RIA : Portfolio Performance Review - May 2024
Ria Background
Ria is a robo-investment advisor capable of automatically managing investments depending on your chosen portfolio.
Currently, Ria offers 6 portfolio options, from the most conservative to the most aggressive, which are categorized based on the level of risk that needs to be borne and the return desired by investors.
Ria differentiates itself from other robo advisors by offering portfolios comprised of ASNB unit trust funds, which focus on Malaysian and global equities as well as sukuk (Islamic bonds).
RIA Portfolio Performance Review – May 2024
In May 2024, portfolio performances varied according to their risk levels and fund allocations.
The Very Conservative portfolio returned 0.78%, primarily influenced by ASN Sukuk's stable but modest return of 0.73%.
As risk levels increased, so did returns: the Moderately Conservative portfolio returned 1.30%, Moderate 1.79%, Moderately Aggressive 2.34%, Aggressive 2.85%, and Very Aggressive 3.22%.
Higher returns in more aggressive portfolios were driven by significantallocations to ASN Equity Malaysia (4.65%) and ASN Equity Global (2.37%), with ASN Equity Malaysia being the standout performer.
Market Commentary – May 2024
The US economy showed strong performance in May 2024, with major indexes reaching record highs. The S&P 500 rose by 5%, and the Nasdaq by 8.5%, led by Nvidia. Global markets faced interest rate concerns, affecting Japan and China negatively.
The FTSE 100 saw marginal growth, while the Euro Stoxx 600 increased by over 2%. The Fed signalled possible future rate hikes if needed, but the market expects potentially two rate cuts.
UK and European markets dealt with inflation and election uncertainties. China's retail sales slowed, but industrial production improved.
Domestically, KLCI rose above the 1600 level last seen in mid-2022. Further uptrend would depend on the Fed’s rate cut signal. Positive domestic fundamentals, tourism recovery, energy transition, and increased disposable income are likely to support future growth.
The momentum of the Malaysian bond and sukuk market remains steady, reaching a total outstanding value of RM2.06 trillion, supported by expectations of declining global interest rates.
Total issuance for the month declined by 6% to RM28.6 billion, with the Government accounting for 60% of the issuance and the remaining 40% from Corporate.
RIA Reminder – Diversification Key to Long-Term Investing
With all the noise from the markets, investors should focus on a long-term investing mindset, ignoring short-term uncertainties and focusing on their financial goals.
Maintaining a diversified portfolio is crucial to achieving long-term, risk-adjusted returns. Diversification helps mitigate risks and provides a balanced approach to market volatility, ensuring appropriate growth according to your risk profile.
For more information about Ria, please visit https://www.asnb.com.my/ria.php
