Systematic Equities Monthly Comments - October 2025

RAM Emerging Markets Equities

The upside in global Equities continued in October, fueled by AI Capex spending announcements and optimism, despite rapidly rising valuations.

US markets trade in negative equity risk premium territory and at the lowest level of free cash-flow yields since the tech bubble, which should invite investors to caution.

Our strong Quality selection has lagged in October during the risk-on, our underweight position in technology stocks being the largest drag on performance.

The RAM (Lux) Systematic Funds - Emerging Markets fund (hereinafter ‘the Fund’) (Class-IP USD net of fee*) progressed by 1.85% over the month, it is now up 28.3% year-to-date while MSCI EM total return net is up 32.9%, with a volatility over the last year of 12.4% versus 15.5% for the index.

South Korea was the largest net detractor relative to MSCI EM, as Samsung Electronics and SK Hynix exploded on the upside (up 26% and 59% respectively on the month), benefitting from the current AI capex announcement frenzy.

Taiwan Semiconductor was the top contributor to the fund’s upside, but detracted in relative terms to MSCI EM as it is now close to a 12% weight in the index.

We believe that the current flow concentration and growing valuations in the technology sector constitute a growing downside risk for the market, while the strategies keep finding many very compelling valuations across EM.

The quality bias of the selection (with a free cash-flow yield above 9%) and its underweight to the IT sector (largest sector underweight) make the RAM Emerging Markets Equities Fund an interesting risk diversifier in current market conditions.

*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 upside in global Equities continued in October, fueled by AI Capex spending announcements and optimism, despite rapidly rising valuations.

US markets trade in negative equity risk premium territory and at the lowest level of free cash-flow yields since the tech bubble, which should invite investors to caution.

We believe the current high Equity valuations, the degradation of free cash-flow dynamics and positive real rates make the market neutral asset class very interesting as a risk diversifier.

In this speculative context, the RAM (Lux) Systematic Funds –European Market Neutral Equity fund (Class-I EUR net of fee*) was flat in October, strong selection within Financials and Consumer Staples driven by good short picks being offset by a negative contribution from a net short exposure on semiconductors.

Our Momentum engines provided positive alpha on the month, while our Value, Quality and statistical arbitrage strategies detracted given the speculative nature of the upside continuation.

In this context the Value and Quality biases of the fund should strongly help, were there to be a reversal of the market on the downside.

The fund is now up 8.14% year-to-date in EUR (IP-EUR), or 9.7% in USD (IH-USD), with very low negative beta and correlation to MSCI Europe, and an annualised volatility of 5.5% over the last year.

*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 rallied in October, a trend the RAM (Lux) Systematic Funds – European Equities fund (Class I EUR net of fee*)  participated in by posting a 1.66% gain. However, it lagged the benchmark, the MSCI Europe Net Total Return Index, which advanced by 2.56%. The low volatility investments performed strongly, while both our momentum and value strategies, though positive, were weak contributors.

Germany yielded a strong positive stock selection while our selections in the UK, France, the Netherlands, and Sweden detracted from returns. Positive country allocation effects came from being overweight in the UK and underweight in both Germany and Switzerland.

At sector level, our underweight in Financials and stock picks in Communication Services helped performance. Our selections in Information Technology, Industrials, Consumer Staples, and Health Care detracted. An overweight in Energy and Utilities partially mitigated this negative sector selection impact.

Performance was primarily driven by a strong Large Cap stock selection. Most of the fund’s underperformance stemmed from the Mid Cap segment, due to both its allocation and selection effect. Finally, our overweight to Small Caps also negatively contributed.

*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*) returned -2.61% in October. Global markets, as measured by the MSCI World Index, rose 2.00%, driven largely by a sharp rally in mega-cap growth stocks.

In this market environment, Growth and Size factors led performance, continuing the trend observed in September. Conversely, defensive factors such as Low Volatility—a strong bias of the fund—and High Dividend significantly underperformed.

The fund's Diversified IT & Communication Services allocation lagged the market, particularly as the ‘Magnificent Seven’ stocks rallied more than 6% (following a 9% gain in September). Conversely, stock selection was strong in the Materials and Consumer Discretionary sectors. The US allocation was the main negative contributor, followed by Europe and Asia. Furthermore, the fund's Small and Mid-Cap segments contributed negatively as these segments significantly underperformed the Large Cap-driven market.

In its latest rebalancing, the strategy reduced its exposure to Health Care while increasing its allocation to IT and Industrials.

*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*) returned -1.80% in October, underperforming its benchmark, the MSCI World High Dividend Yield Index, which returned -0.52%.

Global markets experienced a notable divergence during the month. While the broader MSCI World Index posted a solid gain of 2.00%, dividend-focused strategies faced significant headwinds. The market environment was highly unfavourable for our strategy's core biases. Factors such as Low Volatility, High Dividend Yield, and High Share Buyback were at the bottom of the performance tables, creating a challenging backdrop for the strategy. Conversely, Growth and Size factors led the market, as already observed in September.

Regionally, negative stock selection in the US and Japan were the main detractors, followed by weakness in Europe.

On a sector basis, the strategy suffered from negative stock selection within IT and Health Care. The fund's overweight to Financials also detracted from performance. In contrast, stock selection in Communication Services contributed positively.

Furthermore, the fund's exposure to the Small and Mid-Cap segments contributed negatively, as these segments significantly underperformed during the month.

In its latest rebalancing, the fund has increased its exposure to the IT and Communication Services sectors while reducing its allocation to Industrials.

*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 -0.56% in October, during another strong month for global equities, driven again by AI optimism and led by Emerging Markets, particularly Korean tech.

Supported by the US-China trade truce, resilient economic data, and solid earnings, the S&P 500 posted its sixth consecutive monthly gain, the first since 2021.

Growth and momentum Large Cap names outperformed at the expense of smaller cap defensive and high-dividend stocks, while Value and Quality factors contributed negatively to selection performance.

The long side of the book was the main detractor, as its defensive and quality tilt weighed on returns, while the overweight in IT (in particular strong cloud services selection) provided support.

The short side contributed positively, notably in financials (where the fund remains net short), including lease financing companies.

The volatility arbitrage book experienced a brief mid-month drawdown following renewed tariff threats from Donald Trump, but recovered to finish flat, while short-term statistical arbitrage strategies added positively.

*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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Past performance is not a guide to current or future results. There is no guarantee to get back the full amount invested. The performance data do not take into account fees and expenses charged on subscription and redemption of shares nor any taxes that may be levied. As a subscription fee calculation example, if an investor invests EUR 1000 in a fund with a subscription fee of 5%, the investor will pay to his financial intermediary EUR 50.00 on the investment amount, resulting with a subscribed amount of EUR 950.00 in fund shares. In addition, potential account keeping costs (by investor’s custodian) may reduce the performance. Some shares in the Sub-Fund apply a performance fee. Leverage intensifies the risk of potential increased losses or returns.
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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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