Monthly Investor Update July 2025
July 2025 update: Most of our funds outperformed benchmarks as momentum stocks rallied and bond yields fell. Learn our portfolio strategy, market outlook, and what it means for your investments.
July was a good month as most of Simpan funds beat their benchmarks and delivered solid positive returns. The outperformance was attributed to our equity strategy driven by our momentum-driven stock selection.
Monthly Market Recap
Bank Indonesia surprised markets with its third rate cut this year, lowering the BI rate to 5.25% amid stable inflation and early growth warnings.
US inflation rose in June, with signs Trump’s tariffs are reaching consumers. Meanwhile, US Fed kept rates unchanged, citing low unemployment, persistent inflation, and ongoing uncertainty. The US economy rebounded in Q2 2025, growing 3% after a Q1 contraction, helped by lower imports and steady consumer spending.
Portfolio Positioning
Fixed Income
We’re focusing on mid-tenor bonds for their strong risk–return balance, while staying selective with longer maturities. This medium-to-long duration approach aims to capture attractive yields and potential capital gains.
Equities
Recent equity outperformance show our strategy is working. We aim to maintain the same performance trajectory, balancing momentum-driven names with high-quality blue-chip stocks.
Our Outlook
Looking ahead, we expect Indonesia’s economy to stay stable, supported by gradual Bank Indonesia rate cuts aimed at growth while safeguarding the Rupiah. Globally, the Fed is projected to start easing in 3Q25 with two cuts by year-end. We’re also watching the potential impact of Trump’s proposed tariffs, which could shape Fed policy and global trade dynamics.
Thank you for your continued trust, and we look forward to delivering strong results together in the months ahead. Hopefully useful.
Read the full report in English here.
Baca laporan selengkapnya dalam Bahasa Indonesia di sini.