BNI-AM officially launched its first ETF product

KONTAN.CO.ID - JAKARTA. BNI Asset Management officially launched its first Exchange Traded Fund (ETF) product on the Indonesia Stock Exchange on Wednesday (23/5). This product itself is titled the BNI-AM Nusantara Index Mutual Fund ETF MSCI Indonesia Equity Index with the code XBNI.

This ETF invests in 29 large-cap issuer shares listed on the Morgan Stanley Capital International (MSCI) Indonesia index for the period November 2017 to May 2018. The composition of the investment portfolio contained in the index is in the range of 80%--100%.

Meanwhile, a minimum of 0%-20% of the XBNI portfolio is allocated to domestic money market instruments with a tenor of no more than 1 year.

BNI-AM Director Putut Endro Andanawarih said the aim of launching XBNI was to enrich investment choices in the MSCI index, whose shares are widely traded by global investors.

He also said that XBNI only invests in stocks that have large and medium capitalization. This is because this product also emphasizes the factor of high stock liquidity as a driving force for its performance. "We did not choose the shares in MSCI Small Cap," Putut told Kontan.co.id, Wednesday (23/5).

According to him, the XBNI ETF is suitable for investors from various backgrounds, both retail and institutional. "This ETF can be an attractive investment choice for novice investors who have limited funds," he added.

Investors can purchase XBNI ETFs on the primary market through participating dealers, namely PT Indo Premier Sekuritas, with a minimum of 1 creative unit or 100,000 investment units. Meanwhile, in the secondary market, investors can buy this ETF in a minimum of 1 lot or 100 units of participation through any broker on the IDX.

Each ETF participation unit is offered at the same price as the initial Net Asset Value of IDR 1,000. This number is valid on the date of the first submission determined by BNI-AM.

Furthermore, the price for each unit of the XBNI ETF is determined based on the market price on the IDX. For the record, the XBNI ETF is the fourth ETF product listed on the IDX throughout 2018.