Ria Portfolio Performance Review – August 2025
August delivered mixed but generally positive results across our investment lineup, with domestic markets showing strength. ASN Equity Malaysia led performance with an impressive 3.10% return, rebounding strongly from previous month's modest gains, while ASN Equity Global faced headwinds with a -0.79% decline amid global market volatility. ASN Sukuk continued its steady contribution with a 0.63% return, maintaining its role as a reliable income generator and portfolio stabilizer during varying market conditions.
The divergent performance between domestic and global equities created an interesting dynamic across our portfolio strategies, with August results demonstrating the value of our diversified approach. All portfolio strategies delivered positive returns for the month, ranging from 0.62% for Very Conservative to 0.73% for Very Aggressive. The relatively narrow spread between strategies reflects the balanced nature of our allocations and the offsetting effects of different asset classes during periods of mixed market performance. Year-to-date performance continues to show the resilience of our more conservative strategies. Very Conservative maintains the strongest position at 3.90%, followed by Moderately Conservative at 3.09% and Moderate at 2.30%. More aggressive portfolios reflect the impact of earlier global market volatility, with Moderately Aggressive at 1.38%, Aggressive at 0.53%, and Very Aggressive showing a slight decline of -0.01% for the year.
Since Ria's launch, our diversified approach continues to demonstrate consistent value creation across all risk profiles. The Aggressive portfolio leads cumulative returns at 9.82%, closely followed by Moderately Aggressive at 9.72% and Moderate at 8.89%. The Very Aggressive strategy has delivered 8.28%, while our more defensive strategies show solid performance with Moderately Conservative achieving 8.04% and Very Conservative at 7.26%. These results demonstrate the effectiveness of our balanced approach across different market environments, reinforcing our philosophy that disciplined diversification and staying invested through market cycles rewards patient investors.
Market Commentary – August 2025
Global equity markets delivered modest but positive gains in August, with the S&P 500 adding 1.05% for the month, bringing its year-to-date return to 4.66%. The MSCI World Index gained 1.53% in August, extending its year-to-date performance to 8.34%. European markets continued their impressive year-to-date performance, with Germany's DAX adding 0.77% for the month while maintaining its position as the year's standout performer with a remarkable 27.99% year-to-date return. The UK's FTSE 100 gained 2.40% in August, extending its year-to-date return to 17.80%, while France's CAC 40 added 0.57% to bring its gains to 14.78% for the year.
Asian markets showed divergent performance patterns. Japan's Nikkei 225 surged 5.73% in August, significantly outperforming other major indices and bringing its year-to-date return to 9.70% amid renewed investor confidence. Hong Kong's Hang Seng gained 1.09% for the month, maintaining its strong 20.87% year-to-date performance on continued optimism around regional policy support. Malaysia's FBMKLCI gained 4.16% in August, though it remains negative at -1.93% year-to-date as domestic market challenges persisted despite the monthly recovery. Commodities presented a mixed picture in August. Gold continued its stellar year with a 3.80% gain for the month, extending its year-to-date return to an impressive 24.12% as investors sought safe-haven assets amid ongoing economic uncertainties. Oil markets faced significant pressure, with Brent crude declining -5.91% in August, though it maintains a positive 2.54% year-to-date return despite recent volatility.
In August, the U.S. job market showed signs of cooling as unemployment inched up to 4.3% and job growth came in weaker than expected, but the bigger picture tells a different story as the economy overall is still holding up well and interest rates remain higher than in recent years. Inflation also has not gone away, with prices still climbing faster than the Federal Reserve’s 2% goal and expectations that they will stay elevated, leaving the Fed in a tricky spot as markets and politicians push for rate cuts while the central bank remains cautious. At the same time, productivity, which measures how much we produce per hour worked, is climbing even while hours worked are falling, showing that businesses are finding ways to do more with fewer labor by leaning on technology and capital, which means traditional job numbers may no longer fully capture the health of the economy. Despite these mixed signals, markets held up in August with U.S. stocks ending higher, European markets showing strength, and gold standing out as a big winner, highlighting the importance of spreading investments across different assets and regions in an evolving economic landscape.
RIA Reminder – While the World Works Harder, Let Your Money Work Smarter
August delivered a mixed bag of signals from the markets – some investments performed well, while others faced challenges. This is the true nature of investing. It is a timely reminder of why we invest the way we do, especially in a world where capital is becoming the most powerful force in the economy.
The economic landscape is constantly evolving, much like shifting weather patterns. At present, interest rates are stabilizing at higher levels, the job market is showing signs of softness, yet the overall economy remains resilient. Interestingly, this resilience is not driven by job creation, but by capital working harder and smarter. Technology and investment capital are now driving productivity gains that once required large workforces. This makes owning a share of this capital revolution through your investments more important than ever.
The market results you saw in August reflect this new reality. While some parts of your portfolio gained and others struggled, together they help smooth out the ups and downs of investing. More importantly, every month you continue to invest, you are increasing your ownership in this capital-driven economy.
In a world where machines and smart investments are doing more of the heavy lifting, being on the ownership side – not just the labor side – is becoming increasingly critical. The beauty of building wealth this way is that you do not need to predict market winners or guess where interest rates are headed. You simply need to recognize that capital is becoming king. And the more capital you accumulate through consistent investing, the better positioned you will be for a future where wealth creation depends less on how hard you work – and more on how much of the system you own that is doing the work.
Log in to Ria today and see how your steady approach is navigating this changing world because every month you stay the course is another step toward the future that you are building.