In a year, BNI-AM Makara Investment earns a return of 8.28%

KONTAN.CO.ID - JAKARTA. By placing the majority of assets in corporate bonds, the BNI-AM Mutual Fund Makara Investment Fixed Income Fund from PT BNI Asset Management has been able to record positive returns in the past year. In fact, its performance exceeds the average performance of fixed income mutual funds.

BNI-AM Fixed Income Makara Investment Mutual Funds are mutual funds that are in the category of endowment funds or endowment funds. For information, enduring mutual funds are mutual fund products issued by investment managers with certain institutions, foundations or organizations.

BNI-AM Mutual Fund Fixed Income Makara Investment is the result of collaboration between BNI AM and the University of Indonesia. The policy in enduring mutual funds is the distribution of the sharing management fee for managing the mutual funds. So, from the total management fee which is set at 1%, the University of Indonesia will get a portion of 33% of the collected fees.

Not only as an investment instrument, through enduring mutual funds, investors have the opportunity to contribute social funds to certain institutions. These characteristics make enduring funds not only focus on achieving high returns, but also on stable performance.

However, the performance of the BNI-AM Makara Investment Fixed Income mutual fund shows that by holding the majority of assets in corporate bonds, this mutual fund is able to consistently perform above average. Based on Infovesta Utama data as of April 3 2018, the Makara Investment mutual fund recorded a return of 8.28% for a period of one year. Meanwhile, the average performance of fixed income mutual funds was only 6.73% in the same period.

"Higher performance was obtained from corporate bonds which do have a higher coupon than government bonds," Putut E. Andanawarih, Director of BNI Asset Management, Wednesday (4/4).

Based on the fund fact sheet as of the end of February 2018, the contents of this mutual fund portfolio consisted of 75.5% corporate bonds, 16.6% government bonds and 7.9% cash or money market.

Putut said that the commitment to maintain this enduring mutual fund is stable performance. A heavy allocation of investment assets in corporate bonds was chosen to maintain this commitment. When compared to government bonds, corporate bonds do have a lower level of volatility.

More investment assets placed in corporate bonds make this mutual fund have a 73% portion in bonds with a tenor of less than five years. Meanwhile, 22% is in bonds with a tenor of five to 10 years, and only 5% of investment assets are in bonds with a tenor of more than 10 years.

In selecting corporate bonds, Putut requires that the minimum corporate bond rating is investment grade. In addition, the selected corporate bonds usually come from the banking sector.

Meanwhile, the government bonds selected in this mutual fund are bonds with a tenor of five to 10 years. Of course, for the reason that the tenor is shorter, the risk of volatility is minimal and performance can be maintained.

As of March 2018, the funds under management of this mutual fund reached IDR 286.3 billion. Putut targets the growth of the managed fund as much as possible. Until now, 80% of the managed funds have been contributed by institutional investors and 20% by retail investors. Even though the target of this mutual fund is the UI academic community, this mutual fund is open to the public.

"If there are people outside UI who are interested in entering this mutual fund because they see fairly good performance, of course they can," said Putut. BNI AM sets a minimum investment in this mutual fund of IDR 100,000

Link. http://investasi.kontan.co.id/news/setahun-bni-am-makara-investasi-raih-return-828