Highlights:

#1
September was another strong month, with global equity markets continuing to rally. The S&P500 index and MSCW ACWI Index closed up +3.53% and +3.49%, respectively.

#2
The Airo-BOCA Composite gained +2.59% in September, driven mainly by profit-taking in gold miners and increased exposure to the U.S. and China technology sectors. The decision to close the short position in the technology sector while increasing long exposure proved to be correct. The Airo-Shariah Composite gained +4.77% in August, with performance supported broadly by both the U.S. and global equity markets.

#3
The U.S. government shutdown is ongoing, and it has affected the release of major economic data, namely labor market and inflation reports. This remains one of the key macro risk factors to watch, as it could translate into significant layoffs in the U.S. labor market.

#4
The U.S.–China tariff tension has been a major headline, somewhat affecting global equity sentiment. Although Trump recently softened his tone on tariffs, a potential escalation of the trade war between the two giants could serve as a timely trigger for a short-term correction in global equity markets.

#5
Lastly, the consensus still expects double-digit earnings growth from the Magnificent7 compared with the rest of the S&P 500 constituents. Looking ahead, we may begin to hedge our existing equity positions while continuing to monitor macroeconomic growth, inflation, and other risk factors that could undermine underlying market conditions.

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Dear Valued Investors,

September was another strong month, with global equity markets continuing to rally. The S&P 500 Index and MSCW ACWI Index both up +3.53% and +3.49%, respectively.

The Airo-BOCA Composite gained +2.59% in September, driven mainly by profit-taking in gold miners and increased exposure to the U.S. and China technology sectors. The decision to close the short position in the technology sector while increasing long exposure proved to be correct. The Airo-Shariah Composite gained +4.77% in August, with performance supported broadly by both the U.S. and global equity markets.

Table 1: Airo-BOCA Composite (Sep 2025) Performance in USD Term

Table 2: Airo-Shariah Composite (Sep 2025) Performance in USD Term

The U.S. government shutdown is ongoing, and it has affected the release of major economic data, namely labor market and inflation reports. This remains one of the key macro risk factors to watch, as it could translate into significant layoffs in the U.S. labor market. In addition, a prolonged shut-down may weigh on the consumption sentiment in the U.S. market.

The U.S.–China tariff tension has been a major headline, somewhat affecting global equity sentiment. Although Trump recently softened his tone on tariffs, a potential escalation of the trade war between the two giants could serve as a timely trigger for a short-term correction in global equity markets.

Chart 1: S&P500’s 10-year historical valuation band remains overstretched

Lastly, the consensus still expects double-digit earnings growth from the Magnificent7 compared with the rest of the S&P 500 constituents. Looking ahead, we may begin to hedge our existing equity positions while continuing to monitor macroeconomic growth, inflation, and other risk factors that could undermine underlying market conditions.

Chart 2: Magnificent7 are still expected to contribute double-digit earnings growth

Oct 20th, 2025
​William Yii
CIO, CP Global Fintech Solutions

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Disclaimer: Airo is a brand of CP Global Fintech Solutions Sdn Bhd (“CPFS”), licensed by the Securities Commission of Malaysia as a Digital Investment Management company. CPFS is authorised to carry out the business of fund management incorporating innovative technologies into automated discretionary portfolio management services offered to clients under a license issued pursuant to Schedule 2 of the Capital Markets Services Act 2007.

All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes, and may not reflect actual future performance. CPFS assumes no responsibility for liability for your trading and investment results. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Past results of any trading system published by CPFS, are not indicative of future returns by that system, and are not indicative of future returns which will be realised by you.