractor versus global market was the fund's lowest allocation to IT, in particular in the US. The fund's mid-cap allocation, representing roughly 14% of assets, saw positive stock selection despite the market segment underperforming.

In its latest rebalancing, the strategy increased its exposure to Industrials, which became the largest sector position, while reducing IT and Financials. Health Care remained a core allocation.

*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.

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RAM Global Equity Income

The RAM (Lux) Systematic Funds - Global Equity Income Fund (hereinafter the ‘Fund’) (Class-IP USD net of fee*) gained 1.19% in May, outperforming its benchmark, the MSCI World High Dividend Yield Index, which rose 0.34%.

Global markets reached record highs during the month, with the MSCI World Index posting a strong 4.55% gain, driven by the AI trade as Korea, Taiwan and Japan hit all-time highs and a robust earnings season reinforced the move.

The rally held despite the unresolved Middle East war keeping Hormuz disrupted and oil volatile, while a hot April CPI (+3.8% yoy), a 10-year near 4.5% and a more hawkish Fed Chair drove a short-lived mid-month sell-off.

As for last month, the environment was marked by extreme factor dispersion, with Momentum and Growth volume leading, while Low Volatility, Value, and both High Dividend and Share Buyback factors lagged, weighing on the strategy. Regionally, the US and Asia detracted, while EU contributed positively.

At the sector level, the strategy benefitted from strong stock selection in Health Care, Consumer Discretionary, and Utilities. However, IT detracted significantly, as selection lagged in a market driven by the largest technology names. The fund's exposure to small and mid-cap stocks also had a positive attribution. In its latest rebalancing, the fund increased its exposure to the Health Care and Energy sectors while reducing Consumer Discretionary 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.

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RAM Global Market Neutral Equity

The RAM (Lux) Systematic Funds - Global Market Neutral Equity Fund (Class-PI USD net of fee*) was up +2.81% in another risk-on month for global markets.

Global equities hit record highs on the AI trade, with Korea, Taiwan and Japan at all-time highs, EM the standout (+9.7%) and the S&P 500 +5.3% with tech leading (+15.6%) as a strong earnings season reinforced the move.

The rally held despite the unresolved Middle East war keeping Hormuz disrupted and oil volatile, while a hot April CPI (+3.8% yoy), a 10-year near 4.5% and a more hawkish Fed Chair drove a short-lived mid-month sell-off.

With momentum and growth again leading, the low-frequency engine was the top contributor, well positioned in IT, its largest net long, with net longs in Communication Services and Consumer Discretionary helping to a lesser extent; Korean and US longs led the gains.

Detractors came from the short side, mainly in Health Care and Consumer Discretionary, where some low-quality names staged short-squeeze rebounds.

The Statistical Arbitrage book gave back its March–April gains, hit by the short squeeze in US IT names, notably semiconductor/telecom-equipment and network-security. The VIX arb book contributed strongly, up c.2% over the month.

The Fund is currently net long IT, Communication Services and Consumer Discretionary, and net short Financials and Materials.

*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.