Ria Portfolio Performance Review – May 2025
May was a positive month across our fund lineup, with all funds recording gains. ASN Equity Global rallied 2.47% for the month as compared to the fall in April. ASN Equity Malaysia also yielded 0.89%, bouncing back from April's near-flat performance. ASN Sukuk continued its steady role as our income anchor, delivering a 0.72% return in May.
At the portfolio level, the Very Aggressive strategy posted the largest gain at +1.75% in May underpinned by its heaviest exposure to ASN Equity Global. The Aggressive portfolio followed with a 1.37% gain, while the Moderately Aggressive portfolio also up by 1.15%. The risk averse portfolios continued their steady monthly gains with the Moderately Conservative and the Very Conservative portfolios posting 0.88% and 0.71% gains respectively.
Despite the broad gains in May, year-to-date performance remains mixed across portfolios. The Very Aggressive strategy continues to trail with a -6.08% return, followed by Aggressive at -4.50% and Moderately Aggressive at -2.76%. The Moderate portfolio also remains in negative territory at -1.04%. Meanwhile, the more conservative strategies have held up better, with the Moderately Conservative portfolio gaining 0.52% and the Very Conservative strategy leading with a 2.22% return year-to-date.
Since Ria's launch, our Very Conservative and Moderately Conservative portfolios have maintained solid positive returns at 5.52% and 5.35% respectively. The Moderate strategy has delivered 5.34% cumulative gains, while Moderately Aggressive sits at 5.23% and Aggressive at 4.31%. The Very Aggressive portfolio has recovered from April's slight negative position to post 1.71% cumulative gains.
May's results highlight the importance of diversification and the stabilizing effect of ASN Sukuk in our portfolio mix. While equity markets showed some volatility, the balanced approach across our risk profiles helped smooth out the ride.
Market Commentary – May 2025
Global stock markets bounced back strongly in May, erasing much of the worry that had troubled investors in April. A renewed sense of optimism replaced concerns over trade disputes, pushing most major indexes higher. This upbeat sentiment spread across both developed and emerging markets, driven by the ongoing artificial intelligence (AI) boom, improving global trade dynamics, and the anticipation of more business-friendly policies.
A key turning point came when the US and China jointly announced a temporary reduction in tariffs, providing a three-month window to negotiate a broader trade agreement. Under this arrangement, US tariffs on Chinese goods were reduced to 30%, while China cut tariffs on US imports to 10%. Separately, the US and UK reached an agreement to lower tariffs on automotive and steel products, a narrower but symbolically positive development. These trade breakthroughs helped ease recession fears and supported a broad-based rally across risk assets.
The AI narrative continues to be a major force behind tech sector excitement and broader market enthusiasm. This technological revolution keeps capturing investor attention and capital, reinforcing the positive market tone throughout May. The MSCI World Index reflected this upbeat sentiment, gaining 4.49% in MYR terms for the month and turning its year-to-date performance positive at +0.05% in MYR terms. The rally was especially strong in the US, where an AI-themed surge lifted the S&P 500 by 4.79% in MYR terms. European markets also performed well, with Germany’s DAX jumping 5.11% in MYR terms, bringing its year-to-date return to an impressive 25.49%. The UK’s FTSE 100 rose 3.20%, while France’s CAC 40 advanced 2.38%.
Most Asian markets joined the global rally. Japan’s Nikkei 225 climbed 2.96% in MYR terms, and Hong Kong’s Hang Seng Index recovered 3.28%, indicating that earlier regulatory concerns had eased. In contrast, Malaysia’s FBM KLCI stood out as a weak performer, falling 1.93% for the month and deepening its year-to-date loss to 6.29%. This divergence suggests that domestic factors, such as policy uncertainty or sector-specific challenges, are weighing on investor sentiment, despite the favorable global backdrop.
The shift in risk appetite was also evident in bond and commodity markets. US 10-Year Treasury yields climbed as high as 4.60%, reflecting a sell-off in safe-haven assets as investors turned toward equities. At its May FOMC meeting, the Federal Reserve kept interest rates unchanged, with Chair Jerome Powell expressing confidence in the US economy – supported by strong job growth, resilient consumer spending, and historically low unemployment. The Fed’s tone remained hawkish, with no immediate rate cuts planned, although markets continue to price in the possibility of adjustments later this year.
After months of safe-haven demand, gold prices paused their rally, slipping 1.40% for the month, though still holding a substantial year-to-date gain of 19.22%. Brent crude oil prices stabilized following April’s decline, ending the month largely flat at USD 63.90 per barrel. While recession fears eased, uncertainty about the strength of global demand remained.
Looking ahead, markets are navigating a complex landscape. Much of May’s optimism is built on expectations that the Fed may shift its policy stance later this year to support economic growth. However, this outcome is far from certain. Political and geopolitical risks are also rising. While there is speculation about further changes to trade policy, investors should remain cautious of unverified claims, particularly around tariff timelines.
After a month of soaring global markets, it's tempting to believe the rally will continue indefinitely. But is this a time to invest more aggressively or to start looking for the exits? May’s rally was driven by two major forces: AI-driven optimism and the hope of more accommodative monetary policy. While these themes created strong momentum, Malaysia’s market performance serves as a reminder that investors should not concentrate all their investments in one market. The most prudent approach is to ensure your portfolio is diversified across countries and sectors.
Finally, this sharp rebound from April’s downturn offers an important lesson. Just last month, many investors looked at their declining portfolios with anxiety. Yet those who stayed the course and continued investing through the dip reaped the rewards in May. It reinforces a timeless truth: discipline and consistency, especially in uncomfortable times, are key to building long-term wealth.
Ria Reminder – Those Who Stayed Invested, Reap the Rewards
May brought a powerful turnaround in global markets, rewarding those who kept their roots firm during April’s storm. It wasn’t easy. When portfolios were bleeding red and headlines screamed uncertainty, the instinct to flee felt almost irresistible. But history has a quiet way of repeating itself. Markets punish panic and reward patience.
The recent rebound proves once again that the seeds of long-term growth are often sown in moments of maximum fear. Investors who continued to invest calmly, consistently and without trying to time the market are now seeing their portfolios recover ahead of the curve.
As the saying goes, "The best time to plant a tree was 20 years ago. The second-best time is now." The same goes for your investments. Staying invested during downturns isn’t about being reckless. It’s about trusting the process, your plan and your time horizon.
If the past few months left you feeling tested, revisit your Ria portfolio settings. Are you positioned for the kind of ride you’re willing to sit through? Have your contributions been steady or shaken by the noise?
Log in. Reflect. Realign if needed.
Most of all, keep going. The market will always move in cycles but those who stay the course get to enjoy the harvest.