Mutual Fund Insight - Bahana TCW Investment Management
Insight from Bahana TCW Investment Management upon their mutual fund products for Q3-2024
Fund Manager, 3rd Party Partner23 Oct 2024
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Bahana Liquid USD

We're excited to announce impressive results for Bahana Liquid USD (BLU) in the third quarter of 2024. BLU has generated a net return exceeding 3.00% net p.a., surpassing expectations in this dynamic market environment.

This robust performance is primarily fueled by high interest rates. As a fund with a significant allocation to time deposits, BLU has capitalized on this trend, delivering attractive returns for investors. Additionally, the strategic inclusion of a small portion of government bonds has further enhanced returns.

Bahana Global Healthcare Sharia

Global equities ended the third quarter of 2024 collectively higher as they recovered from bouts of heightened volatility, including a market selloff in early August following the release of a weaker-than-expected employment report in the United States. The MSCI ACWI Health Care Index returned 6.31% during the third quarter (in US-dollar terms), marginally underperforming the broad MSCI ACWI Index, which returned 6.72%. In the United States, the S&P 500 Health Care sector outperformed the S&P 500 Index, returning 6.07%. The market consolidation trend that we noted last quarter has continued, with Eli Lilly most recently announcing the acquisition of biotech firm Morphic. Eli Lilly also continued to benefit from the Food and Drug Administration’s (FDA) approval of their Alzheimer’s drug. Elsewhere, the dramatic demand growth we’re seeing in weight-loss drugs continued into the third quarter.

Stock positioning within the health care equipment sector contributed to relative results, offset by positioning within the pharmaceuticals sector. In the health care equipment sector, overweight holdings in ResMed and Sonova Holdings contributed, as did underweight positions in Dexcom and Edwards Lifesciences, while an overweight holding in Cochlear detracted. Among pharmaceutical names, an overweight position in Otsuka Holdings Co. contributed, while an overweight position in Novo Nordisk detracted.

Bahana US Opportunity Sharia Equity

Equity in general YTD still booked a positive performance with defensive continue as a winner in 3Q24. Quarter to date, Dow is the winner among the index, and outflow continues in Equity market, but rotate to ETF, prove there is a rotation to value. EM Asia also continues to book positive return on August, driven by Hang Seng. In the last 3 months, we saw flow within US Equity to defensives and commodity:

Healthcare, Industrials and Financial. On the other hand, the dollar index is weakening to 100 with weakening US data, explaining the outflow from Equity market.

Gold, Gas and Coal are preferable commodity in this Quarter. We see defensive commodity such as gold is on the rise on bearish view within less Fed rate cut and inflation story. Coal is strengthened as we see the energy to support AI needs will be supported by AI global growth needs. AI is still the main theme of growth, but the derivatives of the story is the recent outperformer. We see metals and mining sector as the top performer in the last 1 month after China’s names in our global index.

 

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PT Bank DBS Indonesia (“DBSI”) is licensed and supervised by the Indonesia Financial Services Authority (OJK) and a member of the Indonesia Deposit Insurance Corporation (LPS). This publication is not and does not constitute or form part of any offer, recommendation, invitation or solicitation to you to subscribe to or to enter into any transaction as described, nor is it calculated to invite or permit the making of offers to the public to subscribe to or enter into any transaction for cash or other consideration and should not be viewed as such.