Elizabeth Gloria Brahmana
Less volatile financial markets and strong demand from retail investors are expected to help the mutual fund industry in the second half, with some industry analysts predicting as much as 20 percent growth in total funds from last year.
Mutual fund assets under management in Indonesia rose 13 percent to Rp 168.2 trillion ($18 billion) last year, data from the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK) show.
By the end of June, assets had reached Rp 171.6 trillion.
That marked a 2 percent gain year to date, less than half of the rate of the benchmark stock measure Jakarta Composite Index’s 5.9 percent advance.
“In the second half, mutual fund growth will be more promising as there are signs of resolving problems in Europe and economic stimulus,” Budi Hikmat, chief economist and director of investor relations at Bahana TCW Investment, said on Monday.
“As long as our economy continues to grow and the debt ratio and inflation are manageable, the value of assets in the capital market will return to their fair value,” he said.
Rudiyanto, the head of operations and business development at Panin Asset Management, said many fund managers had tried to increase retail investment in mutual funds by pushing the “auto debit facility,” which transfers investors’ money to a chosen mutual fund for a certain period.
“Fund managers will also introduce many products in the second half, so I’m confident mutual funds can grow by 15 percent to 20 percent,” he said.
Bapepam-LK has issued licenses for 20 funds this year and is processing licenses for 38 more.
Abiprayadi Riyanto, chairman of the Indonesia Mutual Fund Managers Association (Aprdi), was also optimistic that mutual funds could grow at least 15 percent this year, particularly in equity funds and balanced funds, which invest in stocks and bonds in roughly equal amounts.