Fund Managers Restructure Portfolios Due to Middle East Issues

Bloomberg Technoz, Jakarta - Several local investment managers or fund managers are restructuring their portfolios amidst the escalating Middle East conflict.

Recently, some of these fund managers have increased their cash holdings while lowering their stock holdings to defensive levels.

On the other hand, fund managers are increasing their bets on stocks with exposure to oil and gas, metal minerals, and issuers with US dollar revenues.

"We previously rebalanced our investment portfolios to anticipate signs of increasing geopolitical risks, which were further exacerbated by the US and Israeli attacks on Iran," said Yekti Dewanti, Head of Investment & Research Division at BNI Asset Management (BNI AM), when contacted on Monday (March 2, 2026).

Yekti explained that they have increased their cash holdings while lowering their stock holdings to defensive levels to below 92%.

"We have also added stock securities with oil and gas proxies and US dollar earners, which can benefit when oil and gas prices rise," Yekti said.

Meanwhile, Yekti added, BNI AM has increased its cash portion and reduced the duration of its bond portfolio to maintain volatility in fixed-income mutual funds.

"If stocks related to conglomerates meet these criteria, such as fundamentals and quality stocks, then BNI AM can still consider them in its investment portfolio," he said.

On the other hand, Panin Asset Management is still adopting a wait-and-see approach regarding the escalating conflict in the Middle East. Panin AM Director Rudiyanto said his company is still assessing the potential duration of the conflict in the Middle East.

"Basically, the energy and commodity sectors are among those benefiting this year," Rudiyanto said.

Henan Putihrai Asset Management (HPAM) is also adopting a wait-and-see approach regarding recent dynamics in the Middle East.

Reza Fahmi Riawan, Senior Vice President, Head of Retail Product Research & Distribution, HPAM, said his company is still monitoring geopolitical sentiment on the financial markets.

"What is certain is that we adhere to the principle of our core approach, which is multidisciplinary," he said.

Middle East Sentiment

The Jakarta Composite Index (JCI) opened higher in trading this morning, Tuesday (March 3, 2026). At 9:01 a.m., the index recorded a 43.03 point increase, equivalent to a 0.54% gain, to 8,059.86.

According to Indonesia Stock Exchange trading data, trading volume reached 3.9 billion shares with a transaction value of IDR 6.61 trillion. The frequency of trades was 207,877 times.

Previously, the JCI had fallen 2.66% to 8,016 on Monday (March 2, 2026). The decline was triggered by the decline in large-cap stocks, including BREN, BMRI, and AMMN.

At that time, foreign investors conducted a net sell of IDR 631.02 billion across all stock markets. In the regular market, foreign investors net sold Rp490.53 billion.