📈 Overall Performance

All funds delivered positive returns, where Bond Fund and Cash Fund notably outperformed their respected benchmarks. Performance was attributed by both Equities and Fixed Income, supported by inflows back into the Indonesian capital market as reflected by the strengthening Rupiah.

‍
🔭 Outlook

Two key considerations:

1) We saw domestic inflation slow down further this month driven by lower food commodity prices, but concerns about slowing consumer confidence could necessitate rate cuts.

2) Bank Indonesia remains focused on Rupiah stability and is unlikely to cut rates before The Fed. Therefore, we continue to be positioned in Quality and Export-oriented Stocks, and short duration Government Bonds.

📊 Portfolio Positioning

Fixed Income

Bond portfolios across BLF, ASF, and BF generated positive returns in July, outperforming their respective benchmarks. The focus on short to mid-duration bonds has been instrumental in capturing attractive yields. However, given market volatility, a cautious approach is maintained with a potential shift towards longer-term bonds in anticipation of potential interest rate cuts.

Equities

Equity portfolios across BLF, ASF, and SEF delivered positive returns in July, although performance varied. The overall performance was driven by strong contributions from big banks, commodities, and consumer stocks. These sectors are expected to continue to be key focus areas due to anticipated interest rate cuts in the fourth quarter.

Read more here for English version. Click here to read the Indonesian version.