Dear Clients,‍

In October, cash funds performed well, outperforming their benchmarks. However, other funds like Balanced, Amanah Syariah, Bond, and Sustainable Equity experienced negative returns. This downturn was primarily driven by foreign outflows due to global economic uncertainties, particularly the US presidential election.October 2024 presented a stark contrast in investment performance. While our Cash Fund and Cash Syariah Fund demonstrated resilience, our equity and fixed income funds faced headwinds from global uncertainties.

Performance

  • Indonesian equity market experienced a downturn as foreign investors withdrew due to the US elections and a weakening Rupiah. Although the Jakarta Composite Index (JCI) partially recovered, blue-chip stocks bore the brunt of the sell-off.
  • The fixed income market also faced challenges. Rising interest rates and a depreciating Rupiah exerted downward pressure on bond prices.

Outlook

As we look ahead, we anticipate continued market volatility. While potential Federal Reserve rate cuts may offer some respite, the impact of the new US administration remains uncertain.

Our Investment Strategy

We remain committed to our disciplined investment approach, prioritizing high-quality assets with robust fundamentals. For our fixed income funds, we will actively seek out attractive opportunities within the bond market. For our equity funds, our focus will be on resilient companies with strong growth prospects.

Your Investment Options

  • Simpan Bond Fund: Ideal for those seeking to preserve wealth.
  • Simpan Sustainable Equity Fund: A suitable choice for those aiming to capture long-term growth opportunities.

Thank you for your continued trust and support.

Access the English version of the full report here.

Access the Indonesian version of the full report here.