RIA Portfolio Performance Review – Dec 2024

December 2024 saw ASN Equity Malaysia maintained its star performance, growing +3.73% and +35.13% YTD while ASN Equity Global was relatively challenged with return in the red but managed to achieve +11.10% YTD. Meanwhile, ASN Sukuk provided stability with a modest +0.19% monthly and +4.18% YTD growth. Monthly returns for the portfolios ranged from +0.21% (Very Conservative) to +1.21% (Aggressive) as higher equity exposure boosted returns in riskier portfolios. On a longer horizon, Very Aggressive topped the chart in 2024 at +20.16% while Aggressive is the winner since Ria launched at +9.22%. Malaysian equity emerged as a standout asset class for the year overall, as global equity volatility slightly tempered long-term gains.

Market Commentary – December 2024

Global equities delivered stellar returns of +15.7% in 2024 but the pullback in December -- the 5th worst in over 35 years -- may signal a rocky start to 2025. Markets reliant on tech stocks to drive their 2024 rallies appear at risk, though financials appear primed to take the baton.

An improving fundamental outlook in China contrasts with negative revisions in India, setting up for potential leadership shift in emerging markets, with China potentially taking a larger role. Developed markets dominated their emerging peers in 2024, up +19.3% vs. +10.5%. Four of the top five performing markets in 2024 were developed (US, Japan, Canada, and Germany) while all five of the bottom markets were emerging (Korea, Brazil, Mexico, Indonesia, Saudi Arabia).

In contrast to the global equity backdrop, Malaysian equities posted +3% return in December and +12.9% in 2024 due to a stable domestic economic environment, attractive valuations, and strong investor sentiment towards local companies.

With the global outlook uncertain, especially in the face of potential tightening policies from central banks in developed markets, sukuk’s role as a low-risk asset class has made it a go-to choice for conservative investors looking to hedge against market volatility.

RIA Reminder – Maximize Your Returns with Low-Cost Investing

Investment costs can significantly impact long-term portfolio growth, which is why low fees are essential to maximizing returns. RIA by ASNB, committed to delivering value and maximizing your financial success, offers one of the lowest fee structures in the market at a flat 0.30% per annum for investment amounts as low as RM100, ensuring more of your money stays invested and benefits from the power of compounding.

By minimizing the cost, you can fully capture the performance potential of your portfolio. Lower expenses mean higher net returns over time, allowing your wealth to grow more efficiently.