Schroder 90 Plus Equity Fund

In 3Q24, JCI posted a return of +6.57% QoQ with foreign inflow of Rp57tn. Despite sell-off in 2Q24 by foreign investors, 3Q24 started with foreign buying on dips on blue chip names. Despite the political noises throughout the quarter, the market seems to react minimally to them. Bank Indonesia surprised the market by announcing a 25bps rate cut in September ahead of the Fed’s much anticipated 50bps rate cut. On the global front, investors were monitoring the US economic growth prospect, US election, China stimulus and geopolitical tension in Middle East.

In 3Q24, Schroder 90 Plus Equity Fund outperformed the benchmark by 1.12% driven by underperformance of stocks we do not own due to unjustifiable valuation. Our consumer staples holdings performed well driven by foreign interests into the name while earnings expected to be strong. Retail names also did well as proxy of stronger Rupiah. Our OW position in metal mining names also contributed to performance driven by recent China stimulus. Our OW position in one tech name also became a top contributor for the quarter.

Schroder Dana Andalan II

The IndoGB bond market experienced steepening in the third quarter with 20yr rallied by -30bps, 10yr rallied by -61bps and 2yr rallied by  -46bps. Schroder Dana Andalan II outperformed the index, funds has duration higher than the index. Short-end bond benefited, hence attributed to positive returns for the fund. Moreover, corporate bonds also added value with higher yield.

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Schroder Dana Istimewa

In 3Q24, IDXSMCL posted a return of +8.76% QoQ with foreign inflow of Rp57tn. Despite sell-off in 2Q24 by foreign investors, 3Q24 started with foreign buying on dips on blue chip names. Despite the political noises throughout the quarter, the market seems to react minimally to them. Bank Indonesia surprised the market by announcing a 25bps rate cut in September ahead of the Fed’s much anticipated 50bps rate cut. On the global front, investors were monitoring the US economic growth prospect, US election, China

In 3Q24, Schroder Dana Istimewa outperformed the benchmark by 0.56% driven by our consumer staples holdings. Our OW position in property names also support driven by rate cut. Our UW position in one gas distribution company helped due to expectations of weaker margin ahead. Our UW position in cement also helped due to weak cement sales data.stimulus and geopolitical tension in Middle East.

Schroder Dana Likuid

The IndoGB bond market experienced steepening in the third quarter with 20yr rallied by -30bps, 10yr rallied by -61bps and 2yr rallied by  -46bps. Schroder Dana Likuid outperformed the index, as the fund holds governemtn bond that has higher yield than deposit benchmark. Tax imposed on IndoGB is also lower  compared to deposits.

Schroder Dana Mantap Plus II

The IndoGB bond market experienced steepening in the third quarter with 20yr rallied by -30bps, 10yr rallied by -61bps and 2yr rallied by  -46bps.  Schroder Dana Mantap Plus II underperformed index, fund held overweight position in terms of duration and concentrated at long-end of the curve. The steepening of the curve during Sep detracted value for the fund vs the benchmark. 

Schroder Dana Prestasi

In 3Q24, JCI posted a return of +6.57% QoQ with foreign inflow of Rp57tn. Despite sell-off in 2Q24 by foreign investors, 3Q24 started with foreign buying on dips on blue chip names. Bank Indonesia surprised the market by announcing a 25bps rate cut in September ahead of the Fed’s much anticipated 50bps rate cut.

In 3Q24, Schroder Dana Prestasi outperformed the benchmark by 1.64% driven by underperformance of stocks we do not own due to unjustifiable valuation. Our consumer staples holdings performed well driven by foreign interests into the name while earnings expected to be strong. Retail names also did well as proxy of stronger Rupiah. Our OW position in metal mining names also contributed to performance driven by recent China stimulus. Our OW position in property also supporte

Schroder Dana Prestasi Plus

In 3Q24, IDX80 posted a return of +7.73% QoQ with foreign inflow of Rp57tn. Despite sell-off in 2Q24 by foreign investors, 3Q24 started with foreign buying on dips on blue chip names. Bank Indonesia surprised the market by announcing a 25bps rate cut in September ahead of the Fed’s much anticipated 50bps rate cut.

In 3Q24, Schroder Dana Prestasi Plus underperformed the benchmark by 0.24% due to one property stock we do not own due to expensive valuation whose share price rallied. Our OW position in a toll road company also hit our performance due to expectations of higher interest expenses in 2025. Our UW position in coal names also hurt our performance. Our UW in one tech name was among the top detractors in the quarter. Our UW position in one big bank became a detractor due to foreign inflow while we are not comfortable with the bank's PPOP. Our UW position in one retailer name pressured our performance as foreign chased the name despite expensive valuation.

Schroder Dana Terpadu II

In 3Q24, JCI posted a return of +6.57% QoQ with foreign inflow of Rp57tn. Despite sell-off in 2Q24 by foreign investors, 3Q24 started with foreign buying on dips on blue chip names.  Bank Indonesia surprised the market by announcing a 25bps rate cut in September ahead of the Fed’s much anticipated 50bps rate cut. On the global front, investors were monitoring the US economic growth prospect, US election, China stimulus and geopolitical tension in Middle East.

Global fixed income yields finally rallied in 3Q. Fed finally proceeded with 50bps cut that came to a surprise for some market participants and indicated the following cuts will be less aggressive and Fed dot plot suggested 25bps in each November and December meeting.  BI 25bps rate reduction helped to ease short-term rates and BI also reduced the SRBI auction yield range. The IndoGB bond market experienced steepening in the third quarter with 20yr rallied by -30bps, 10yr rallied by -61bps and 2yr rallied by  -46bps.

Schroder Global Sharia Equity Fund USD

US equity surged in 3Q24 with all sectors aside from energy posted positive returns but top performing sectors included utilities and real estate while information technology posted only a small advance. Key US economic data has consistently shown a cooling down in the economy. The Fed announced a 50 basis point (bps) reduction to rates in September. Towards the end of September 2024, equity in China achieved strong gains in the quarter following a raft of stimulus measures by the Chinese government. India and Brazil underperformed affected by the central bank reversing recent monetary easing by raising rates to contain inflation, and the government loosening fiscal spending. Japan market reached a new high early in July as positive momentum persisted before it corrected sharply toward the end of July and a significant dislocation occurred in early August due to the combination of weaker US economic data and the Bank of Japan’s (BoJ) action in raising interest rates, and it stabilised towards the end of August and into September. Eurozone market moved higher in 3Q24. The European Central Bank (ECB) kept interest rates on hold at its July meeting but then cut by 25 bps in September.

Schroder Syariah Balanced Fund

In 3Q24, JII posted a return of +3.00% QoQ with foreign inflow of Rp57tn. Despite sell-off in 2Q24 by foreign investors, 3Q24 started with foreign buying on dips on blue chip names. Bank Indonesia surprised the market by announcing a 25bps rate cut in September ahead of the Fed’s much anticipated 50bps rate cut.

Global fixed income yields finally rallied in 3Q. Fed finally proceeded with 50bps cut that came to a surprise for some market participants and indicated the following cuts will be less aggressive and Fed dot plot suggested 25bps in each November and December meeting. In 2025, Fed dot plot suggested another 100bps cut to 3.4%, and revised up the long-run rate to 2.9% from previously 2.8%. US Treasury 10-year rallied  -62bps to 3.78% in the third quarter. IndoGB also enjoyed the rally, the yield of the 10-year moved -61bps lower to 6.44%. BI 25bps rate reduction helped to ease short-term rates and BI also reduced the SRBI auction yield range. The IndoGB bond market experienced steepening in the third quarter with 20yr rallied by -30bps, 10yr rallied by -61bps and 2yr rallied by  -46bps.

Schroder USD Bond Fund

We saw net bond position by foreign rose by Rp 62.5tn,  percentage of ownership increased from 13.9%. to 14.7%. The significant inflow from foreign to local bond market thanks to favourable US rates and dollar environment in the last three months. BI finally able to lower rates by 25bps to 6.00% in the September meeting, a decision that came a day before FOMC. Significant rally in Rupiah over the last two months helped to give BI confidence to ease. Incoming bid were decent in Rupiah auctions, while government also successfully issued $1.8bn USD and €750mn Euro bonds at the start of the month. The book cover on the USD tranches reached 2.2x. This indicated resilience of Indonesia bonds in the eye of global investors. Schroder USD Bond underperformed the index as there were steepening of the curve and our position concentrated on the long-end of the curve.