Over the Ramadan break, markets remained under pressure as geopolitical tensions in the Middle East continued to dominate headlines. Iran launched further missile attacks on Israel, even as President Donald Trump signaled efforts to initiate a peace plan to end the conflict.

These developments have driven further spikes in the oil market and continued volatility across equity markets, both globally and domestically. For investors, periods of market turmoil like this often prompt the question: what should I do with my portfolio: hold, buy the dip, or sell?

Volatility Can Create Opportunity

History shows that periods of heightened market stress often present compelling entry points. While sell-offs can feel uncomfortable, markets have typically recovered over time.

A recent example can be seen during the tariff-driven volatility in April last year. The VIX (volatility index) surged to around 50, reflecting elevated fear, and major U.S. indices fell to early-year lows. However, investors who stayed the course saw a strong rebound, with the S&P 500 eventually reaching new highs by year-end.

Where Are the Opportunities Today?

While the duration of the current conflict remains uncertain, certain sectors are showing resilience.

Since early 2026, our Investment Team at Simpan has anticipated a rise in geopolitical tensions and has taken necessary actions to position our portfolios accordingly. We have increased exposure to commodity-linked sectors especially coal, which tend to benefit from supply disruptions and rising resource prices, but have also been holding higher levels of cash.

Simpan’s Portfolio Positioning as of March 10, 2026

Our internal analysis of JCI sector performance across different oil price environments (since 2021) reinforces this view. When oil prices exceed USD 100 per barrel, the Energy sector has consistently emerged as the strongest performer across multiple time horizons. In the most recent cycle, the sector delivered approximately 29% forward returns over six months, highlighting its sensitivity to higher commodity prices.

Coal, in particular, remains a key area of focus. With Brent Crude Oil currently trading around USD $109 per barrel, inflationary pressures are rising—especially for oil-importing countries like Indonesia. As energy costs increase, demand for alternative sources such as coal tends to follow.

This trend is also reflected in market flows. In March, foreign investors recorded net outflows of approximately ~IDR 7.14T, largely concentrated in banking names such as BBCA, BBRI, BBNI, and BMRI. At the same time, inflows have been directed toward commodity-related stocks, including gold exposure (EMAS) and coal names such as AADI, ITMG, PTBA, and ADRO.

Portfolio Performance

As of March 27, our equity-oriented portfolios have declined on a year-to-date basis. However, they have still meaningfully outperformed the broader JCI, reflecting the effectiveness of our defensive positioning.

So, What Should You Do?

There is no simple answer. The trajectory and length of the conflict remains uncertain and beyond our control. What is within our control is our investment strategy and how we position portfolios in response.

For now, we recommend maintaining a cautious approach, holding a higher level of cash while gradually rotating into equities as opportunities arise. This allows investors to capture upside when the equity market recovers, without taking on too much risk as the situation is still evolving.

As we approach month-end, our AMP portfolios will undergo their scheduled rebalancing on the first trading day of April, incorporating recent market developments and our updated outlook.

For clients invested in AMP, we recommend staying invested and allowing our team to actively monitor the markets and manage the portfolio on your behalf. The updated allocation will be reflected in the Simpan app once the rebalancing is completed.

Over the past week, escalating geopolitical tensions in the Middle East, coupled with persistently elevated oil prices, have continued to weigh on global markets. Asian equities came under pressure, with the Jakarta Composite Index (JCI) declining by around -5% WoW (as of March 16, 2026).

Brent crude prices remain elevated at around USD 100 per barrel, reinforcing inflationary concerns across Asia—particularly for net oil-importing economies. Higher energy prices are likely to exert pressure on currencies and broader economic outlooks, as reflected in the Indonesian Rupiah, which has hovered near IDR 16,950/USD. Domestically, part of the recent market weakness can also be attributed to seasonal trends ahead of the Ramadan period, during which investors typically increase cash allocations.

Foreign investors remain net sellers, with net outflows of approximately IDR 1.05T over the past week. Notably, foreign inflows were concentrated in commodity-linked names such as EMAS, AADI, ITMG, and ADRO—sectors that have historically demonstrated resilience during periods of geopolitical uncertainty. On the other hand, outflows were concentrated towards banking stocks, including BBRI, BBCA, BMRI, and BBNI.

What’s Ahead?

Markets are closely monitoring the upcoming FOMC meeting scheduled for March 18. Investors will be paying particular attention to commentary from Fed Chair Jerome Powell regarding the impact of geopolitical developments and elevated energy prices on the U.S. economic outlook.

In the near term, continued volatility is likely as markets digest evolving macroeconomic and geopolitical dynamics.

How Did Our Funds Perform?

Amid the broader market sell-off, our equity-oriented portfolios experienced declines, though they continued to outperform the JCI.

What Has Simpan Done?

In light of heightened uncertainty, the Investment Team at Simpan has continued to take measured approaches. Ahead of the Ramadan holiday period, we have selectively trimmed positions and taken profits in names where our conviction has weakened given the shifting macro environment.

However, we retain strong conviction in commodity-related sectors—including coal, gold, and oil & gas—which we believe are well-positioned to outperform in an inflationary and geopolitically sensitive environment.

Our decision to hold higher levels of cash is a tactical move made in anticipation of market uncertainty during the Lebaran period. Once the market reopens following the holiday, we will carefully assess the situation to determine our ongoing investment strategy, and we’ll keep you updated along the way.

We wish you and your loved ones a blessed and peaceful Ramadan.

Escalating geopolitical tensions over the weekend have added further volatility to Indonesian markets. Over the weekend, President Donald Trump signaled plans to intensify attacks and Iran vowed to continue retaliatory strikes, which weakened risk sentiment significantly. As a result, the Jakarta Composite Index (JCI) declined further by -3.27% on Monday (March 9), with heightened uncertainty triggering broad-based selling among investors.

Concerns have also intensified around the Strait of Hormuz, a critical shipping route that carries roughly 20% of global oil supply. Fears of potential supply disruptions pushed Brent crude oil prices above USD $100 per barrel on Monday, raising the risk of inflationary pressures for economies such as Indonesia, which is a net oil importer. At the same time, the Rupiah briefly weakened beyond the 17,000 level against the US Dollar, reflecting rising geopolitical risk and capital market volatility.

Last night, President Donald Trump suggested that the U.S.–Israel conflict with Iran could end “very soon,” though his remarks were mixed, noting that “we have won in many ways, but not enough,” indicating that the situation remains unresolved. Following the comments, oil prices declined to around ~$90 per barrel, although they continue to trade at significantly higher levels compared to a few weeks ago. The JCI also rebounded slightly, closing Tuesday higher by +1.41%. That said, market conditions remain fragile, and both oil prices and equity markets have yet to fully stabilize amid ongoing geopolitical uncertainty.

Simpan’s Views

We have previously advised clients to brace for volatility as the situation continues to evolve. Our portfolio positioning remains the same. We are building higher cash levels where we see the need to, trimming exposure to positions that no longer align with the current investment landscape.

Our portfolio remains highly allocated towards the commodity sectors: particularly coal, gold, and oil & gas names. The existing allocations to energy and commodity producers already provide natural exposure to the areas of the market most directly affected by supply shocks and rising resource prices. This positioning allows the portfolio to participate in potential upside from commodity markets while also serving as a buffer against inflationary pressures that may arise from higher energy costs.

Our Investment Team has published a research paper discussing the evolving geopolitical landscape and the implications to commodities, Indonesian markets, as well as our portfolio positioning. Click here to read more.

Thank you for your continued trust.

February was a volatile month across equities, with the Jakarta Composite Index (JCI) closing out lower by -1.08% MoM. Through our February Monthly Investor Update, we discuss market highlights, how our funds performed, our outlook ahead, and how we’re positioning portfolios.

First, let’s briefly recap what happened across markets in February:

• The JCI rebounded in initial weeks but market sentiment weakened towards month-end, due to rising geopolitical tensions in the Middle East, continued Rupiah weakness, and lack of clarity around MSCI-related issues.

• Despite broader market weakness, the blue-chip index IDX30 closed out higher by ~+2%, suggesting that weakness in the JCI was primarily driven by momentum stocks.

• BI kept rates unchanged at 4.75%, primarily to support the Rupiah which has seen ongoing weakness (edged closer to ~17,000 USD/IDR), driven by heightened global financial uncertainty.

• Moody’s downgraded Indonesia’s credit outlook from “Stable” to “Negative”, largely due to growing warnings about policy uncertainty around Danantara & fiscal policy direction. The news caused a wave of selling across equities and bonds, with 5Y and 10Y yields spiking.

Amid volatility, how did our funds perform?

Despite broader market weakness, all our funds delivered positive performance in February, although our Equity Fund and Bond Fund underperformed benchmarks.

Although the JCI corrected, our equity portfolios gained, as we realized profits opportunistically in names that have seen a sharp run up, particularly within the nickel sector. All our AMP portfolios also saw gains, though risk 2 - 5 portfolios slightly underperformed benchmarks.

For a closer look at the specific stocks we bought or sold, read our February Monthly Investor Update.

In Fixed Income, 10Y and 5Y yields traded higher, with foreign ownership stable at roughly 13% of total issuance.

Simpan’s Views

With the ongoing geopolitical tensions, we expect markets to remain volatile in the near-term. We also expect uncertainties surrounding MSCI policy changes to further weigh on investor sentiment. Furthermore, rising oil prices following the closure of the Strait of Hormuz pose inflationary risks for Indonesia, a net oil importer, which could widen the fiscal deficit and place additional pressure on the Rupiah.

Amid ongoing equity volatility, we are adopting a “risk-off” stance, focusing on increasing exposure to commodity-linked stocks such as gold, coal, and oil & gas, given their earnings resilience and effectiveness as hedges against macro and market volatility.

Though we expect a bearish outlook for March, the recent correction has made equity valuations more compelling, allowing us to gradually increase allocation to equities for some of our AMP portfolios (risk 3 – 5). However, we remain cautious and are not positioning aggressively yet, as we continue to monitor developments closely while the situation evolves.

In Fixed Income, we plan to gradually extend duration further, but are also staying cautious in the near-term due to inflationary pressure risks from higher oil prices, possible yield shocks in the government bond market driven by widening fiscal deficit concerns, and the persistence of elevated interest rates.

Thank you for your continued trust.

The United Kingdom, where about 46% of the population identifies as Christian and only 6.5% as Muslim, is the leading hub for Islamic finance in the Western world.

And it didn’t happen because of religion.

The UK’s Islamic finance sector is worth over £6 billion. In 2014, the UK government issued the Western world’s first sovereign Sukuk (Islamic bond). Today, the London Stock Exchange has hosted more than $50 billion in Sukuk listings.

Even retail investors are participating.

The NEST Sharia Fund, available to any UK pension saver regardless of faith, had attracted over £180 million by 2024.

Most of those investors were looking for exposure to technology, healthcare, and other productive sectors with an ethical framework.

So what is a Sharia mutual fund?

In simple terms, it’s a professionally managed fund that follows a few key principles. These typically include:

• No interest-based income

• Certain sectors are excluded (such as alcohol, tobacco, gambling, weapons, and adult entertainment)

• No excessive speculation

• Investments must be backed by real business activity

Each fund is also reviewed by a Sharia Supervisory Board to ensure it remains compliant.

What does that leave in the portfolio?

In practice, many holdings end up overlapping with ESG-aligned companies — businesses that emphasize responsible governance, sustainable growth, and long-term value creation.

You don’t have to be Muslim to invest

This is an important point: Sharia funds are inclusive investment products, not exclusive to Muslim investors.

Even NEST, one of the UK’s largest pension providers, states clearly:

“Anyone can invest in this fund, you don’t have to be Muslim.”

In practice, many investors choose these funds for the same reason they choose ESG investing. They want their money aligned with certain principles.

Why investors pay attention

Sharia funds exclude highly leveraged companies and speculative sectors.

That often means portfolios tilted toward businesses with strong balance sheets and real economic activity.

According to Refinitiv (2024), Islamic funds have often matched or outperformed conventional funds, partly because they avoided banking stocks that were hit hardest during past crises.

England has already embraced it. Perhaps it’s time more investors take a closer look.

This article is written in support of OJK’s Gerak Syariah initiative, which aims to increase public awareness and understanding of Sharia finance.

Pertama-tama kami ucapkan terima kasih atas kepercayaan Anda terhadap kami sebagai Manajer Investasi Anda.

Kami informasikan bahwa pada tanggal 20 Februari 2026 telah ditandatangani Addendum Kontrak Investasi Kolektif (“KIK”) Reksa Dana Syariah Simpan Cash Syariah Fund (CSF). Berikut perubahan-perubahan yang dimuat pada Addendum KIK tersebut:

1. Penerapan fitur Multi Kelas (multi share class) Reksa Dana Simpan Cash Syariah Fund yang terhitung efektif tanggal 3 Maret 2026 sehingga selanjutnya Reksa Dana ini memiliki 2 kelas unit penyertaan sebagai berikut:

2. Nasabah yang telah memiliki Unit Penyertaan Reksa Dana Syariah Simpan Cash Syariah Fund sebelum tanggal efektif penerapan fitur Multi Kelas (multi share class) maka akan secara otomatis menjadi Unit Penyertaan Reksa Dana Syariah Cash Syariah Fund Kelas A sejak tanggal 3 Maret 2026.

Informasi perubahan di atas telah kami umumkan melalui surat kabar “Ekonomi Bisnis” pada tanggal Jumat 20 Februari 2026 dan fitur masing-masing kelas Reksa Dana Syariah CSF dapat dilihat di prospektus terbaru yang tersedia di website PT Simpan Asset Management.

Apabila Anda membutuhkan informasi lebih lanjut, Bapak/Ibu dapat menghubungi Customer Service kami melalui WhatsApp (+62-812-2993-0408) atau email (support@simpaninvest.com).

Demikian informasi ini kami sampaikan. Atas perhatian dan kerjasamanya, kami ucapkan terima kasih.

Dear Valued Simpan Savings Customers,

First of all, we would like to express our gratitude for your trust in us as your Investment Manager.

We would like to inform you that on February 20, 2026, an Addendum to the Collective Investment Contract (”KIK”) for the Simpan Sharia Cash Syariah Fund (CSF) Sharia Mutual Fund was signed. The following changes are contained in the said KIK Addendum:

1. Implementation of the Multi-Class (multi share class) feature for the Simpan Cash Syariah Fund Mutual Fund, effective March 3, 2026, whereby this Mutual Fund will henceforth have 2 participation unit classes as follows:

2. Customers who already hold Participation Units in the Simpan Sharia Cash Syariah Fund Mutual Fund prior to the effective date of the Multi-Class feature implementation will automatically be converted to Participation Units of the Sharia Cash Syariah Fund Mutual Fund Class A as of March 3, 2026.

The above changes were announced in the “Ekonomi Bisnis” newspaper on Friday, February 20, 2026, and the features of each class of the Sharia CSF Mutual Fund can be viewed in the latest prospectus, which is available on the PT Simpan Asset Management website.

Should you require further information, please contact our Customer Service via WhatsApp (+62-812-2993-0408) or email (support@simpaninvest.com).

We hope this information is helpful. Thank you for your attention and cooperation.

Market volatility and geopolitical risks resulted in a decline of the Jakarta Composite Index (JCI) by nearly 5% yesterday. Meanwhile, commodity prices like oil, gas, and coal prices have increased significantly given the US/Israel-Iran war.

Yesterday, the JCI reached an intraday low of -6.67% but closed out at -4.57%. Meanwhile, our Simpan Sustainable Equity Fund saw a maximum decline of around -6%, before recovering to close the day at approximately -5%, slightly underperforming the JCI. Our Balanced Fund and Amanah Syariah Fund outperformed the JCI, reflecting the benefit of diversified portfolio positioning during volatile market conditions. All our AMP portfolios outperformed the JCI.

The Investment Team is monitoring developments closely, responding tactically, and actively managing the portfolios within our funds. Despite market volatility, our portfolio is well positioned with a higher weighting in commodities (see previous articles). We continued to increase our position in commodity names over the past few weeks in light of heightened geopolitical risk and rising commodity prices.

In the short-term, we expect significant market volatility and price swings as the market adjusts to the development of the Middle Eastern war. We advise clients to brace heightened volatility in their portfolios, while we manage actively across our strategies. When markets stabilize, we think that it is an opportune time to invest further.

Fund Performance

What’s Behind JCI’s Drop Yesterday?

• Fitch downgraded Indonesia’s credit outlook from “Stable” to “Negative”, citing rising policy uncertainty, continued government spending pressures, and reduced national budgets revenue intake. This follows a similar outlook downgrade earlier by Moody’s last month. The news weighed on investor sentiment, triggering foreign outflows of ~IDR 214B.

• Ongoing geopolitical tensions hit Asian markets due to concerns over potential disruptions to the Strait of Hormuz, a critical global oil shipping route. Higher oil prices pressure certain Asian markets, which are net oil importers. This triggered a wave of panic selling in Asian markets; KOSPI saw a trading halt of 5 minutes and dropped -12%.

• Domestic and global inflationary pressures continue to build due to rising oil and gas prices, creating uncertainty in any rate cut expectations.

• Recently, KSEI also released the data of shareholders with ownership of above 1% in a stock in the JCI, prompting investors to reposition their holdings, adding to market volatility.

  Thanks for reading Insights by Simpan Asset Management! Subscribe for more investing and market insights.

You may have seen the headlines across your social media feeds or heard discussions at the dinner table about rising tensions between the U.S. and Iran, as well as recent developments in Mexico. Naturally, this raises questions: Will this affect my investments? Is it time to withdraw? Should I be doing something differently?

In this article, we aim to provide clarity by outlining what’s happening, how we are assessing the situation, and how we believe investors should navigate the current environment with discipline and perspective.

📊 Weekly Market Commentary

The Jakarta Composite Index (JCI) closed the week lower by -3.66% WoW, with the sharpest declines occurring on Tuesday and Thursday, when the index fell by more than 1% on each day. Rising geopolitical tensions weighed heavily on market sentiment, prompting a broad shift toward a “risk-off” stance as investors rotated into safe-haven assets.

Uncertainty surrounding potential U.S. tariff increases added to market pressure, alongside escalating tensions in the U.S.– Iran conflict. Meanwhile, political instability in Mexico also contributed to global risk aversion following heightened national security concerns after the death of cartel leader “El Mencho.”

• Top performing sectors: Financials, Transportation & Logistics

• FX: Rupiah strengthened slightly, with USD/IDR closing out at 16,774 on Friday

• Market flows: Foreign investors were net buyers of ~IDR 1.69T. Top foreign buys were concentrated towards blue-chip stocks: BBRI, BMRI, and TLKM.

Market Snapshot

🗓 Global Headlines

• The U.S./Israel/Iran war escalated over the weekend following reports that Iran’s supreme leader was killed, triggering widespread unrest across the country.

• The attacks were carried out as a joint military operation involving Israel and the U.S., with President Donald Trump stating that the objective was to “eliminate imminent threats from the Iranian regime.”

• Oil markets reacted swiftly; WTI crude prices surged over 5% in early Monday trading to above USD $70/barrel, driven by concerns over potential supply disruptions given Iran’s role as a major oil producer. Further escalation could lead to additional spikes in energy prices.

• Amid heightened uncertainty, investors rotated into safe-haven assets. Gold rose nearly 2% in early Monday trading, hovering around USD $5,350/oz. U.S. equity index futures declined, while the Dollar Index (DXY) edged slightly higher.

🔍 What’s Ahead?

• We expect volatility to remain elevated in the near term, with the domestic market potentially facing further correction amid lingering geopolitical uncertainty, unresolved MSCI-related issues in Indonesia, and a lack of near-term catalysts.

• Key OPEC+ members announced a larger-than-expected oil production hike implemented in April, but analysts warn that the move is unlikely to calm markets, as prices will respond to developments in the Gulf and the status of shipping flows, not to a relatively small increase in output.

• Rising oil prices also pose inflationary risks. As Indonesia is a net oil importer, higher energy costs could translate into increased import prices and upward pressure on inflation.

• In this environment, bond yields may rise while bond prices come under pressure. Commodity prices, particularly gold, are likely to continue upside.

🧠 What Should You Do?

• At Simpan, we have anticipated heightened geopolitical risks since early this year. As a result, our portfolios have been tilted toward commodity-linked exposures, particularly in coal and gold.

• Following recent price appreciation, we have selectively trimmed some commodity positions to lock in profits, while maintaining an overall overweight allocation to the sector.

• We are also holding higher cash levels and adopting a “wait-and-see” approach as conditions continue to evolve. At this stage, we are not deploying additional capital or adding new positions.

• We recommend investors maintain higher cash balances as well. To generate yield on idle cash, consider investing in our Cash Fund or our Smart Cash Products which contains combined exposure to our Cash and Bond Fund.

We wish you a great week ahead!

When I was younger, money felt easy. It came in red envelopes during Chinese New Year, and I spent it without thinking twice.

I grew up in a Chinese household where Chinese New Year meant big family gatherings, endless food, and of course, angpaos. At the end of each visiting day, I would sit down with my cousin and count the envelopes. I would set aside some to buy new clothes or toys, and ask my parents to keep the rest for me.

I’ve always liked spending money. And I still do. The difference is today, I’m more intentional about where it goes.

Back then, most of my angpao money went to things that made me happy for a moment. Collectibles. Clothes. Small indulgences.

Seeing Money Differently

Now, as a working adult, I see money differently. I realize that most of what I spent my angpao money on brought short-term happiness, but no long-term value.

And this year, it changed.

Instead of spending extra money on things that are purely material, I decided to use it to secure my future self. Because the simple truth is: the earlier money starts working, the harder it works.

Putting Numbers Into Perspective

Let’s put numbers into perspective.

Assume I received IDR 5 million in angpao money each year for 5 years. If I had simply kept it untouched, it would total IDR 30 million at the end of the 5th year. But if it had been invested consistently in AMP Enhanced (Risk 3), a neutral risk profile with 5%–50% equity exposure, the outcome could have been significantly different.

The difference came from time, discipline, and compounding.

Notes: Data is based on backtested results

Built by Today’s Decisions

That’s when I realized: my future self is built by today’s decisions.

With Chinese New Year behind us and Ramadan festivities ongoing, many of us receive angpao or THR. It’s easy to spend it on a new gadget, fashion items, or dining out. There’s nothing wrong with enjoying your money but allocating even a portion to investment can change your financial trajectory.

Let’s splurge on things that matter in the long term.

Instead of only buying things that lose value over time, start putting money into something that grows with you. Your future self will thank you.

Invest Through AMP and Get Rewarded

If you’ve been curious about trying AMP, this is the moment. Stay invested and get rewarded IDR 500K through our latest promo. It’s our way of helping you take the first step toward a more secure future.

To celebrate the first month after launching our Actively Managed Portfolio (AMP) service, we’re rewarding users who are ready to start investing through AMP.

From 25 February to 25 March 2026, new users who invest a minimum of IDR 5,000,000 in AMP and stay invested for at least three months will receive extra Reksa Dana worth of IDR 500,000 reward.

Campaign Period: 25 February – 25 May 2026

How to Start? Follow these steps.

1. Start early. Open and invest in an Actively Managed Portfolio in the Simpan app starting 25 February 2026 until 25 March 2026, with an initial deposit of at least Rp 5,000,000.

2. Grow your investment. You must perform at least one manual top-up in the top-up window(s) defined below*. These contributions should bring your total net deposit to Rp 15,000,000 by the end of the challenge.

(Net deposit = total invested amount minus any withdrawals.)

3. Stay invested. To remain eligible, you must stay invested in the Actively Managed Portfolio from your initial investment until 25 May 2026.

NOTE: The reward is limited to a fixed number of participants and reserved for committed investors who complete all requirements successfully.

To maximize your chance of qualifying, we recommend making your initial deposit as early as possible after 25 February.

Eligibility Criteria

• Open to new or existing Simpan users who have not previously activated an Actively Managed Portfolio (AMP).

• Participants must maintain a total net deposit of Rp 15,000,000 in their AMP by the end of the campaign period.

• Each participant is eligible for one reward only. Opening multiple AMP portfolios does not qualify for additional rewards.

• The program is limited to the first 50 eligible participants who successfully fulfill all Terms & Conditions.

Selection Mechanism

• The first 50 participants will be determined based on the earliest completion of the challenge requirements within the campaign period.

• Participants must complete each required step within the specified timeline to remain eligible.

• Failure to comply with any Terms & Conditions will result in automatic disqualification.

• In the event of a tie or dispute, Simpan reserves the right to determine the final recipients based on order of qualification and total net investment amount.

The reward & distribution

Investors who have completed all requirements successfully and have been selected will receive their reward within 14 business days after 25 May, which will be invested directly into your Actively Managed Portfolio.

This is your opportunity to start investing with discipline and get rewarded for it.

To celebrate the launch of our new Actively Managed Portfolio (AMP), we are introducing a challenge in the form of a structured investing program designed to help you build the right habits for long-term wealth creation.

Investors who complete the challenge successfully will receive a IDR 500,000 reward which will be directly credited into their Simpan portfolio.

This program is designed to encourage consistent, disciplined investing, not short-term speculation, by rewarding users who commit to building and maintaining their portfolio over time.

Campaign Period: 25 February – 25 May 2026

How to Start? Follow these steps.

1. Start early. Open and invest in an Actively Managed Portfolio in the Simpan app starting 25 February 2026 until 25 March 2026, with an initial deposit of at least Rp 5,000,000.

2. Grow your investment. You must perform at least one manual top-up in the top-up window(s) defined below*. These contributions should bring your total net deposit to Rp 15,000,000 by the end of the challenge.

(Net deposit = total invested amount minus any withdrawals.)

3. Stay invested. To remain eligible, you must stay invested in the Actively Managed Portfolio from your initial investment until 25 May 2026.

NOTE: The reward is limited to a fixed number of participants and reserved for committed investors who complete all requirements successfully.

To maximize your chance of qualifying, we recommend making your initial deposit as early as possible after 25 February.

Eligibility Criteria

• Open to new or existing Simpan users who have not previously activated an Actively Managed Portfolio (AMP).

• Participants must maintain a total net deposit of Rp 15,000,000 in their AMP by the end of the campaign period.

• Each participant is eligible for one reward only. Opening multiple AMP portfolios does not qualify for additional rewards.

• The program is limited to the first 50 eligible participants who successfully fulfill all Terms & Conditions.

Selection Mechanism

• The first 50 participants will be determined based on the earliest completion of the challenge requirements within the campaign period.

• Participants must complete each required step within the specified timeline to remain eligible.

• Failure to comply with any Terms & Conditions will result in automatic disqualification.

• In the event of a tie or dispute, Simpan reserves the right to determine the final recipients based on order of qualification and total net investment amount.

The reward & distribution
Investors who have completed all requirements successfully and have been selected will receive their reward within 14 business days after 25 May, which will be invested directly into your Actively Managed Portfolio.

This is your opportunity to start investing with discipline and get rewarded for it.

Di Simpan, kami yakin bahwa investasi yang sukses dibangun di atas satu prinsip: time in the market lebih penting daripada timing the market. Kekayaan jangka panjang tidak dibentuk dari mengambil untung jangka pendek, melainkan dari konsistensi, disiplin, dan tetap terinvestasi dalam berbagai kondisi pasar.

Untuk merayakan peluncuran layanan terbaru kami, Actively Managed Portfolio (AMP), kami menghadirkan sebuah kompetisi atau tantangan dalam bentuk program investasi terstruktur yang dirancang untuk membantu Anda membangun kebiasaan yang tepat dalam menciptakan kekayaan jangka panjang.

Investor yang berhasil menyelesaikan challenge ini akan menerima reward sebesar Rp 500.000 yang akan langsung dikreditkan ke dalam portofolio Simpan Anda.

Program ini dirancang untuk mendorong investasi yang konsisten dan disiplin, bukan spekulasi jangka pendek, dengan memberikan apresiasi kepada pengguna yang berkomitmen membangun dan mempertahankan portofolio mereka seiring waktu.

Periode Program: 25 Februari – 25 Mei 2026
Cara Mengikuti? Ikuti langkah berikut:

1. Mulai lebih awal

Buka dan lakukan investasi di Actively Managed Portfolio melalui aplikasi Simpan mulai 25 Februari 2026 hingga 25 Maret 2026, dengan setoran awal minimal Rp 5.000.000.

2. Tingkatkan investasimu

Lakukan minimal satu top-up manual pada periode top-up yang telah ditentukan*.

Total net deposit kamu harus mencapai Rp 15.000.000 pada akhir periode challenge.
(Net deposit = total dana yang diinvestasikan dikurangi penarikan dana, jika ada.)

3. Tetap berinvestasi

Untuk tetap memenuhi syarat, dana harus tetap berinvestasi di Actively Managed Portfolio sejak investasi awal hingga 25 Mei 2026.

CATATAN:
Reward terbatas untuk jumlah peserta tertentu dan hanya diberikan kepada investor yang berhasil memenuhi seluruh persyaratan program.

Untuk meningkatkan peluang kamu lolos kualifikasi, kami menyarankan melakukan setoran awal sedini mungkin setelah 25 Februari.

Kriteria Kelayakan

• Terbuka untuk pengguna baru maupun pengguna lama Simpan yang belum pernah mengaktifkan Actively Managed Portfolio (AMP).

• Peserta harus mempertahankan total net deposit sebesar Rp 15.000.000 di AMP hingga akhir periode program.

• Setiap peserta hanya berhak atas satu reward. Membuka lebih dari satu AMP tidak akan memberikan reward tambahan.

• Program ini terbatas untuk 50 peserta pertama yang memenuhi seluruh Syarat & Ketentuan.

Mekanisme Seleksi

• 50 peserta pertama akan ditentukan berdasarkan penyelesaian persyaratan challenge paling awal dalam periode program.

• Peserta harus menyelesaikan setiap tahapan sesuai dengan timeline yang telah ditentukan untuk tetap memenuhi syarat.

• Peserta yang tidak mematuhi Syarat & Ketentuan akan didiskualifikasi secara otomatis.

• Dalam hal terjadi kesamaan atau perselisihan, Simpan berhak menentukan penerima reward berdasarkan urutan kualifikasi dan total net investasi.

Reward & Distribusi

Investor yang berhasil memenuhi seluruh persyaratan dan terpilih sebagai penerima reward akan menerima reward dalam waktu 14 hari kerja setelah 25 Mei, yang akan langsung diinvestasikan ke dalam Actively Managed Portfolio Anda.

Ini adalah kesempatan Anda untuk mulai berinvestasi dengan disiplin dan mendapatkan reward atas komitmen tersebut.

• Last week saw a shortened trading week, with the Jakarta Composite Index (JCI) largely moving sideways but still closing higher by+0.43% during the week.

• Top sectors that outperformed were Transportation & Logistics (+4.1% WoW) and Basic Materials (+3.2% WoW).

• With no major market-moving catalysts, investor focus has gradually shifted toward upcoming corporate earnings announcements in the weeks ahead.

• Foreign investors were net buyers of ~IDR 221.5B, with top foreign buys being BMRI (+0.98%), BBRI (+1.59%), and UNTR (+4.15%).

BI Kept Rates Unchanged at 4.75%

• The decision aims to support the Rupiah, which has remained under pressure and edged closer to 17,000 (USD/IDR).

• The recent weakness in the currency has largely been driven by heightened global financial uncertainty.

• However, BI reaffirmed its commitment to strengthen the effectiveness of accommodative monetary and macroprudential policies.

• BI also mentioned that they see room for rate cuts in 2026 if inflation stays within its target range of 2.5% ±1%.

What’s Ahead

• Globally, rising tensions between the U.S. and Iran can shift investor appetite to safe-haven assets like gold and silver. Investors should watch out for a potential upswing in gold prices.

Simpan’s Outlook

• Simpan recommends investors to stay invested in our Sustainable Equity Fund, which holds several commodity-linked stocks that may benefit from higher gold prices.

• In addition, holding higher levels of cash is important during periods of uncertainty. Investors may consider our Smart Cash products or Cash Fund as part of a defensive strategy.

• For those who prefer a hands-off approach, our Actively Managed Portfolio offers a convenient solution: simply choose a risk level aligned with your profile, and let our team manage the portfolio on your behalf.

We are pleased to present our January Monthly Investor Update, discussing market highlights during the month, our funds’ performance, and our outlook ahead.

January Market Recap

• The Jakarta Composite Index (JCI) hit a record high but reversed sharply toward month end after MSCI warned of a potential downgrade of Indonesia to Frontier Market status if transparency issues persist. The sell-off, led by conglomerate stocks, pushed the index down 4% MoM.

• Amid geopolitical tensions, investors rushed to safe-haven assets, pushing gold & silver to all-time highs. However, prices dropped sharply after the announcement of Kevin Warsh as the new Fed Chair boosted the US Dollar.

• BI kept rates unchanged at 4.75% to support the Rupiah given ongoing weakness. The Fed also kept rates steady at 3.5% - 3.75% due to softening inflation and cooling labor market.

Simpan’s Funds Performance

• Money Market: Continued to deliver positive and stable returns, outperforming benchmark.

• Equities: Began the period with solid performance but saw weakness toward month-end, impacted by a sudden change in MSCI’s rebalancing criteria.

• Fixed Income: 5Y and 10Y yields moved higher in January, with foreign ownership stable at ~13% of total issuance.

Key Trades of The Month

Our Outlook Ahead

We expect consumption to gradually strengthen in the first quarter in light of the Lebaran holidays. That said, we remain cautious regarding potential changes to MSCI’s index criteria, which could keep the JCI vulnerable in the near term.

Portfolio Positioning

Fixed Income: We are currently maintaining the portfolio duration broadly in line with the benchmark, while remaining prepared to gradually extend duration as higher yields present more attractive entry points.

Equities: We continue to closely monitor market conditions and remain positioned to act decisively should the investment environment change. We had anticipated a market correction following JCI’s strong rally and maintained a cash buffer, reallocating capital toward high-quality blue-chip stocks.

• Last night, Moody’s downgraded Indonesia’s credit outlook from stable to negative, although still reaffirmed their Baa2 rating.

• The downgrade was largely due to growing warnings about policy uncertainty around Danantara & fiscal policy direction, and concerns over policy predictability, governance, and institutional clarity under the current administration.

• Key risks stem from higher reliance on public spending; greater focus on using public spending to drive growth poses fiscal risks, particularly given Indonesia’s weak revenue base.

• However, Baa2 rating is reaffirmed because of Indonesia’s resilience: ~5% GDP growth, deficits below 3% of GDP, and debt levels still below Baa peers, assuming continued policy discipline.

Rupiah Weakened, Bond Yields Spiked

• When Thailand was downgraded last year by Fitch, 10Y bond yields spiked up by 50 bps immediately, and the Thai Baht depreciated by around 6%. The stock market traded sideways for the months after.

• In Indonesia, the Rupiah weakened to ~16,825 against the USD on the news. 5Y bond yields went up to 5.79%, and 10Y yields spiked to 6.43%. In equities, the Jakarta Composite Index (JCI) closed out lower by -2.83% during the first trading session.

• We expect some foreign selling across Indonesian Government Bonds. However, given that foreign ownership currently stands at only ~13%, we do not anticipate a huge significant impact on yields.

• In fact, our earlier stress-test analysis shows that even in a scenario where foreign investors exit entirely, yields would move only marginally, as domestic institutions—Bank Indonesia, insurance companies, and pension funds—are likely to step in and absorb the supply.

• The tables below outline the various stress-test scenarios—showing how far yields could move under foreign selling—and the yield levels at which domestic institutions typically step in to buy.

What’s The Takeaway?

As we’ve mentioned in previous articles, 10Y bond yields approaching 6.5% would signal a good entry point to begin rotating into our Bond Fund. With yields now around ~6.4%, we see a solid opportunity to start topping up gradually. That said, as the news is still very fresh, we recommend staying cautious still, as we do not know how volatile the markets would be in the coming weeks or months. Rather than buying aggressively, a phased and measured approach remains more appropriate for now.

If you’re seeking bond exposure without going fully into bonds, our Smart Cash bundled products are worth considering. They combine our Cash Fund and Bond Fund, offering a boost from government bond yields while keeping risk low and stability high.

• Last week, the MSCI announcement to apply an interim freeze on certain index related changes for Indonesian securities and potential downgrade to Frontier Market (FM) shook markets, with the JCI plunging ~12% WoW and the index experiencing two trading halts.

• The sell-off was broad-based across blue-chips and conglomerate stocks, although conglomerate stocks saw the heavier impact. The IDX30 pared back by -6.2% WoW, and the LQ45 lost -7.6%.

• In terms of flows, foreign investors were net sellers of ~IDR 15.8T last week, with top foreign sells being BBCA, BMRI, and BUMI. Meanwhile, top foreign buys were EXCL, AMMN and BRPT.

• In the wake of last week’s market turmoil, the Commissioner of the Indonesian Financial Services Authority (OJK) and the Head of the Indonesia Stock Exchange (IDX) stepped down, along with several other key figures.

• Indonesian regulators and listed companies now have until May 2026 to make improvements around transparency, ahead of MSCI’s next assessment.

New Fed Chair Triggers Profit-Taking in Precious Metals

• In commodities, both gold and silver dropped sharply following recent rallies. The sudden sell-off occurred after the announcement of Kevin Warsh as the new Fed Chair.

• Warsh is widely viewed as “hawkish”, meaning favoring higher interest rates to curb inflation and tighten money supply, although he has recently stated the need to have more dovish policies to align with the Fed’s goals.

• Even so, markets interpreted his nomination as a shift away from an “ultra-dovish” policy stance relative to other candidates, strengthening the U.S. dollar (DXY strengthened +1.05% after the announcement) and triggering significant profit-taking across precious metals.

When Markets Dropped, What Did Simpan Do?

• At Simpan, we viewed last week’s market sell-off as a buying opportunity and added exposure to several stocks that’s on our watchlist, especially in the commodities sector.

• Earlier, when the JCI was near all-time highs, we had taken profits and held more cash, which we deployed when markets pulled back last week.

• Despite the drop in metal prices, we see this move as a healthy correction and do not think that it is a sign of deeper economic trouble.

• The broader macro outlook remains intact; even though gold and silver prices fell, our conviction did not change: we remain invested in companies with exposure to gold and other metals.

What’s The Takeaway?

Moments like these are a good reminder that it’s important to stay diversified and not put all your eggs in one basket. Markets don’t move in straight lines: a strong rally doesn’t last forever, and pullbacks are bound to happen. In markets like Indonesia, timing the market is important to seize opportunities.

For investors who want to capture these opportunities but don’t necessarily have the time to do so, strongly encourage you to take a look at our new product: Actively Managed Portfolio (AMP).

Simply put, AMP automatically adjusts your reksa dana allocation on a monthly basis, across cash, bond, and equity funds. This means you don’t need to time the market yourself. During periods of market stress, AMP aims to build a more resilient portfolio, minimizing risk and offering drawdown protection.

Today, the Jakarta Composite Index (JCI) dropped -7.3% after MSCI’s announced that they will apply an interim freeze on certain index related changes for Indonesian securities to limit excessive index turnover and manage investability risks while awaiting improvements in market transparency.

During this period, MSCI will not increase foreign ownership limits, add new Indonesian stocks to its indexes, or upgrade stocks to higher index segments. If transparency issues are not sufficiently addressed by May 2026, MSCI may reassess Indonesia’s market status, which could result in a lower weighting in MSCI Emerging Market indexes or even a potential downgrade to “frontier-market” status. MSCI will continue working with Indonesian regulators and market participants and will provide updates as the situation evolves.

This decision follows MSCI’s announcement last October where they stated that they were considering a change to how they measure “free float” – the portion of a company’s shares that are available to trade for the public. Free float concerns have lingered in recent years, with investors stating that some of the country’s largest companies are thinly traded and largely controlled by conglomerates. This causes a concentrated ownership which can lead to sharp price swings and risk of market manipulation.

The news caused a wave of panic selling from investors, with the JCI closing out the day lower by -7.3% and the index experiencing a trading halt during the second trading session. The sell-off was broad based across blue-chip stocks, with the IDX30 falling -5.9%, and momentum stocks. A handful of stocks, especially conglomerate stocks, even hit auto-reject bawah (ARB).

How Simpan reacted and our outlook ahead

We view the recent market pullback as an opportunity and used it to add exposure to names on our watchlist, particularly within the commodities sector. As highlighted in our earlier articles, when the JCI was trading at all-time highs, we took profits in stocks that had rallied and built up cash positions. With markets now correcting, we are redeploying that cash.

We think this is an opportunity to gradually buy the dip, and we encourage investors to consider rotating into our Sustainable Equity Fund. The fund offers a balanced mix of high-quality blue-chip and momentum stocks that we hold with strong conviction and see long-term potential in. In times like this, it’s important to remind ourselves that market volatility is normal—and that staying focused on long-term outcomes is often more effective than reacting to short-term noise.

Last Wednesday, Bank Indonesia (BI) continued to keep interest rates unchanged at 4.75%, again reiterating their stance to prioritize Rupiah stability amid rising geopolitical uncertainty, with the USD/IDR reaching a low of ~16,910 on January 20th.

During a press conference, Governor Perry Warjiyo stated that BI will continue to strengthen the transmission of monetary and macroprudential easing already in place, and sees room for rate cuts in 2026 if inflation stays within the target range of around 2.5%.

JCI Fell -1.36% from Profit-Taking

Although the decision was in-line with market expectations, the JCI saw pressure and dropped -1.36% last week after reaching an all-time high of ~9,164. There were no main headline reasons; rather, pressure was driven by profit-taking especially with some investors resetting expectations ahead of the MSCI rebalancing which will take place on February.

The sell-off was broad based across momentum stocks and blue-chip stocks, with the IDX30 blue-chip index dropping almost 1%. Foreign investors were net sellers of IDR ~3.5T, while domestic investors absorbed supply. Top foreign sells were BBCA, BUMI, and GOTO, while top foreign buys were BBRI, ADRO, and AASI.

Gold & Silver Continue to Reach New Highs

Geopolitical tensions continued to persist last week, with President Donald Trump threatening 100% tariffs on Canada and European countries if they do not agree to a deal regarding U.S.’ plans to invade Greenland. This sparked fears of a global trade war, and amid rising geopolitical tensions, investors continued to rotate into safe-haven assets.

The DXY (U.S. Dollar index) fell almost -1.67% and closed at 97.48 on Friday, making dollar-priced metals like gold and silver more attractive to foreign buyers. Gold (XAU/USD) reached a new high of USD $5,111/oz, while silver (XAG/USD) also reached a new high of USD $110/oz.

Click here to read more about how Simpan is positioned.

China PMI Outlook

We are closely monitoring China’s official manufacturing PMI number, which will be released on January 31st. For context, PMI (Purchasing Managers’ Index) is a monthly economic indicator tracking manufacturing/services health. A PMI number of above 50 suggests that the economy is expanding, while a number of below 50 suggests that the economy is contracting. December 2025 number was 50.1, but in 2026, questions remain on whether manufacturing can sustain this momentum amidst ongoing structural headwinds in the property sector and weak domestic consumption.

As one of Indonesia’s largest trading partners, China’s PMI is an important signal for Indonesia’s import–export outlook. An expansionary PMI (>50) suggests rising factory output and stronger demand, which typically supports Indonesia’s exports, particularly commodities such as coal, nickel, and palm oil. Conversely, a contractionary PMI could weigh on export demand and may add pressure on the rupiah through weaker trade dynamics.

How Did Markets React?

Major U.S. indices such as the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average, have seen volatile trading, although their performance is still up YTD. Meanwhile, Indonesia’s equity market has not seen any material impact, with the JCI continuing to break record highs, up +6% YTD (as of January 20th, 2026).

In periods of heightened uncertainty, one question naturally comes to mind: Where should I invest my money?

Precious Metals Steal The Spotlight

During times of geopolitical uncertainty, investors tend to rotate into precious metals such as gold and silver. They are largely regarded as “safe haven” assets, and tend to preserve value when risk appetite declines. In 2026, these metals have seen strong price performance, with silver seeing the largest gains (+29.9% YTD).

Several distinct factors have contributed to the recent rally across these commodities:

• Gold & Silver: Demand has increased as investors seek safe-haven assets amid rising geopolitical risks and market volatility.

• Nickel: Prices have been supported by supply expectations, particularly concerns around potential production cuts from major producers such as Indonesia.

• Tin: Tin prices have climbed amid supply disruptions in Indonesia, partly driven by government crackdowns on illegal mining activities.

What Is Simpan Doing?

In Indonesia, there are a lot of commodity-linked stocks, many of which have benefited from the recent upswing in metal prices. Within Simpan’s funds, we identified this trend early.

We are heavily invested in EMAS, which provides direct exposure to gold, and TINS, where improving industry discipline, particularly efforts to address illegal mining, has strengthened the long-term outlook. Following the sharp price appreciation, we have trimmed a portion of these positions to lock in gains. That said, their weightings within our funds remain meaningful, reflecting our continued conviction in the broader theme.

At the same time, we are closely monitoring developments in nickel. While prices have risen, we remain patient and are watching for potential pullbacks, which could present more attractive entry points into selected names.

To address this, we’re excited to announce that we have launched Actively Managed Portfolio (AMP) in the Simpan app. Below is a brief breakdown of what AMP is, how it works, and the problems it aims to solve.

The Problem: Mutual Fund Investing Can Feel Overwhelming

Investors in Indonesia are faced with an overwhelming number of products, each marketed differently. Yet, most share the same limitation: once you invest, guidance stops. Same is the case for one-time robo-advisory models: they may help with initial portfolio construction, but they offer limited support as market conditions evolve.

Consider a scenario where your equity fund is up +5% over the past week. You probably start to wonder: should I keep holding or take profits now? Will the markets continue its momentum, or is it due for a pullback? Without a clear framework, investing can feel stressful, even though it is meant to be a passive way to grow wealth.

Many investors try to manage portfolios on their own, but it’s not easy. Humans are prone to trading biases, which can cause investors to deviate from their planned investing strategy, react to short-term headlines, and make FOMO-driven decisions that often result in losses.

The Solution: Actively Managed Portfolio (AMP)

At Simpan, we recognized this challenge early on and built Actively Managed Portfolio: an automatic rebalancing strategy which combines data-driven technology and the expertise of our Investment Team to form a forward-looking view of market conditions and adjust portfolio asset allocation accordingly at the mutual fund allocation level. AMP also caters to different risk profiles, so your portfolio will only include instruments you are comfortable with.

By building AMP, our goal is to reduce the burden for investors by handling the heavy lifting. We recognize that individuals have other priorities, which is why AMP allows you to invest in a purpose-built portfolio while we manage the ongoing decisions. Ultimately, the goal of AMP is not to maximize returns or predict the future, but to provide a clearer framework to decide next investing steps, creating a resilient portfolio that minimizes risk and volatility during differing market conditions.

How AMP works

The technology behind AMP relies on a Tactical Asset Allocation (TAA) approach, actively adjusting the proportion of reksa dana assets (equities, bonds, money market) every month based on market conditions, rather than sticking to a fixed allocation at all times. The client’s portfolio of reksa dana is rebalanced each month automatically, with no switching fees and nothing done from the client’s end.

To learn more about the methodology and implementation behind AMP, download our research paper by clicking the button below.

Download our AMP research paper

Whether you are building a business, raising a family, or simply navigating a busy life, your time and attention are valuable. AMP is designed to work quietly in the background, helping your capital grow steadily, so you can focus on other priorities. We sincerely hope AMP can be a trusted partner on that journey. Stay tuned for the upcoming launch.

Yesterday, the Jakarta Composite Index (JCI) saw a sharp sell-off intraday, falling by nearly -3% during the second trading session before recovering as investors stepped in to “buy the dip.” The index ultimately closed out the day lower by -0.58%. The top lagging industries were Infrastructure (-2.37%), Technology (-1.68%), and Energy (-1.39%). The weakness was largely driven by momentum stocks. While several blue-chip names such as BBCA (-1.23%) also declined, the IDX30 managed to close slightly higher by +0.28%. Despite the sell-off, foreign investors were net buyers of ~IDR 205B. Meanwhile, the USD/IDR weakened to around 16,874.

Globally, negative sentiment increased amid rising geopolitical uncertainty, particularly following escalating U.S. tensions with Venezuela and Iran. Against the backdrop of heightened conflict involving oil-producing countries, crude oil prices moved higher, with WTI closing at USD $59.83 per barrel on Monday. The recent announcement of a criminal investigation into Fed Chair Jerome Powell further weighed on risk sentiment. These global headlines prompted investors to adopt a risk-off behaviour, triggering volatility and capital outflows across emerging markets, including Indonesia. Instead, investors rushed to safe haven assets, with gold surging to a fresh record high of USD $4,630/oz and silver again breaking a record high and reaching USD $86/oz.

Domestically, market speculation was fueled by a foreign broker’s headline suggesting that Indonesia’s fiscal deficit could exceed 3% this year, following the announcement that last year’s deficit came in higher than expected at 2.9%. While many market participants view this projection as unrealistic, the MoF and President Prabowo have indicated openness toward widening the 3% deficit cap several times last year. In addition, investors likely engaged in profit-taking after the recent JCI rally, as well as ahead of the MSCI rebalancing announcement scheduled for February.

Simpan’s View

Following the recent strength in the JCI, we have been actively trimming our exposure to momentum stocks and de-risked, maintaining higher cash levels since December. This positioning was intentional, allowing us to deploy cash when opportunity arises. In response to the recent pullback, we saw it as an opportunity to buy the dip.

That said, we recommend investors to start rotating into our Sustainable Equity Fund. We view the current correction as healthy, especially after the JCI’s rally to record highs. Our Equity Fund contains a balanced exposure to high-quality blue-chip stocks, as well as select momentum names supported by strong liquidity and flows. Looking ahead, we will continue to closely monitor market conditions and will keep investors informed if more attractive entry points emerge.

We are pleased to present our December Monthly Investor Update, discussing market highlights during the month, our funds’ performance, and our outlook ahead.

December Market Recap

• The Fed cut rates by 25 bps due to rising unemployment, while BI kept rates unchanged at 4.75%. Click here to find out why.

• The Jakarta Composite Index (JCI) saw some volatility from profit-taking, but closed out higher by +1.26% MoM. Gains remain concentrated in momentum stocks, while blue-chips stayed quiet.

• Bank of Japan (BOJ) raised rates to a 30-year high, marking a step towards policy normalization due to rising inflation. The decision triggered a sell-off in bonds, with yields reaching 26-year highs.

Simpan’s Fund Performance

All funds had positive performance in December, with all outperforming benchmarks except for the Bond Fund.

• Money Market: Positive and stable returns, outperformed benchmark.

• Equities: Strong gains due to our exposure to momentum names and active position management, which allowed us to capture upside while controlling risk.

• Fixed Income: Gained slightly, but underperformed benchmark due to our conservative duration positioning.

Key Trades of the Month

Below is a quick snapshot of our key trades during the month. For the full story behind each move, check out our December Monthly Investor Update.

Our Outlook

In January, we maintain a constructive outlook but remain aware of near-term risks. Seasonal patterns in January indicate stronger equity performance; however, a potential uptick in December inflation from stronger consumption could constrain BI’s policy flexibility. Globally, we are watching out for U.S. labour market and inflation data, which will be key in shaping the Fed’s decision.

Here’s how we’re positioning our portfolios:

Fixed Income: Continue to keep our portfolio duration conservative and below the benchmark duration, due to rising fiscal deficit risk.

Equities: Have locked in gains from recent rallies and are keeping higher levels of cash. We remain confident in high-quality blue-chips, but selective on momentum stocks.