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It is believed that the performance of the XBNI ETF is optimal even though the stock market is still volatile
Rabu, 23 Mei 2018
KONTAN.CO.ID - JAKARTA. Even though the Indonesian stock market is still experiencing turmoil, BNI Asset Management is optimistic that the BNI-AM Nusantara Index Mutual Fund product MSCI Indonesia Equity Index (XBNI) which was just launched today, Wednesday (23/5) will have optimal performance throughout 2018.
The Director of BNI-AM, Putut Endro Andanawarih said, although he did not mention it in numbers, his party wanted the XBNI ETF to be able to record performance above its reference index by the end of the year. He also assessed that stock market conditions, which are currently still prone to correction, are not an obstacle to the ETF's performance.
This is because the stock market's current correction is more due to external factors such as expectations of an increase in the United States' benchmark interest rate. When market conditions recover, the Morgan Stanley Capital International (MSCI) Indonesia index, which is the reference for the XBNI ETF, is believed to return to positive profits.
"If the market recovers, foreign investors will return to Indonesia and that is good for the movement of the MSCI index. Moreover, many shares in the index are traded by foreign investors," Putut told Kontan.co.id, Wednesday (23/5).
Furthermore, the current trend of weakening in the stock market can be an opportunity for investors to invest amid relatively cheap prices for investment units. For this reason, Putut said that his party would continue to socialize the XBNI ETF to investors so they would want to invest their funds in the product.
In addition to boosting XBNI's ETF managed funds, the socialization was carried out so that investors can understand that ETF transactions in the primary market and the secondary market are equally profitable. "We hope investors understand that this ETF is a lower risk product than buying shares directly," he said.
