15 January 2021
Edito 2021 by Thomas de Saint-Seine
The RAM AI team wishes you happiness, good health and success in 2021. As we move into a new year it is worth giving some perspective on what drove the markets through a year of exceptional circumstances with the pandemic.
This historical context has required massive interventions by central banks and states. Thus, the classic market mechanisms have been distorted by these massive flows to counterbalance the disastrous effects of the pandemic.
This context has benefited some of our more discretionary strategies such as RAM Global Bond Total Return Fund where the experience and the serenity of our fund managers have enabled us to achieve an excellent performance with a contained volatility and demonstrate the interest in enjoying full flexibility in a such an environment.
For our systematic solutions whose models are fed by technical or fundamental information over a mid- to long-term investment horizon, the environment has been more difficult to predict between very unusual and unpredictable events and the creation of certain bubbles triggered by the central banks’ interventions.
Even with a very busy 2020, we have continued to improve our ESG integration in all our products and have launched new innovative and promising solutions such as RAM Diversified Alpha which benefits from the market dispersion with a decorrelation virtue to all asset classes or RAM Stable Climate Global Equities which offers the possibility for investors to combine a low carbon emission with prediction of alpha using machine learning techniques on hundreds of factors.
Despite the current very specific environment, we remain convinced that the more traditional market mechanisms will gradually return as the world population will have access to effective vaccination solutions and central banks will fade their actions, creating opportunities for active bonds and stocks fundamental managers such as RAM AI. We are entering 2021 with confidence in our ability to deliver added value for you.
In order to provide you with more color on markets outlook for equities and bonds, you will find hereafter two analysis carried out by our fund management teams. All RAM AI remains at your entire disposal to discuss our observations in more detail.
Thomas de Saint Seine