MSCI Value Rebalancing: Back to 10 Stocks, BBRI Remains the Cornerstone
The MSCI Value Index is one of the global benchmarks for measuring the performance of value stocks that have strong fundamentals, attractive valuations, and long-term appreciation potential. Changes in the composition of this index are important because they serve as a guide for institutional investors and investment products that track it, including Syailendra MSCI Indonesia Value Index Fund (SMSCI).
In August 2025, MSCI has released the results of its rebalancing, which will take effect from 27 August 2025. For SMSCI investors, this is an important moment to see how the portfolio will adapt.
3 Key Points from MSCI Value Rebalancing
1. Back to Focus on 10 Core Stocks
The SMSCI constituents are now consolidated back to 10 stocks with the largest weightings. BBRI remains the standout holding, accounting for 31.69% of the index weight—reflecting its role as the backbone of Indonesia's banking sector.
2. ADRO Removed from SMSCI Constituents
ADRO stock, which previously held a 2.7% weighting, has been removed from the list. It is worth noting that in the previous MSCI rebalancing, ADRO was also removed from MSCI Indonesia Global Standard and moved to MSCI Indonesia Small Cap—indicating a shift in market perception of this stock's liquidity profile and market capitalisation.
3. Minimal Changes to Relative Weightings
Most stocks maintained nearly the same weighting, with the largest increase in ASII (+0.63%) and the smallest in BBNI (+0.08%). This means there is no major shift in the index strategy, but there are slight adjustments to reflect changes in valuations and market capitalisation.
What Does This Mean for SMSCI Investors?
With a leaner composition, SMSCI's focus on 10 high-value stocks is sharpened. BBRI's dominance in the portfolio (31.69%) means that SMSCI's performance will be heavily influenced by positive trends in the banking sector. If the interest rate cut trend materialises in the second half of 2025, large banking stocks such as BBRI could become the key driver of index gains.
Value Investing in Action!
The August 2025 MSCI Value Index rebalancing demonstrates the consistency of a strategy focused on high-value stocks with strong fundamentals. For investors, SMSCI offers a practical way to gain exposure to these stocks without having to pick them one by one.
Ready to capture opportunities from the value investing trend?
Start your investment in Syailendra MSCI Indonesia Value Index Fund (SMSCI) and let your portfolio work for you.
Follow Us on:
PT Syailendra Capital is licensed and supervised by the Indonesia Financial Services Authority (OJK)