Ria Portfolio Performance Review – March 2025
Volatility returned with force in March 2025, dragging equity markets lower following the U.S. announcement of wide-ranging tariffs on global imports. These measures were broader and more severe than expected, sending ripples across both developed and emerging markets. ASN Equity Global fell –5.63%, while ASN Equity Malaysia declined –3.35%. ASN Sukuk, however, delivered a stable 0.43% return, once again providing a buffer against broader market swings.
Portfolio returns reflected the diverging paths of asset classes. Our Very Conservative portfolio, anchored by a 97% Sukuk allocation, held steady with a 0.30% gain. As equity exposure increased, performance declined accordingly. The Moderate portfolio returned -1.31%, while the Very Aggressive portfolio fell sharply by -4.49%.
Looking at the longer-term view, the narrative remains intact. Since inception, risk-tolerant portfolios have continued to lead, with the Moderately Aggressive and Moderate strategies delivering cumulative returns of 4.53% and 4.37% respectively. The Very Aggressive portfolio has lagged with a return of 2.05%. This reflects how higher equity exposure, while offering greater upside, also increases volatility. Portfolios with a balanced mix of equity and sukuk have been better positioned to navigate market downturns while still capturing reasonable growth.
The enduring lesson remains: short-term discomfort is often the ‘tariff’ we pay for long-term reward.
Market Commentary – March 2025
In March 2025, global capital markets saw a sharp return of volatility, triggered by the U.S.’s sweeping tariff announcement on global imports. These measures were broader and more severe than expected, sending shockwaves through both developed and emerging markets. The MSCI All Country World Index (ACWI) declined 4.47% in MYR terms for the month, extending its year-to-date loss to 2.05%. U.S. equities were hit particularly hard. The S&P 500 dropped 6.20% in MYR terms, weighed down by trade policy concerns and investor rotation out of high-valuation tech stocks. Tesla, Nvidia, and other members of the "Magnificent Seven" saw continued pressure as investors reassessed risk. European markets did not escape the sell-off. The FTSE 100 declined 0.17% while France’s CAC 40 lost 0.62% in March ni MYR terms, though most retained positive year-to-date performance.
In Asia, market reactions were mixed. Hong Kong’s Hang Seng Index posted a modest 0.49% gain for the month, extending its YTD return to 14.93%. This resilience came despite global volatility and was driven by a strong rally in tech and AI-related stocks. Optimism around the emergence of DeepSeek, a Chinese AI startup, and easing regulatory pressures helped boost heavyweight names like Alibaba and Tencent. The Hang Seng Tech Index surged, backed by strong southbound inflows from mainland China, where investors saw better opportunities in offshore markets amid lackluster domestic A-shares. Beijing’s pro-growth stance, a friendlier tone toward the private sector, and initiatives like the Special Action Plan to Boost Consumption supported sentiment. Foreign investors also re-entered the market, drawn by attractive valuations and clearer policy direction.
In contrast, Japan’s Nikkei tumbled 3.65% in March, bringing its year-to-date return to -6.18% as the market struggled with a stronger yen and fading momentum. Malaysia’s FBMKLCI underperformed, falling 2.19% in March and extending its YTD loss to 6.14%, as foreign outflows and regional de-risking weighed on sentiment. Despite Bank Negara Malaysia holding rates steady at 3.00% and stable domestic fundamentals, broader market pressures dominated.
Heading into April, the implementation of the U.S. reciprocal tariff framework on April 9 adds to market fragility. With a 10 percent baseline levy on all imports and punitive duties approaching 50 percent for countries with significant trade surpluses, particularly those in Indochina, investors are bracing for potential retaliations and disruptions to global supply chains. Early trading in April saw Asian markets open sharply lower, with regional indices falling between 1.5 and 3.0 percent, reflecting growing caution. The decision on April 9 from the U.S. to pause most tariffs for 90 days, while maintaining a 10% global baseline levy, provided some relief to markets. However, the administration’s move to increase tariffs on Chinese imports to 145% - citing concerns over China’s trade practices – has intensified tensions, leading to potential retaliatory measures and further strain on global supply chains.
In summary, March 2025 underscored the fragility of global sentiment amid policy uncertainty and geopolitical risk. As volatility persists, markets are expected to remain reactive to trade developments, central bank responses, and earnings signals. While the road ahead may remain uneven, staying anchored in fundamentals and keeping a long-term lens will be critical.
Ria Reminder – Strong Hands Lead to Steady Gains, and Steady Gains Build Brighter Futures
March brought renewed volatility as global markets reacted to aggressive tariff policies from the U.S., shaking investor confidence across the board. If your portfolio feels the pressure, you are not alone. But it is precisely during times like these that consistency matters most. Investing is not about predicting the next move. It is about preparing for the journey. Market declines may continue in the days ahead but staying the course through regular and disciplined investing such as Auto Labur can be your greatest edge. Dollar-cost averaging works best not when markets are calm, but when they are uncertain.
As portfolios fluctuate, remember the importance of diversification and staying aligned with your long-term goals. Avoid the temptation to time the market or pause your investment plan out of fear. Short-term pain is often the tuition we pay for long-term growth. To borrow wisdom inspired by the greats: The most effective strategy in investing is often the least exciting. Be consistent, be patient, and let compounding do the heavy lifting.
Consistency, not cleverness, is what gets rewarded over time. Stay invested. Stay focused. Stay winning.