Fixed Income Monthly Comments - May 2025 (en anglais uniquement)

Global Bond Total Return

Following a volatile April, market volatility has eased significantly after the Trump administration stepped back on the tariff front. The US 10-year yield rose from 4.20% to 4.45%, underperforming Bunds quite noticeably. The tariff shock is expected to dampen US growth, add to inflationary pressures, and could prompt the Fed to maintain its current policy stance. Overall, the negative contribution from rates was offset by positive performance in credit, with FX also contributing positively to returns. Portfolio positioning remained broadly unchanged versus last month, with only marginal additions to non-USD exposures, particularly in EUR and SEK.

At the end of the month, the RAM (Lux) Tactical Funds – Global Bond Total Return Fund’s (Class B USD) duration stood at 4.75 years and the average credit quality was A+ and a yield of 5.8%.

For a complete overview of the fund performance, please click on the above-mentioned links in this document.

*The performance is gross of management fees and operational costs (0.60% management fee and 0.40% of operational costs, for a TER of approximately 1%).

** Credit Rating: is a parameter used by banks and lending institutions to determine whether an applicant is deserving of the confidence necessary for the granting of a loan. This parameter makes it possible to measure the risk of consumer default and determine the economic conditions applicable to consumers. The highest rating is indicated by the letters: AAA. This is the indication of highest financial security. This is followed by: AA, A, BBB, BB, etc. The lowest credit rating corresponds to the letter C. This letter identifies a high risk of financial default and is a figure taken into great consideration by each lending institution.

Asia Bond Total Return

Global markets found little relief from the U.S.-China Geneva Agreement, as initial optimism over easing tensions quickly gave way to renewed scepticism. Asian currencies surged, with the Taiwanese dollar jumping 7.8% in early May, driven by speculation of a currency exchange component in trade talks—later denied by Taiwan’s central bank. In Hong Kong, 1-month HIBOR plunged over 300bps to 0.56% following HKMA intervention, triggered by HKD approaching the upper band limit. Rising U.S. fiscal concerns, exacerbated by Moody’s downgrade of U.S. sovereign ratings, kept pressure on the U.S. dollar and 30-year Treasury yields. Traders scaled back Fed rate-cut expectations, reducing forecasts to one cut by year-end, while the probability of no cut in June surged to 98%. While the Federal Reserve held rates steady in May, citing patience amid ongoing policy uncertainty, Asian central banks took a more proactive approach. Against this backdrop, the Asian credit primary market slowed, with new issuance totalling USD 5.8 billion, a 41% decline from the previous month. The Asia credit index (JACI) returned 0.36%, while investment-grade (IG) spreads tightened by 19bps to +80bps, and non-IG spreads narrowed by 52bps to +523bps. The RAM (Lux) Tactical Funds II - Asia Bond Total Return Fund’s (Class PI USD net of fees****) posted a monthly total return of 1.18%, outperforming the index by 82bps. Year-to-date total return improved to 1.67%, compared to the index’s 2.63% gain. The outperformance was attributed to a shorter duration positioning and overweights in India and Thailand. The fund increased its IG exposure by 3% to 67%, maintaining a nimble strategy still favouring shorter duration, high-quality credits backed by strong fundamentals. 

For a complete overview of the fund performance, please click on the above-mentioned links in this document.

*** The fund is managed without reference to a specific benchmark. The Index used is not intended to be a restrictive definition of the investment universe. The composition of the fund's portfolio may differ significantly from that of the benchmark index.

**** All fees and expenses, except subscription and redemption fees, are taken into account

Important Information

The RAM (Lux) Tactical Funds – Global Bond Total Return is a Sub-Fund of RAM (Lux) Tactical 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).
The RAM (Lux) Tactical Funds II – Asia Bond Total Return is a Sub-Fund of RAM (Lux) Tactical Funds II, a Luxembourg SICAV with registered office: 14, Boulevard Royal L-2449 Luxembourg, approved by the CSSF and constituting a UCITS (Directive 2009/65/EC). 

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 Fund is 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.

Changes in exchange rates may cause the NAV per share in the investor's base currency to fluctuate.

Particular attention is paid to the contents of this document but no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof.

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 Information Document and prospectus with special attention to the risk warnings before investing. Global Bond Total Return Fund is classified as art.8 SFDR. Asia Bond Total Return Fund is classified as art.6 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 IIDs 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.

A summary of Investors’ rights is available on: https://www.ram-ai.com/en/regulatory-information

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.