Commentaries

Commentaries

8 October 2025

Systematic Equities Monthly Comments - September 2025

RAM Emerging Markets Equities

Emerging Markets equities experienced a sharp rally in September, driven predominantly by mega-cap technology stocks as AI dominated headlines, Taiwan Semiconductor leading the MSCI EM index 7.1% higher.

The RAM (Lux) Systematic Funds - Emerging Markets fund (hereinafter ‘the Fund’) (Class-IP USD net of fee*) underperformed the index during the month, advancing 3.93%, the fund's quality bias and high diversification detracting during the mega-cap-led upside. The strategies’ underweights in technology-heavy sectors (Consumer Discretionary, Information Technology, and Communication Services) detracted, as well as being underweight to mega-caps.

The Low-Risk Quality picks in the fund lagged the most, as can be expected in such high-beta markets.

At the country level, underweight positions in China and South Korea were the primary detractors, particularly within technology sectors. The Brazil overweight and India underweight provided positive contributions.

The month's sharp rotation into high-valuation growth stocks has created attractive opportunities. Exposure to richly-valued China, Communication Services, and Consumer Discretionary stocks was reduced. The South Korea underweight was eliminated, while the Brazil overweight was modestly increased. Selective small and mid-cap positions were incrementally increased as quality names became available at more compelling valuations.

The fund maintains overweight positions in Consumer Staples and Healthcare, offering attractive risk and valuation profiles.

*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

September saw a continuation of the risk-on environment for global Equities, propelled higher by technology companies amidst strong demand for AI-related stocks.

Short squeeze went on over the month, as most held short positions by hedge funds significantly outperformed the rest of the market, fueled by high levels of speculation.

In this difficult context for stock selection, the RAM (Lux) Systematic Funds –European Market Neutral Equity fund (Class-I EUR net of fee*) progressed by 80 bps over the month, thanks to strong performance from the fund’s short book.

Our Long Momentum picks performed strongly, as gold mining picks outperformed significantly.

The fund also benefited from strong picking within the Consumer Staples sector, with short internet retail positions contributing positively.

The strategies are now net short Consumer Discretionary and IT picks despite the positions detracting over the month, as high valuations in the sectors expose the lower quality names in the sectors to large potential downsides.

*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 endured a volatile month in September, with Value underperforming while Growth and Momentum styles outperformed. In this context, 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 0.49% while the benchmark gained 1.59%, mostly from the fund's momentum book.

Stock selection in France and the Netherlands detracted from performance, while the fund's underweight in the latter created an additional drag. Conversely, the UK and Germany—our first and third largest country allocations—contributed positively through favourable selection and allocation effects. Our Swedish and Norwegian selections also lagged.

On a sector basis, most of the fund's underperformance stemmed from a negative selection effect in Information Technology and Industrials. The fund's increased allocation to defensive sectors like Consumer Staples and Healthcare was a positive contributor.

The fund lagged across all market-cap segments; its overweight position in Small and Mid-cap detracted from performance, while the latter delivered a strong selection effect.

*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 -0.77% in September. Global markets, as measured by the MSCI World, rose 3.21%, as a surge in growth-oriented stocks propelled the index higher.

In this market environment, size and growth factors outperformed, while low-volatility and high-dividend stocks lagged. The strategy was hampered by its allocation to the US, which was the main negative contributor to performance. The fund's diversified IT allocation lagged the market, particularly as the ‘magnificent seven’ stocks were up 9%. However, the fund benefitted from strong stock selection in Utilities. There was also some good stock selection in Europe, for example, in Italy & Denmark. The fund's mid-cap allocation was a negative contributor to performance, despite the stock selection within this segment being positive. In its latest rebalancing, the strategy made minimal changes, reducing its exposure to Communication Services and increasing its allocation to Consumer Discretionary.

*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 -0.13% in September, underperforming its benchmark, the MSCI World High Dividend Yield Index, which returned 0.54%. Global markets were strong during the month, with the MSCI World Index posting a solid 3.21% gain. This market environment favoured growth-oriented equities, in particular the ‘magnificent seven,’ over defensive & value stocks. High Dividend, and High Share Buyback factors also underperformed.

Regionally, our stock selection in the US was the main detractor from performance. However, strong stock selection in Europe, particularly in the UK and Denmark, partly compensated for this. At the sector level, the fund’s performance was negatively impacted by stock selection in IT and Healthcare, while a tactical underweight in Staples and Energy contributed positively. Our overweight to mid-cap stocks had a negative allocation effect, though this was partially offset by good stock selection within this segment. In our latest rebalancing, we have decreased our exposure to Industrials while increasing our allocation to Information Technology 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.

 

RAM Global Market Neutral Equity

The RAM (Lux) Global Market Neutral Equity Fund (Class-PI USD net of fee*) gained +0.54% in September, during a risk-on month for global risky assets, as was Q3 2025 overall.

In Q3 2025, Chinese and broader Asian tech stocks, as well as Emerging Markets, performed strongly, supported by AI-driven optimism and expectations of Fed rate cuts.

This backdrop of a concentrated, growth-led market rally created challenging conditions for stock picking in September, but the Fund nonetheless delivered positive performance, notably thanks to the systematic fundamental book.

The systematic fundamental book benefitted from the underperformance of the short selection, particularly in the Consumer Discretionary (restaurant chains, leisure resorts) and Materials sectors (chemical manufacturers).

On the long side, several names with positive earnings dynamics contributed positively and outperformed the market, notably gold miners.

Conversely, the shorter-term statistical arbitrage strategy detracted from performance, failing to generate opportunities in a low-volatility market.

The VIX Arbitrage strategy also performed strongly, effectively capturing carry opportunities on a very steep VIX curve.

* 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).
This document is confidential and is intended only for the use of the person to whom it was delivered; it may not be reproduced or distributed.
There is no guarantee that the holdings shown will be held in the future. The investment described concerns the acquisition of shares in the Sub-Fund and not in a specific underlying asset.
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.
The Management Company may decide to terminate the marketing arrangement in place in any given country in accordance with Article 93a of Directive 2009/65/EC.
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Prior to any transaction, clients should check whether it is suited to their personal situation, and analyse the specific risks incurred, especially financial, legal and tax risks, and consult professional advisers if necessary.
Please refer to the Key Investor Information Document and prospectus with special attention to the risk warnings before investing. This Sub-Funds are classified as art.8 and 9 SFDR. For further information on ESG, please refer to:
https://www.ram-ai.com/en/regulatory-information and the relevant Sub-Fund webpage, section "Sustainability-related disclosures". 
The prospectus, constitutive documents and financial reports are available in English and French while PRIIPs KID are available in the relevant local languages. These documents can be obtained, free of charge, from the SICAVs’ and Management Company’s head office and www.ram-ai.com, its representative and distributor in Switzerland, RAM Active Investments S.A. and the relevant local representatives in the distribution countries.
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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.
The source of the above-mentioned information (except if stated otherwise) is RAM Active Investments and the date of reference is the date of this document.
 

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This document has been drawn up for information purposes only. It is neither an offer nor an invitation to buy or sell the investment products mentioned herein and may not be interpreted as an investment advisory service. It is not intended to be distributed, published or used in a jurisdiction where such distribution, publication or use is prohibited, and is not intended for any person or entity to whom or to which it would be illegal to address such a document. In particular, the products mentioned herein 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). The opinions expressed herein do not take into account each customer’s individual situation, objectives or needs. Customers should form their own opinion about any security or financial instrument mentioned in this document. Prior to any transaction, customers should check whether it is suited to their personal situation and analyse the specific risks incurred, especially financial, legal and tax risks, and consult professional advisers if necessary. The information and analyses contained in this document are based on sources deemed to be reliable. However, RAM AI Group 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. Investors are advised to base their decision whether or not to invest in fund units on the most recent reports and prospectuses. These contain further information on the products concerned. The value of units and income thereon may rise or fall and is in no way guaranteed. The price of the financial products mentioned in this document may fluctuate and drop both suddenly and sharply, and it is even possible that all money invested may be lost. If requested, RAM AI Group will provide customers with more detailed information on the risks attached to specific investments. Exchange rate variations may also cause the value of an investment to rise or fall. Whether real or simulated, past performance is not necessarily a reliable guide to future performance. The prospectus, key investor information document, articles of association and financial reports are available free of charge from the SICAVs’ and management company’s head offices, its representative and distributor in Switzerland, RAM Active Investments S.A., Geneva, and the funds’ representative in the country in which the funds are registered. This marketing document has not been approved by any financial Authority, it is confidential and its total or partial reproduction and distribution are prohibited. 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 SA, 2 Boulevard de la Foire 1528 Luxembourg, Grand Duchy of Luxembourg. The source of the above-mentioned information (except if stated otherwise) is RAM Active Investments SA and the date of reference is the date of this document, end of the previous month.