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Pinnacle Investment launches two ETF funds
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Pinnacle Investment chief investment officer Andri Yauhari Njauw (left), director Indra Muharam Firmansyah (center) and president director Guntur Surya Putra speak at the launch of Pinnacle Invesment ETF products at the Indonesia Stock Exchange (IDX) building Jakarta on June 4. (JP/Anton Hermansyah)
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sset management company Pinnacle Investment has launched two exchange traded funds (ETF) -- Pinnacle Indonesia Large-Cap ETF and Pinnacle CORE High Dividend ETF.
An ETF is a mutual fund, which investors can sell on the secondary market and trade like a stock.
"The product is suitable for both retail and institutional investors. These products have risk profiles similar to the entire market, but provide higher returns," said Pinnacle Investment chief investment officer Andri Yauhari Njauw at the Indonesia Stock Exchange (IDX) building on Wednesday.
In the primary market, an investor must buy from a dealer, with a minimum purchasing amount of 100,000 participation units, called a 'creation basket.' Participation units can then be sold, with a minimum amount of 100 participation units, known as one lot. Currently, the price of both ETFs are Rp 500 per participation unit. A creation basket is, therefore, worth Rp 50 million and one lot on the secondary market is worth Rp 50,000.
Pinnacle Investment president director Guntur Surya Putra said the previous ETF product, issued in October, 2016, had proven to have Beta closed to one, meaning the fund has a risk profile equal to Jakarta Composite Index (JCI), but provides 200 to 300 basis points (bps) higher return than JCI.
Pinnacle Indonesia Large-Cap ETF focuses the investment on stocks that have large market capitalization while Pinnacle CORE High Dividend ETF focuses on stocks that provide big dividends. Pinnacle investments is working with Indopremier Sekuritas as broker-dealer and Bank Central Asia (BCA) as custodian. (bbn)
