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Weekly Insight

Consistent With Expectations

25 February 2025
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Consistent With Expectations

Global Markets

European equity funds experienced their most substantial weekly inflows in three years, with approximately $4 billion in capital entering the region through February 19th. This figure, the highest since February 2022, also confirms a second consecutive week of net inflows into European equities.

BofA strategist Michael Hartnett reiterated his preference for global stocks over US equities, citing improved business activity and the relative attractiveness of markets like Germany, China, Japan, and South Korea. He also cautioned that US markets face the risk of an unexpected economic slowdown. Amid a flight to safety, traders fueled a prolonged rally in US Treasuries, resulting in the US 10-year note yield dropping to 4.43%.


Indonesian Markets

Bank Indonesia maintained its benchmark interest rate at 5.75% to stabilize the rupiah amidst global uncertainty and reduced expectations of Federal Reserve rate cuts. While noting potential for rate reductions due to low domestic inflation, the central bank opted for stability. This week, the 10-year government bond yield slightly increased to 6.79%, while the rupiah remained stable around 16,300 per US dollar. The broader stock market (JCI) saw a 2.48% gain, though the LQ45 index rose by a more modest 0.56%.


Weekly Highlight on Economic Indicators


Our Take:

While stock and bond markets saw positive returns this week, our funds demonstrated outperformance relative to their peers. Valbury Prime Dynamic Equity rose by 1.42% (BM: 0.91%), Valbury Investasi Berimbang improved by 1.72% (BM: 0.52%), Valbury Stable Growth Fund gained 0.54% (BM: 0.22%) and Valbury Money Market I increased by 0.10% (BM: 0.10%).

Consistent with expectations, Bank Indonesia, maintained its interest rate, signaling caution amidst global uncertainty. This week's release of the Fed's preferred inflation gauge will provide investors with potential insights into the Fed's policy direction.

The recommendation for investment to our investors (in order) :
Fixed Income Fund > Money Market Fund > Balanced Fund > Equity Fund.


Author : KBVAM Investment Team


DISCLAIMER :
INVESTMENT THROUGH MUTUAL FUNDS CONTAINS RISKS. PROSPECTIVE INVESTORS MUST READ AND UNDERSTAND THE PROSPECTUS BEFORE DECIDING TO INVEST THROUGH MUTUAL FUNDS. PAST PERFORMANCE DOES NOT REFLECT FUTURE PERFORMANCE.

This document was prepared based on information from reliable sources by PT KB Valbury Asset Management. PT KB Valbury Asset Management does not guarantee the accuracy, adequacy or completeness of the information and materials provided. PT KB Valbury Asset Management Indonesia is not responsible for any legal and financial consequences arising, whether against or suffered by any person or party and in any way deemed to be a result of actions taken on the basis of all or part of this document.