Ria Portfolio Performance Review - Feb 2025

Market cycles remain the essential rhythm of investing. In February 2025, we witnessed a telling chapter in this ongoing narrative. ASN Equity Global retreated -1.55%, a stark reversal from January's positive trajectory. Meanwhile, ASN Equity Malaysia showed modest signs of life with a 0.34% gain.

ASN Sukuk, true to its nature, delivered a steady 0.35% return, once again demonstrating why fixed income serves as ballast in uncertain seas.

The resulting portfolio performance tells a straightforward story about risk and reward. Our Very Conservative portfolio, anchored by its 97% allocation to Sukuk, weathered the month best with a 0.30% return.

As we climb the risk ladder, returns progressively deteriorated, with our Very Aggressive portfolio experiencing a -0.72% decline. Yet the longer-term picture reveals a different truth. Since Ria's inception, higher-risk approaches have indeed delivered higher returns.

The Aggressive portfolio leads with an 7.42% cumulative return, closely followed by the Very Aggressive portfolio at 6.85%. This reinforces one of investing's most fundamental lessons: temporary discomfort is often the price of superior long-term results.

Market Commentary – February 2025

In February 2025, global capital markets exhibited mixed performances with MSCI All Country World Index declining by 0.47% in MYR terms, influenced by a combination of economic data releases, corporate earnings reports, and escalating trade tensions.

The S&P 500 declined by 1.20% in MYR terms over the month, while tech-heavy Nasdaq experienced a drop of 2.59% in MYR terms in the same period.

A key driver for these declines is increased trade tensions as President Trump announced a new tariffs on imports from Canada, Mexico, and China which heightened fears of a global trade war.

Additionally, the U.S. economy showed signs of slowing, with consumer confidence dropping to an eight-month low in February.

The “Magnificent Seven” tech giants – Apple, Microsoft, Alphabet, Amazon, Tesla, Nvidia, and Meta – underperformed, with several posting losses amid concerns over high valuations and uncertain growth prospects.

European markets outperformed their U.S. counterparts in February, with London’s FTSE 100, Germany’s DAX, and France’s CAC 40 posting monthly gains driven by investor optimism despite global trade uncertainties.

In Asia, Hong Kong’s Hang Seng Index led global markets with a year-to-date gain of 14.36% in MYR terms, reflecting strong performances in Chinese tech stocks and investor confidence in the region’s growth prospects.

Meanwhile, Malaysia’s FBMKLCI rebounded 1.19% in February, trimming its year-to-date loss to -4.04%, as local equities found support from stable corporate earnings and selective buying by institutional investors.

Overall, February 2025 was characterized by heightened volatility in capital markets, influenced by geopolitical developments, economic data releases, and sector-specific dynamics.

RIA Reminder – Staying the Course Amid Market Volatility

In light of recent market fluctuations, such as those influenced by the U.S. tariff policies, it is natural to feel uncertain about your investments.

However, it is crucial to remember that market volatility is an inherent aspect of investing, and maintaining a long-term perspective is essential.

One effective strategy to navigate these turbulent times is dollar-cost averaging, which involves investing fixed amount regularly, regardless of market conditions (for Ria, this can be done through our Auto Labur feature).

This approach allows you to purchase more units or shares when prices are low and fewer when prices are high, potentially lowering your average cost per unit or share over time.

Additionally, ensuring your portfolio is well-diversified across various asset classes such as equities and bonds can help mitigate risk and enhance potential returns.

It is also advisable to avoid making impulsive decisions based on short-term market movements. Instead, focus on your long-term investment goals and ensure your strategy aligns with your objectives and risk tolerance.

By staying disciplined and committed to your investment plan, you can better weather market volatility and work towards achieving your financial goals.