Mandiri Investasi Market Outlook 2019 : Sunshine After The Rain
By the end of 2018, PT Mandiri Manajemen Investasi succeed achieving Asset Under Management (AUM) for mutual funds of Rp.48,2 trillion. While for total managed funds, including Capital Protected Funds and Discretionary Funds, Mandiri Investasi recorded total funds under management worth Rp.53,4 trillion.
With AUM Mutual Funds achievement worth Rp.48,2 trillion (including KIK EBA and RDPT), Mandiri Investasi Market Share in mutual funds industry achieve 9,1% and maintaining no.1 in AUM national mutual funds ranking.
From the composition of AUM Mutual Funds per asset class, Mandiri Investasi AUM Mutual Funds per December 2018 still dominated by Capital Protected Funds with AUM contribution reaching 34%. Followed by Equity Funds and Fixed Income Funds, each earns 18% and 14% respectively.
In 2018, Mandiri Investasi also launch various alternative investment, such as Mandiri GIAA01 Collective Asset Securities (KIK-EBA) Contract with a total value of Rp 2 Trillion, which is the first financial asset securitization instrument in Indonesia that makes the rights to revenue from ticket sales from Jeddah and Medina routes as underlying. In addition, Mandiri Investasi also issues Equity Infrastructure Fixed Income Mutual Funds (RDPT MIET) with a total value of Rp 1.97 Trillion to finance the Trans Java toll road infrastructure.
Mandiri Investasi also keep made a breakthrough by providing investment access to offshore markets through collaboration with Global Management and Private Bank Assets, Lombard Odier.
2019 Plan
In 2019, Mandiri Investasi sees this year is filled with optimism. The release of Indonesia’s GDP growth data shows that the domestic economy accelerated from 5.07% yoy in 2017 to 5.17% yoy in 2018. Maintaining consumer purchasing power amidst easing external pressure will be a supporting factor for domestic economic growth, especially in the first quarter of this year. On the other hand, the stable economy of developing countries and the policies of the US Central Bank which are expected to be more accommodating this year will provide positive sentiment for asset classes in developing countries.
This is a momentum for Mandiri Investasi to continue to improve the performance of Mutual Fund products. With the condition of the capital market that is expected to be more vibrant this year, asset classes that can be chosen by investors to invest include Stock Funds and Fixed Income Mutual Funds. The Mandiri Investment product which is the flagship in Equity Funds is the ASEAN 5 Plus Mandiri Investa Equity Mutual Fund (ASEAN5 +) and the Mandiri Investa Equity Dynamo Factor (DYNAMO) Mutual Fund. Whereas for Fixed Income Mutual Funds is Mandiri Investa Dana Utama (MIDU) Mutual Fund. As our answer to investor interest in alternative investment products, the Company plans to issue several other alternative products in 2019 such as KIK-DINFRA and other KIK-EBA.
Mandiri Investasi committed to grow better and keep developing capability, fit to Mandiri Investasi vision to be “The Most Innovative and leading Asset Management company in Indonesia.” Mandiri Investasi constantly give investment solution with innovative product along optimal result to fills investor’s needs.
CIC-DINFA(Infra Fund) Product Learning Session
PT Mandiri Manajemen Investasi conduct socialization for the latest and innovative product with PT Jasa Marga Tbk., that is Infrastructure Investment Fund Collective Investment Contract (KIK-DINFRA) held in 26 February 2019 at Le Meriden Hotel, Jakarta. KIK-DINFRA launched to be investment solution and alternative financing for infrastructure development in Indonesia. Mandiri Investasi act as investment manager supported by PT Mandiri Sekuritas as arranger and PT Maybank Indonesia Tbk. as custodian bank.
Investment Infrastructure Fund (DINFRA) is a form of collective investment contract used to collect funds from investor community, then invested into infrastructure asset in a form debt and/or equity from investment manager, and can be offered in public offers or limited offers. The advantages of KIK-DINFRA compared to the other investment product is that KIK-DINFRA give alternative solution for investor to invest in infrastructure asset, directly or indirectly through share ownership in the Infrastructure Ownership Company. Besides, KIK-DINFRA also gives extra benefits in portfolio diversification of infrastructure asset that is not or being build, or has produce income (brown-field) through alternative investment medium potentially reduce portfolio volatility. DINFRA Toll Road Mandiri-001 is KIK-DINFRA product, firstly recorded and traded on Indonesia Stock Exchange, offered through public offers so that it can reach institutional and retail investors.
The scheme designed for investor to placed funds in KIK-DINFRA and managed by investment manager in a form of KIK-DINFRA participation unit, those funds would be used by investment manager to invest in infrastructure asset by buying PT Jasa Marga Pandaan Toll stock, owner of the 13,61 KM Gempol-Pandaan toll road concession, either through taking part in the issuance of new shares or by purchasing ownership from Jasa Marga in PT Jasamarga Pandaan Toll. This product will be listed first on the Indonesia Stock Exchange in the near future.
The socialization hopefully would give understanding to investors in case of Mandiri Investasi alternative investment products that keep contribute to infrastructure development in Indonesia.
Infra Fund: Innovative Product for your investment solution and Indonesian Infrastructure alternative
PT Mandiri Manajemen Investasi in collaboration with PT Jasa Marga (Persero) Tbk. launch an innovative product in Indonesia Capital Market Sector, called “Collective Investment Contract Infrastructure Investment Fund” (KIK-DINFRA) to fulfill investment solutions and alternative financing for Indonesia’s infrastructure development. KIK-DINFRA Initial listing done at Indonesia Stock Exchange on Monday, 15 April 2019. KIK-DINFRA product called DINFRA Toll Road Mandiri-001 to be introduce at Submission of an effective statement from the Financial Services Authority held at the IMF-World Bank event in Bali, 2018.
Investment Infrastructure Fund (DINFRA) is a form of collective investment contract used to collect funds from investor community, then invested into infrastructure asset in a form debt and/or equity from investment manager, and can be offered in public offers or limited offers. The advantages of KIK-DINFRA compared to the other investment product is that KIK-DINFRA give alternative solution for investor to invest in infrastructure asset, directly or indirectly through share ownership in the Infrastructure Ownership Company. Besides, KIK-DINFRA also gives extra benefits in portfolio diversification of infrastructure asset that is not or being build, or has produce income (brown-field) through alternative investment medium potentially reduce portfolio volatility. DINFRA Toll Road Mandiri-001 is KIK-DINFRA product, firstly recorded and traded on Indonesia Stock Exchange, offered through public offers so that it can reach institutional and retail investors.
In DINFRA Toll Road Mandiri-001 scheme, investor placed funds in KIK-DINFRA and managed by investment manager in a form of KIK-DINFRA participation unit, those funds would be used by investment manager to invest in infrastructure asset by buying PT Jasa Marga Pandaan Toll stock, owner of the Gempol-Pandaan toll road concession that is one of PT Jasa Marga (Persero) Tbk. subsidiary, either through taking part in the issuance of new shares or by purchasing ownership from Jasa Marga in PT Jasamarga Pandaan Toll. Mandiri Investasi act as fund manager supported by PT Mandiri Sekuritas as arranger and PT Maybank Indonesia Tbk. as custodian bank.
PT Jasamarga Pandaan Toll is Gempol-Pandaan 13,61 KM toll road developer, that is DINFRA Toll Road Mandiri-001 underlying. Gempol-Pandaan toll road connect Surabaya-Gempol toll road with Pandaan-Malang toll road, that has 37 years concession period and operating since 2015.
Until the end of March 2019, Mandiri Investasi succeed in recorded Asset Under Management include Capital Protected Funds and Discretionary Funds of Rp55 Trillion. Mandiri Investasi committed to keep developing alternative investment product as diversification for investor.
Mandiri Investasi Launch “Mandiri Pasar Uang Sharia Ekstra” in Tokopedia
With the largest Muslim population in the world, Indonesia has a huge potential for financial products based on Islamic principles, including Sharia Mutual Fund. To utilize the potential, Mandiri Manajemen Investasi launch Extra Sharia Mutual Fund, that is Sharia Mutual Fund product, collaboration of two leading marketplace in Indonesia, Tokopedia and Bareksa.
Based on Bareksa data in February 2019, Sharia Mutual Fund product recorded managed funds (AUM) Rp 36,83 trillion, increased 21,63% from February 2018 that recorded Rp 30,28 trillion. However, compared to the industry in general, Sharia Mutual Fund just contributed 7,07% in Mutual Fund industry in Indonesia with total of 134 Mutual Fund product.
Meanwhile, according to World Bank data, around 226,2 million people, or 87% from 260 million total population in Indonesia are Muslim. But, the value of Sharia Mutual Fund managed fund in Indonesia equal US$2 trillion only ranks third in the world, far below Malaysia that has AUM US$28,4 trillion in 2017 while the total population are 31 million only. First position held by Arab Saudi, according to Cerulli Associates research data.
Mandiri Manajemen Investasi Director, Endang Astharanti views Sharia Mutual Fund product could added good value for investor. Average performance of Sharia money market Mutual Fund managed by Mandiri Manajemen Investasi is more interesting compared to yield from savings or average bank deposits with historical performance of one year above 5%. “Aside from affordable and liquid because there is no lock-out period such as deposits. So, it can be withdrawn wherever needed.” said Asti.
Sharia money market Mutual Fund can be purchased in Tokopedia with very affordable price, just Rp10.000. Payment for Mutual Fund transaction also very easy because there are several choices available, from bank transfer, to using OVO Cash. The advantages of Extra Sharia Mandiri money market Mutual Fund is liquidity, which allows instant withdrawal on the same day with the transaction, or called T+0. This investment product is very safe because managed by Mandiri Investasi, the most innovative and leading Asset Management in Indonesia.
Targeting e-wallet in FinTech Industry, Mandiri Investasi Launch Money Market Fund with T+0 Feature
As time goes by, digital industry in Indonesia especially in financial service often called financial technology (fintech) like e-wallet that is part of ecommerce online ecosystem or online transportation platform, also peer-to-peer lending (P2P) keep showing massive growth. Looking at this trend, Mandiri Manajemen Investasi (Mandiri Investasi), supported by Standard Chartered Bank Indonesia (SCBI) as custody bank, launch Money Market Mutual Funds product with higher liquidity, called Mandiri Investa Pasar Uang 2 (MIPU2) Mutual Funds.
Mandiri Investa Pasar Uang 2 (MIPU2) Mutual Funds is different with conventional Money Market Mutual Funds, because this product offers highest liquidity, with disbursement funds on the same day as when the transaction order was made, or called T+0. Purchase of MIPU2 start only from Rp10.000, so it very attractive for beginner investor who want to start investing with low risk. T+0 feature done by MIPU2 management strategies that invest in highly liquid money market instruments so that funds from disbursement of participation units are not from facilities or billing, but are the result of investor redemption transactions that will be credited by the custodian bank to the customer’s bank account on the same day, with a sell transaction cut-off-time order at 10 AM where investors will get the proceeds from the sale of the participation unit with the Net Asset Value on the same day.
“This product is very innovative because its very liquid with T+0 transaction time, added with affordable and easy investing. This T+0 Mutual Funds product firstly launch in the Indonesian capital market.” said Alvin Pattisahusiwa, President Director of Mandiri Investasi.
As a comparison, nowadays funds from the disbursement of Mutual Funds units are generally accepted by investor at T+1 to T+3, equivalent to one to three days. Therefore, T+0 by MIPU2 is a very attractive aspect for potential investors.
Mandiri Investasi, together with Standard Chartered Bank as custody bank. “As international bank with more than 155 years’ experience in Indonesia, and one of the first to get a custodian business license from OJK, we are commit to keep innovating with product and service to response the needs and dynamics of society.” Said Rino Donosepoetro, CEO of Standard Chartered Bank Indonesia. “We’re very glad to be strategic partner of Mandiri Investasi to launch first Mutual Funds in Indonesia with T+0 feature. This partnership is a clear proof of our role to participate in developing investment in the Indonesian capital market industry, especially for the retail market. This is also in line with one of our visions, to become the number 1 custodian bank in Indonesia. ”
Now, MIPU2 present at Mandiri Investasi online platform called MOINVES, and would be launched with several selected Mutual Funds Selling Agent (APERD). In the near future, Mandiri Investasi will join hands with several online platforms in Indonesia to targeting digital wallet to optimize user idle funds through this MIPU2 product.
This investment product is very safe because it managed by Mandiri Investasi and watched over OJK. Mandiri Investasi has vision to becoming leading and most innovative investment manager in Indonesia until 1Q19 with total managed funds worth IDR55.3 trillion.
Mandiri Investasi Collaborating With Bank CTBC Indonesia As Mutual Funds Selling Agent
PT Mandiri Manajemen Investasi formally announce partnership agreement for the sales of Mutual Funds with PT Bank CTBC Indonesia (CTBCI) as custody bank. Therefore, Mutual Funds product to be launched are Mandiri Investa Pasar Uang (MIPU), Mandiri Investa Dana Utama (MIDU), and Asean Five Plus Equity (ASEAN5). The partnership signing ceremony was attended by Alvin Pattisahusiwa, President Director of MMI, and Iwan Satawidinata, Presiden Director of CTBCI, along with management from both companies.
MMI partnership with CTBCI as Mutual Funds Selling Agent (APERD) is a strategy to provide more choices of investment alternative for customer, because the prospect of various MMI product in market. Besides, the partnership is commitment between two companies to support Indonesia government in inclusion and financial literacy through Mutual Funds investment.
President Director of Mandiri Investasi, Alvin Pattisahusiwa said, “Partnership with CTBCI as Mutual Funds Selling Agent (APERD) will facilitate and widen public access to be able to invest in mutual fund instruments through banks. Besides, collaboration with banking institution is one of Mandiri Investasi strategy to expand our business and customer base.” We believe this is a good start for other business potential in the future, said Alvin.
“We are optimist to welcome strategic collaboration with Mandiri Investasi as leading business partner in national Mutual Funds industry. The similarity of our vision is to develop continuing efforts to support the development of investment products for customers,” said Iwan Satawidinata, President Director of CTBCI. Partnership development with Mandiri Investasi as an asset management with the largest total Asset Under Management in Indonesia would open bigger prospect for Bank CTBC to increase Fee Based Income in 2019.
The signing ceremony of the partnership on this day was followed by a seminar entitled Overview of the Indonesian Economy after the 2019 General Election, presented by Aldo Perkasa, Deputy CIO of PT Mandiri Manajemen Investasi; Philips J. Vermonte from Centre for Strategic and International Studies [CSIS; and Eko P. Pratomo as founder of Financial Wisdom and Gerakan Indonesia Cerdas Finansial. The seminar attended by CTBCI customers from various professions, ranging from entrepreneurs to financial and business practitioners.