USD-Denominated Mutual Funds Maintain Attractiveness Despite Fed Rate Cuts

Strong Dollar Continues to Boost Returns

The outlook for USD-denominated mutual funds remains positive despite expectations of gradual rate cuts by the Federal Reserve. The US dollar's continued strength is creating a favorable environment for investments in dollar-based assets. According to data from Infovesta Utama as of December 16, 2025, several top-performing funds have delivered significant returns.

Top Performing USD Funds

1. Sucorinvest USD Balanced Fund: Achieved 53.41% return YTD, making it the top performer among USD-denominated mixed mutual funds.
2. Ashmore Dana USD Equity Nusantara: Recorded 16.04% YTD return, positioning it as a strong contender in the USD equity fund category.
3. AXA Obligasi Dollar: Delivered 6.98% YTD return, demonstrating stability in the fixed income segment.
4. Manulife Greater Indonesia Fund: Achieved 10.75% YTD return, showing strong performance in the equity category.
5. Panin Dana US Dollar: Recorded 6.24% YTD return, providing balanced growth in the mixed fund category.

Market Outlook and Investment Implications

The strength of the USD is expected to continue benefiting investments in dollar-denominated assets, including US corporate bonds, US stocks, and global money market instruments. Investors looking to capitalize on currency strength while diversifying their portfolios may find these USD-denominated mutual funds particularly appealing. The combination of potential Fed rate cuts and ongoing dollar strength creates an interesting dynamic for investors to navigate.