RIA: Portfolio Performance Review – Sept 2024
On a fund level, ASN Equity Malaysia stood out with a year-to-date return of 30.33%, while ASN Equity Global and ASN Sukuk achieved 6.98% and 3.75% respectively.
On the portfolio side, all risk profiles experienced modest performance in September, with Very Conservative portfolios leading at 0.35%, while Aggressive and Very Aggressive portfolios faced slight declines of -0.17% and -0.51%, respectively. Year-to-date returns for portfolios ranged from 3.99% for Very Conservative to 15.87% for Very Aggressive.
Market Commentary – September 2024
September 2024 saw a mixed performance across global equity markets as investors grappled with various economic signals and geopolitical tensions.
In the US, major indices experienced volatility due to fluctuating inflation data as the Federal Reserve slashed interest rates by 50 basis points since the early days of the Covid pandemic to a range between 4.75%-5.00%.
The tech sector continued to show resilience, driven by strong earnings from major firms, although concerns over regulatory scrutiny remained a headwind.
In Europe, markets faced pressures from rising energy prices, exacerbated by geopolitical conflicts.
The European Central Bank's cautious stance on interest rates contributed to investor uncertainty, though some markets benefitted from robust corporate earnings in the manufacturing sector.
In Asia, equities showed a more optimistic tone, particularly in markets like Japan and South Korea, driven by a rebound in exports and easing supply chain disruptions.
China's economic recovery continued to be uneven, with policy measures aimed at stabilizing growth providing only modest support.
The Malaysian equity market displayed resilience in September, supported by strong domestic consumption and a recovery in tourism. The FTSE Bursa Malaysia KLCI Index saw a moderate increase as investors turned their attention to sectors poised for growth, such as technology and healthcare.
Key drivers included government initiatives aimed at bolstering the economy, including infrastructure spending and incentives for green technology investments. Additionally, the ringgit's stabilization against the dollar helped ease some concerns related to inflation.
However, external factors, such as global economic uncertainties and commodity price fluctuations, continued to pose challenges.
RIA Reminder – Aligning Investment Goals Through Rebalancing
Rebalancing is an essential strategy for ensuring your investment portfolio remains aligned with your financial goals.
As market conditions change, the value of different assets in your portfolio can fluctuate, potentially skewing your original asset allocation.
Regularly rebalancing helps restore your target allocation, allowing you to manage risk effectively while staying true to your investment objectives.
By systematically adjusting your investments, you can take advantage of market opportunities and maintain a portfolio that reflects your risk tolerance and financial aspirations.
