Jakarta's first mutual fund works to whet appetite<\/p>\n
JAKARTA (JP): An executive of PT BDNI Reksadana, the first
\nmutual fund listed on the Jakarta Stock Exchange (JSX), said that
\nin the medium term (three to five years) a mutual fund is able to
\noffer a return of 16 percentage points higher than time deposits.<\/p>\n
\"Based on our experience at BDNI Reksadana, I would say that
\nwithin three to five years, the net asset value of a mutual fund
\ncan grow by 35 percent per annum as compared to about 19 percent
\nby time deposits,\" said a director of BDNI Reksadana, Karmady
\nArief.<\/p>\n
Karmady told reporters here yesterday that in three and a half
\nmonths, the net asset value of BDNI Reksadana has grown by 8.14
\npercent and in twelve months it may increase by 27 percent.<\/p>\n
BDNI Reksadana was listed on the JSX on Oct. 16 last year
\nafter offering 600 million shares with a face value of Rp 500
\n(21.6 U.S. cents) on the primary market.<\/p>\n
The face value of Rp 500, which was also the fund's share
\nprice, represented the per share net asset value of the fund.<\/p>\n
\"On Jan. 26, the per share net asset value had increased by
\n8.14 percent to Rp 540. If you had put Rp 500 in a time deposit
\non Oct. 16 last year, it might grow to only Rp 525 by Jan. 26,\"
\nsaid Karmady.<\/p>\n
Karmady said that as the first investment fund, the BDNI
\nrecord of growth, may help improve the public's awareness,
\nparticularly retail investors and pension funds, of the benefits
\nin investing in stock markets through mutual funds.<\/p>\n
\"We have to recognize that the interest rates in the country
\nare high enough to attract investors to put their money in time
\ndeposits. But, we at BDNI Reksadana can prove that with
\nprofessional fund management, we can offer a higher return than
\nthat of time deposits,\" he asserted.<\/p>\n
Investment<\/p>\n
He explained that BDNI Reksadana allocates 55 percent of its
\nportfolio investment to the equity market and the remaining 35
\npercent to the money market.<\/p>\n
The Indonesian Capital Market Supervisory Agency (Bapepam)
\nallows a mutual fund to invest in stock markets up to a maximum
\nof 85 percent of its net asset value and a minimum of 15 percent
\nin the money market.<\/p>\n
The new capital market law allows both open-end and closed-end
\nmutual funds. The difference between the two investment funds is
\nthat the managers of open-end funds are obliged to buy shares
\nsold by shareholders, thereby allowing easy exit. However, the
\nmanagers of closed-end funds are not allowed to buy back the
\nshares they have issued.<\/p>\n
PT BDNI Securities' fund manager, Harris Thany, said that as
\nof Jan. 29, the company had purchased 40 stocks listed on the
\nJSX.<\/p>\n
\"We chose only blue chips with an average price earning ratio
\nof 16.07 times last year and 12.86 times this year,\" said Harris.<\/p>\n
Karmady rejected an assumption that his company's funds might
\nhave been invested in its group's shares only, such as Gadjah
\nTunggal, Andayani Megah and Bank BDNI.<\/p>\n
\"The fund now owns about 7 percent of Astra International's
\ntotal shares, 4 percent of Gudang Garam and about 3 percent each
\nof Gadjah Tunggal, Indofood, HM Sampoerna, Indocement, Indosat,
\nTelkom and Asahimas,\" Karmady said. (08)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jakartas-first-mutual-fund-works-to-whet-appetite-1447893297",
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