Investment Product I Targets Managed Funds To Reach Rp 1 Trillion BNI-AM Equity Mutual Fund Emissions

JAKARTA - PT BNI Asset Management (BNI-AM) has issued the BNI-AM ETF MSCI Leaders Indonesia (XBES) mutual fund, with a target of managing funds (Asset Under Management/AUM) of 1 trillion rupiahs. This ETF mutual fund, entitled ESG (Environment, Social, and Governance) consists of constituent stocks of companies that have good fundamentals, record positive investment performance, and are sustainable for the long term.

“We launched XBES to provide product variants for investors who want to optimize investment performance with an issuer's investment portfolio with good fundamentals and considering ESG aspects. This ETF is traded through the primary market and the secondary market,” said the President Director of BNl-AM, Reita Farianti, in Jakarta, Thursday (9/1).

She said this ETF mutual fund contains shares of companies that have the best ESG scores in their respective sectors. The ESG factor has now become one of the bases for making decisions for many investors, especially institutions to determine the direction of their investment so that BNl-AM needs to issue an ETF with the theme of ESG. Another reason is that companies that can generate high and sustainable returns in the long term are companies that have ESG management.

Previously, according to Reita Farianti, in mid-2018, BNI-AM also issued the first ETF mutual fund product, namely the BNl-AM Nusantara ETF MSCI Indonesia Equity Index (XBNI) Mutual Fund and managed to collect managed funds of one trillion rupiahs. Referring to that, she also hopes that the funds managed by this ETF can penetrate one trillion rupiahs. Meanwhile, XBES is the 39th ETF mutual fund that has been listed and traded on the IDX.

According to Reita, the first published ETF mutual funds had a more general theme and used financial ratios with common constituents in the MSCI Index. “After that, we can only list the second ETF (mutual fund) with a different theme. Yesterday, the theme was general, while today the theme is using the best in class companies from an ESG perspective, the research results are global MSCI for companies in Indonesia,” she explained.

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Responding to the turmoil that has occurred in the mutual fund market in recent times, Rieta stated that there is indeed shifting in appetite. Many investors who were injured, both institutional and retail, who bought through online platforms were also affected, even minus more than 50 percent. BNI-AM also tries to start this year by providing a new atmosphere, one of the products of principal investment responsibility. The new products are expected to have more good corporate governance (GCG).

However, the turmoil did not affect BNI-AM's managed funds, because Rieta said, throughout 2019 his party carried out heavy selling of money market mutual fund products, protected mutual funds, fixed income mutual funds, and index funds and ETFs, namely IDX30 and ETF MSCI. Even the stock mutual fund product that was launched in early 2019, namely the aggressive mutual fund, happened to have a pretty good return compared to the benchmark.

"So this one year of building trust seems to be successful, so hopefully these investors can learn from yesterday's investment turmoil, then add to our ability to market products," she said. yni/E-12