USD Denomination Does Not Guarantee Returns as Indonesian Equity Funds Plunge
KONTAN.CO.ID – JAKARTA. Performance among US dollar (USD)-based mutual funds has varied in 2026. Global equity funds have posted positive returns, while USD equity funds whose underlying assets are Indonesian shares have recorded the steepest declines.
Syailendra Capital Fund Manager Rendy Wijaya said that, through September 2026, the firm’s USD Global Fund category had returned 9.97% year to date. The weighted average return by assets under management (AUM) was 14.65%, and 76% of products in the category had generated positive returns.
USD money market funds also posted positive performance, returning 2% year to date. By contrast, USD fixed-income funds returned minus 2.67%, mixed-asset funds fell 8.72%, and USD equity funds holding Indonesian shares recorded the steepest decline, at 28.22%.
For comparison, over the same period in 2025, Global Funds returned 10.73% year to date, mixed-asset funds 10.69%, equity funds 9.94%, fixed-income funds 4.46% and money market funds 2.80%.
Rendy explained that Global Fund performance was supported mainly by the characteristics of global sharia equity indices, which tend to have larger allocations to technology. Companies whose businesses involve interest-based finance are excluded from the investable universe, leaving the financial sector with a relatively smaller weighting.
This has benefited global sharia equity funds from the rally in technology shares, particularly companies linked to artificial intelligence (AI) and semiconductors. Gains in South Korean companies Samsung and SK hynix are among the examples.
Second, exposure to overseas assets provides diversification from domestic market risks. For example, when the IDX Composite (IHSG) comes under pressure and the rupiah weakens, Global Funds investing in overseas markets are not directly exposed to falls in Indonesian shares.
“By contrast, USD equity funds whose underlying assets are Indonesian shares remain exposed to the risk of a decline in the IHSG. In other words, USD denomination does not automatically protect investors from investment losses,” Rendy stressed.
He said investing in USD mutual funds can offer domestic investors diversification, including against exchange-rate fluctuations. However, investors should note that a fund’s eventual performance remains affected by movements in the underlying assets in its portfolio.
Developments in US financial markets, both equities and bonds, are a key catalyst for USD mutual fund performance. With global financial markets still highly volatile, Rendy advised investors who wish to increase their investments or diversify into USD funds to enter gradually.
“Interest among domestic investors has increased year on year, as reflected in the growth of AUM across USD mutual funds as a whole,” he concluded.