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Pinnacle Investment launches new ETF product
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PT Pinnacle Persada Investama (Pinnacle Investment) president director Guntur Putra delivers a speech about the company’s new product called Pinnacle Enhanced Sharia ETF (XPES) on Oct. 12. XPES is the fourth ETF product the company had launched so far. (JP/Winny Tang)
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echnology driven investment firm Pinnacle Investment has expanded its product portfolio with the launch of Pinnacle Enhanced Sharia exchange-traded fund (ETF) on Thursday, traded under the IDX ticker XPES.
Pinnacle Investment hopes that the new product — which is the fourth ETF product offered by the company — will provide investors with more choices to invest.
The company partnered with Indo Premier Sekuritas as the authorized dealer participant and appointed DBS Bank to act as the custodian bank for its ETF product.
“XPES is the first sharia based equity ETF in Indonesia that adopts smart beta strategy, which uniquely combines passive and active style investment strategies,” Pinnacle Investment president director Guntur Putra said at the Indonesia Stock Exchange building on Thursday.
He further explained that the XPES Smart Beta ETF would weigh stocks and optimize them based on four well established attributes of performance — value, momentum, quality and volatility.
Despite acknowledging that the ETF industry in Indonesia is still in its infancy, the firm sees a big opportunity in the market for ETF as it could provide more benefits and better potential returns compared to conventional mutual funds.
“The traction is there [for ETF], the most important thing now is to disseminate information and educate [potential investors],” he said. At present, Pinnacle Investment’s asset under management (AUM) has reached Rp 2.3 trillion. In the past 1.5 years, the company had launched four ETFs, with a total AUM of nearly Rp 500 billion. (bbn)
