Indonesia’s mutual fund industry assets under management (AUM) rose 11%
Indonesia’s mutual fund industry assets under management (AUM) rose 11% to 507.49 trillion rupiah (US$36.54 billion) through the first four months of 2018, driven by conventional and shariah equities funds, according to official data.
That was up from 457.155 trillion rupiah at the end of 2017.
The gains registered in January through April also mark 19 consecutive months of AUM growth, the Indonesia Financial Services Authority (OJK) says on its website.
The biggest asset class was conventional and shariah equities funds, which had a net asset value (NAV) of 146.9 trillion rupiah at the end of April, accounting for 29.23% of the mutual fund industry’s AUM. That was up 12% from 131 trillion rupiah at the end of 2017.
The increase was in spite of the fact that Indonesia’s stock market, like its global counterparts, was on a downtrend in the first four months of the year amid concerns about inflationary pressures and trade tension between China and the US.
According to Legowo Kusumonegoro, president director of Manulife Asset Management Indonesia, greater demand for mutual funds helped fuel Indonesia’s equities funds.
"The growth in (the) mutual fund industry during the period was contributed by (a) 13% increment in (the) number of units in mutual funds," Mr. Kusumonegoro tells Asia Asset Management.
Figures from OJK show that there were 1,845 mutual funds in Indonesia at the end of April, 5% more than at the end of 2017.
Meanwhile, the second largest asset class as at end-April was protected funds, with NAV of 125.56 trillion rupiah, or 24.7% of industry assets. Protected funds guarantee the investor’s initial investment plus any capital gains, provided they are held for the full contractual term.
Conventional and shariah fixed income funds were in third place with total NAV of 108.32 trillion rupiah, or 21.3% of industry AUM, followed by money market funds, with 71.64 trillion rupiah or 14.1% share.