Performances

January was a decent month overall, with our stock and short-term bond strategies doing well. However, our Bond Fund struggled a bit – largely due to the Rupiah's volatility. This volatility stemmed from uncertainty around US trade policy, which, as you know, can have ripple effects across global markets.

Speaking of stocks, the Indonesian market (JCI) saw a small gain, boosted by interest rate cuts from the central bank. Lower rates are generally good for stocks, but we're still keeping an eye on things, especially with potential US policy changes on the horizon. On the bond side, we saw some ups and downs, but it's encouraging that foreign investors continue to see value in Indonesian government debt.

Market Outlook & Portfolio Positioning

Looking ahead, we're anticipating continued weakness in Indonesian consumer spending. This ties in with the low inflation numbers we've seen, partly driven by things like electricity discounts. The central bank might cut rates again to stimulate growth, but that could put further pressure on the Rupiah, which is something we're watching closely. In the US, the Fed seems likely to hold rates steady for now, given the current economic picture.

So, how does this all translate into our investment strategy? In fixed income, we're taking some profits and focusing on higher-yielding bonds. And in equities, we've shifted towards more stable, dividend-paying companies to weather any potential market turbulence. We're basically positioning ourselves to be a bit more defensive, given the uncertainties around trade policy and the potential for further Rupiah weakness.

Access the English version of the full report here.

Access the Indonesian version of the full report here.

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