Ria: Lessons from 2025

The year 2025 saw heightened volatility in global equity markets driven by uncertainty around trade policies following the broad tariff announcements on Liberation Day by the US, episodic rebounds in Chinese equities as domestic policy support and artificial intelligence (AI) investment bolstered sentiment, optimism in Japanese stocks supported by expectations of fiscal stimulus and accommodative monetary conditions, and disruptions related to the longest US government shutdown in history. Despite these headwinds, 2025 proved to be a positive year for major stock markets, powered by robust corporate earnings and expectations that continued investment in AI would further underpin earnings growth. 

Liberation Day spooked global markets, but recovery soon followed 

President Trump’s announcement of sweeping tariffs in early April, dubbed Liberation Day, aimed at reducing trade deficits and boosting American industry, triggered broad declines in major stock markets as investors reassessed global trade and growth prospects. However, markets began to recover after parts of the tariff program were delayed or paused and as negotiations progressed, shifting investors’ attention back toward corporate earnings. Over time, as the expected impact of the tariff measures softened and uncertainty eased, most markets rallied further. 

* The decline is measured from the market close on 1 April 2025, prior to the Liberation Day announcement, to the subsequent market low. Recovery refers to the number of trading days required to return to the 1 April 2025 closing level.

Source: Visual Capitalist, December 18, 2025

YTD return in MYR as of Dec 25, 2025 

Overall, 2025 was a great year for investing

Across global markets, 2025 proved broadly rewarding for long-term investors as equity returns were strong in many regions despite bouts of volatility early in the year. Markets such as South Korea led the way with extraordinary gains, reflecting robust investor appetite for technology and semiconductor exposure, while developed markets such as the Euro Stoxx 50, Singapore, UK, and Hong Kong also delivered impressive total returns exceeding 20% in MYR terms. Other Asian markets including Taiwan, Japan, and China’s A- and H-share segments posted double-digit gains, underscoring the resilience of Asia-Pacific equities. Even the broader MSCI All Country benchmark finished comfortably positive, while several emerging markets outpaced the US and regional ASEAN peers. Although a handful of markets such as Thailand and the Philippines lagged, for diversified investors the broad dispersion of returns highlighted the value of geographic and sector diversification in capturing 2025’s upside.

How Ria’s underlying funds fared this year

As of 22 December 2025, all three funds that form the backbone of Ria portfolios delivered positive year-to-date returns, contributing to overall portfolio growth in 2025. ASN Equity Malaysia posted a solid +5.1%, while both ASN Equity Global and ASN Sukuk each gained +4.6% in MYR terms, reflecting broad market resilience and diversified exposure across equity and income-focused assets. As a result, every Ria portfolio finished the year in positive territory, with Moderately Conservative portfolio recording the highest return at +4.6%, while Aggressive portfolio delivered +4.2%, reflecting differences in asset allocation and market dynamics during the year.

Since Ria’s launch in March 2024, portfolio performance has remained aligned with their respective risk profiles, with the Very Conservative portfolio up +7.8%, and the Aggressive and Very Aggressive portfolios gaining +13.8% and +12.9% respectively, underscoring consistent, risk-aligned outcomes for investors.

What to expect in 2026?

Many market strategists enter 2026 with a positive outlook for global equity markets, supported by expectations of continued earnings growth, sustained investment in AI and technology, and the potential for monetary easing in major economies such as the US and Europe. Some forecasts even call for double-digit returns in developed markets and resilient performance in emerging markets in 2026. Despite the generally constructive outlook, risks remain and could introduce bouts of volatility. Geopolitical tensions, policy uncertainty (including ongoing trade issues), elevated equity valuations in certain sectors, and macro headwinds such as slowing growth in Europe all pose potential challenges. Some strategists warn of a normal year where returns may be more modest and market leadership broadens beyond mega-cap technology stocks.

In summary, 2026 is shaping up to be a year of continued growth but with more differentiation across regions and sectors. Strong earnings, policy support, and innovation will likely underpin markets, but investors should also be mindful of persistent risks and a backdrop where volatility and dispersion in returns may rise compared with the rapid gains seen in previous years.

For Ria investors – Stay the course, think long-term

Time in the market beats timing the market – trying to predict short-term highs and lows rarely work in practice, even for professional fund managers. Markets are unpredictable day-to-day, but over the long term they have historically trended upward, and remaining invested through swings gives you the best chance of capturing gains.

Short-term investing carries risk but not investing carries risk too – reacting to daily news or market volatility can lead to missed opportunities. History shows that the best market days often occur during or just after periods of heightened volatility, meaning staying invested matters more than trying to buy the dip.

Use systematic investing to remove behavioral biases – consistent contributions through a regular direct deduction (dollar cost averaging) such as Auto Labur help you invest automatically over time, reduce stress over timing decisions, and take advantage of market fluctuations without guessing the perfect moment.

Invest with conviction for the long haul – if your goals and risk profile are long term, stay focused on your strategy rather than getting distracted by short-term noise. Patience, discipline, and a long-term perspective help your investments grow and compound over years.

Remember, markets will always experience ups and downs, but staying invested and sticking to a disciplined plan has historically rewarded patient investors more than attempting to time market movements. As we enter 2026, we wish you a fulfilling investing journey ahead. Through discipline, patience, and a long-term perspective, we hope Ria continues to support you in building towards your financial goals.