What If You Didn’t Have to Overthink Your Reksa Dana Portfolio?
Introducing Actively Managed Portfolio (AMP), a portfolio management strategy built for Indonesia's dynamic markets. Stay tuned for the upcoming launch on Simpan app.
Over the past year, we’ve listened closely to our investors and observed firsthand how difficult mutual fund investing in Indonesia can be, especially when markets change and guidance is limited.
To address this, at the end of the month we are launching 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.
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.