The Jakarta Post
Bank Mandiri’s investment management subsidiary PT Mandiri Manajemen Investasi (MMI) expects its assets under management (AUM) to reach Rp 50 trillion (US$3.75 billion) this year amid a surging demand for protected funds.
The company’s president director Muhammad Hanif said the amount of AUM reached a total of Rp 42.17 trillion at the end of the first quarter, 2017, an 8.49 percent increase from Rp 38.86 percent at the end of 2016.
“We hope that our assets under management will reach Rp 50 trillion, exceeding our target of Rp 47.5 trillion,” he told the reporters during a media briefing in Jakarta on Tuesday.
In order to achieve the target, the company will boost the sales of protected fund products, which are now in high demand amid the relatively low growth in investment returns of equity and balanced funds.
“We are more selective in selling equity fund products because demand for them is now declining,” Hanif said. “As an impact, we will focus on selling protected fund products which are suitable for Indonesian investors,” he added.
The company’s protected funds grew by 21.6 percent to Rp 12.57 trillion in the first quarter of 2017 from Rp 10.34 trillion in December 2016. Meanwhile, equity funds increased by 4.4 percent to Rp 10.82 trillion in the first quarter of 2017 from Rp 10.36 trillion in December 2016 and balanced funds grew by 2.6 percent to Rp 316 billion in the first quarter of 2017 from Rp 308 billion in December 2016. (ecn/bbn)