RIA Portfolio Performance Review – Jan 2025

In January 2025, ASN Equity Global delivered a solid performance with a positive return of 3.75%, contributing to its modest historical performance. In contrast, ASN Equity Malaysia remained in negative territory for the month but posting an impressive 14.25% return since Ria’s launch.

ASN Sukuk maintained its steady and reliable returns, yielding 0.39% for the month and 3.42% since Ria’s inception. Despite ASN Equity Malaysia's recent underperformance, which led to negative monthly returns across portfolios — particularly affecting those with higher equity allocations — all portfolios have generated positive cumulative returns since inception. The robust performance of the global equity helped cushion the impact of shortfalls from Malaysian equity, slightly tempering overall portfolio losses in the short term.

Market Commentary – January 2025

Innovation in artificial intelligence, clean energy, and semiconductor technologies fuelled growth in global equity markets. The NASDAQ Composite Index gained 4.5% in January 2025, outpacing broader indices like the S&P 500, which rose by 3.2%. In contrast, Malaysia’s FBMKLCI Index remained under pressure, closing the month with a -5.2% return, primarily driven by concerns that growth expectations and valuation for AI and data centre proxies may be overstated, after the launch of Chinese AI startup DeepSeek and new AI diffusion regulations from the US. Market sentiment was further dampened by concerns over the US decision to impose tariffs of 25% on Mexico and Canada and 10% on China.

For Malaysia, the government’s efforts to boost private investment through infrastructure projects and incentives for foreign direct investment (FDI) have yet to yield significant results. Additionally, the ringgit depreciated by 2.3% against the US dollar in January, closing at RM4.65 to the dollar, increasing import costs and pressuring local businesses. Average yield on 10-year government bonds rose to 4.2% in January 2025, up from 3.9% at the end of 2024, indicating that fixed income instruments remained attractive to risk-averse investors amid rising interest rates globally, as central banks maintained a cautious stance to combat inflationary pressures.

RIA Reminder – Start Small, Think Big

You don’t need a large sum to start investing. Even small, regular contributions can grow into significant wealth over time thanks to compounding investment and consistency. Starting small also helps you build confidence, minimize risk, and develop healthy financial habits. As your income grows, increase your contributions to accelerate progress toward your goals. Remember, every great journey begins with a single step — start today, no matter how small, and let time work for you.