BNI Asset Management Launches the First ETF Product

Bisnis.com, JAKARTA - For the first time, PT BNI Asset Management presented an Exchange Traded Fund (ETF) mutual fund product, namely the BNI-AM Nusantara Index Mutual Fund MSCI Indonesia Equity Index (XBNI).
Main Director of BNI Asset Management Reita Farianti said the purpose of launching this product was to accommodate the needs of investors who want mutual funds that are actively traded.

He explained that Morgan Stanley Capital International Limited (MSCI) was used as a reference because this index represents approximately 80% of Indonesian stock market capitalization and has a high free float.

"Especially for ETFs with the MSCI reference index, we have just issued them, so we hope this ETF can be an attractive investment option in the passive mutual fund category," he said, Wednesday (5/23/2018).

For investors who buy this mutual fund product, they will then invest in a portfolio with a minimum investment composition of 80% -100% of the Net Asset Value (NAV) placed in 29 stocks included in the MSCI Indonesia index.

The remaining 0% -20% is invested in domestic money market instruments with a maturity of no more than one year, or deposits in accordance with applicable laws and regulations.

"The advantage of XBNI is that it has a diversification of shares at once, because it consists of 29 issuers included in the MSCI Indonesia index," he continued.

For purchases on the primary market, the minimum transaction is 1 creation unit which is equivalent to 100,000 units of participation. Purchases on the secondary market can be made starting from 1 lot or the equivalent of 100 units of participation.

Meanwhile, buying and selling of XBNI on the secondary market can be done through a trading mechanism on the IDX through exchange member brokers. BNI Asset Management appointed Indo Premier Sekuritas as participating dealers.