Monthly Investor Update August 2024

Performances

All funds delivered positive returns. Performance was attributed by Equities, supported by continued inflows back into the Indonesian capital market as reflected by the strengthening Rupiah. We saw three consecutive months of absolute positive returns across all funds.

Outlook

We are entering an interest rate-cut environment, led by the US Fed as suggested by weaker inflation and employment data. Lower interest rates typically drive inflows into emerging markets like Indonesia, thus driving up asset prices. As such, we have begun adding longer-dated bonds within Fixed Income, and export- and growth-oriented stocks to capitalize on the upcoming policy shift.

Access the English version of the full report here.

Access the Indonesian version of the full report here.

Simpan Asset Management puts a dedicated team of experienced professionals at your service – your personal investment team. Leveraging their WMI and RSA qualifications, they meticulously analyze individual investments, economic factors, and industry trends every day. This in-depth research forms the foundation for our informed fund management decisions and insightful updates, keeping you informed and involved.

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Weekly Roundup

Ups and Downs in December

Investment & Research

The December market has been volatile due to foreign investor sell-offs and global economic uncertainties. Both the Fed and BI made rate decisions, with the Fed cutting rates and BI holding steady. While BI's decision aims to stabilize the Rupiah, the Fed's cuts are cautious due to persistent inflation. The market reacted negatively to these developments, leading to declines in both Indonesian and U.S. stocks and a weakening Rupiah. Simpan recommends a defensive investment strategy, focusing on non-discretionary consumption stocks, U.S. Dollar-exposed assets, and short-to-medium duration bonds. They emphasize the importance of staying invested and using a dollar-cost-averaging strategy for long-term growth.

Research

USD-IDR Hits 16,000, What’s Going On?

Investment & Research

The Rupiah is sliding again, reaching 16,013 per U.S. Dollar as of December 16, 2024. In this environment, we continue to favor equities with strong U.S. Dollar exposure as they tend to remain resilient during times of currency volatility.