Systematic Equities Monthly Comments - December 2025

RAM Emerging Markets Equities

Global equities ended the year on a high note, buoyed by optimism around AI investments and accommodative monetary policies.

Emerging markets outperformed developed markets for the first time in five years, returning 33.6% versus 21% for the MSCI World TRN. South Korea was the standout performer, doubling over the year and contributing the most to the index's gains.

RAM (Lux) Systematic Funds - Emerging Markets fund (hereinafter ‘the Fund’) (Class-IP USD net of fee*) returned 31.4% for the year, capturing the vast majority of the index upside while maintaining a defensive profile: beta of 0.8 and annualized volatility of 12.5% versus 16% for the benchmark. Positive alpha was generated across our GARP, Value, and Low Risk strategies.

In December, the fund rose 2.3% against 3.0% for the index. The shortfall was primarily attributable to our diversified selection approach and the underperformance of our Low Risk strategy, which lagged our Growth and Value strategies for both the month and the full year.

At the stock level, the fund's underweight to Taiwan Semiconductor—up 8% in December and representing 11.5% of the cap-weighted index—accounted for most of the monthly lag.

On the positive side, our underweight to underperforming Indian industrials and strong selection within Chinese communication services and consumer names contributed to relative performance.

The overweight to Brazil detracted as domestic consumer holdings underperformed amid fiscal concerns and political uncertainty ahead of the 2026 elections. The strategy reduced exposure during the month, rotating into South Korean opportunities.

*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

European equities closed the year on a constructive note, supported by expectations of continued ECB easing and resilient corporate earnings.

The RAM (Lux) Systematic Funds –European Market Neutral Equity fund (Class-I EUR net of fee*) returned +0.23% in December (I EUR), bringing full-year performance to +8.6% in EUR and +10.4% in USD (IH USD).

For the year, the Long Value and Momentum strategies were the primary alpha drivers, while the short book contributed positively across most strategies—consistent with the fund's ability to extract alpha from both legs of the portfolio.

In December, the Momentum strategy was the best performer, generating positive returns on both the long and short sides. The statistical arbitrage mean reversion strategy also contributed positively to the month's return while enhancing overall risk diversification—helping deliver attractive risk-adjusted returns with annualized volatility of just 5% over the year.

At the sector level, the long book benefited from Materials and Financials, which were the top contributors. On the short side, Utilities and Health Care delivered strong gains. Consumer Discretionary shorts detracted, partially offsetting gains elsewhere.

The strategy is currently net long Communication services and Health Care while net short Industrials.

The fund maintained net beta exposure close to neutral throughout the month, with gross exposure stable around 260%.

*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.

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RAM European Equities

European Equities rallied in December, driven by the robust performance of Momentum. Our fund’s Machine Learning book also delivered strong returns, while the Value and Low Volatility styles contributed more modestly. Our RAM (Lux) Systematic Funds – European Equities fund (Class I EUR net of fee*) underperformed its benchmark, the MSCI Europe Net Total Return Index, returning 1.88% against 2.67% for the index.

Financials negatively impacted the fund’s relative performance, through both allocation and selection effects. Our holdings in Consumer Discretionary also detracted. Conversely, Consumer Staples, Materials, and Industrials (our largest allocated sector) positions outperformed.

The fund trailed in the Netherlands, Sweden, Spain, and Italy. However, stock choices excelled in Germany, and our underweight in France contributed positively. Our UK exposures suffered slightly from currency effects.

Our positions in the Large Cap segment struggled, while our underweight there did not impact relative performance. Selections in the Mid Cap segment also underperformed, but this negative effect was offset by the fund’s overweight in that segment.

*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.

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RAM Global Equity Low Carbon

RAM (Lux) Systematic Funds – Global Equity Low Carbon Fund (hereinafter the ‘Fund’) (Class-PI USD net of fee*) gained 1.85% in December. Global markets, as measured by the MSCI World, rose 0.81% as the year closed on a risk-on note. In this market environment, Value, Liquidity, and Momentum factors outperformed, while Low Risk stocks lagged. Despite the strategy's low-volatility profile facing headwinds, the fund outperformed the market driven by strong stock selection across mid and large-cap segments. A diversified allocation in Information Technology and Communication Services proved particularly advantageous, outpacing the broader market as the "Magnificent Seven" underperformed for a second consecutive month. Selection within Consumer Discretionary also contributed positively. However, the fund's high allocation to the Utilities sector was a detractor. Regionally, the US book was the primary engine of performance, offsetting weakness in the European and Asia Pacific allocations. In its latest rebalancing, the strategy adopted a more defensive sectorial allocation. Exposure to Information Technology and Consumer Discretionary was reduced, while allocations to Utilities and Consumer Staples were increased.   

*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.

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RAM Global Equity Income

The RAM (Lux) Global Equity Income Fund (hereinafter the ‘Fund’) (Class-IP USD net of fee*) gained 2.96% in December, significantly outperforming its benchmark, the MSCI World High Dividend Yield Index, which rose 1.14%. Global markets ended the year on a positive note, with the MSCI World Index posting a 0.81% gain. The market environment was particularly favourable for Value, Liquidity, and Momentum factors while Low Volatility underperformed. The Share Buyback factor also contributed slightly positively, while the High Dividend Yield factor remained neutral. Regionally, stock selection in the United States was the main driver of the fund's outperformance, followed by Europe, where the UK contributed positively. In contrast, Asia detracted from performance, particularly due to weakness in Japan. Across sectors, the strategy benefited from strong stock selection, most notably in Health Care, IT, and Utilities. However, Energy detracted from performance due to both negative selection and the fund's underweight positioning. The fund experienced good selection across all market cap segments, with large, mid, and small-cap stocks all contributing positively. In its latest rebalancing, the fund increased its exposure to the Utilities and Communication Services sectors while reducing its allocation to Health Care and Materials.

*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) 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.

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