Monthly Investor Update January 2026
Market events in January, how our funds performed, and our outlook ahead.
Dear Clients,
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.