Mutual Fund

1. Mutual Fund Selling Agent

Bank Mandiri is registered as a Mutual Fund Selling Agent from the Badan Pengawas Pasar Modal & Lembaga Keuangan (BAPEPAM-LK), under Registration Certificate No. 07/BL/STTD/APERD/2007 dated February 21, 2007.

2. About Mutual Fund

  1. Mutual Fund

    Mutual fund is a pool of money invested in stocks, bonds and money market instruments managed by an independent fund manager in order to maximize returns and diversify risks for investors.

    Mutual fund is of preferred choice for investors because they are managed by professional fund managers, where your investment will be diversified and actively managed by the fund managers.

    The following are the types of mutual funds and their explanations:

    • Open Ended Fund

      Open ended fund is a mutual fund which can be subscribed or redeemed by an investor on every bourse day. There are several types of open ended fund or asset classes which are available depending on the purpose of investment, the time horizon and investor risk profile, as follows :

      • Money Market Mutual Fund

        This mutual fund invests its 100 % portfolio in money market instruments with maturity less than 1 (one) year.
        It offers higher potential return compare to regular saving and current account. Normally, there is no subscription and redemption fee charged and it also Carries the lowest risk among other mutual fund categories.

      • Fixed Income Mutual Fund

        This mutual fund invests at least 80% (eighty percent) of its portfolio in fixed income instruments. It offers potential higher return compare to Time Deposit.

      • Equity Fund

        This type of mutual fund invests at least 80% (eighty percent) of its portfolio in Equities. It offers a long term capital gain and it also carries the higher risk among other asset classes.

      • Balanced Fund

        This type of mutual fund invest allocates its investment portfolio equities and/or fixed income instruments the ratio of which is other than the Fixed Income Fund and Equity Fund.
        It offers flexibility of portfolio allocation between fixed income and equity intstruments

    • Close Ended or Structured Fund

      Structured Fund is a mutual fund that can only be subscribed or redeemed by an investor only on a certain period of time as determined by Fund Manager.

      The types of Structured Fund are as follows:

      • Protected Fund

        This type of Mutual Fund provides protection on investor’s initial investment through its portfolio management mechanism. In order to give protection to the initial investment, the Investment Manager for Protected Mutual Fund will invest part of the fund it manages into debt/fixed income instrument of investment grade category, so that the value of the instrument at maturity date will at least be able to cover for the amount being protected.

      • Guaranteed Fund

        This type of Mutual Fund provides security that an investor will at least receive an amount equal to the initial investment at maturity date as long as the requirements are met. The granting of such security is done through the appointment of a Guarantor, which is an institution who can perform underwriting and has obtained permit from the BAPEPAM-LK.

      • Index Fund

        A type of Mutual Fund the portfolio of which consists of equities that constitutes a group of equities portfolio from an index as its reference.

  2. Fund Manager

    A Party whose business is to manage investment portfolio for a customer or manage a collective investment portfolio for a group of customers, except insurance companies, pension funds, and banks who manage their own business based on the applicable law & regulations.

    In delivering the quality products, Bank Mandiri has been in cooperation with award winning professional and reputable fund managers to provide investors with wide range selection of mutual funds across all asset classes.

    Those fund managers are :

    1. PT. Bahana TCW Investment Management
    2. PT. Batavia Prosperindo Aset Manajemen
    3. PT. Danareksa Investment Management
    4. PT. Fortis Investments
    5. PT. Mandiri Manajemen Investasi
    6. PT. Manulife Aset Manajemen Indonesia
    7. PT. Schroder Investment Management Indonesia
  3. Custodian Bank

    A Party which provides with custodian service for securities and other assets related to securities as well as other services, including processing dividend payment, interests, etc, settling stock transactions, and representing customer/account holders in a corporate action.

  4. Selling Agent

    A Party that distributes sales of mutual fund based on a cooperative agreement with the Investment Manager of the mutual fund.

  5. WAPERD License Sales Force

    An individual having permits from the BAPEPAM-LK (Capital Market and Financial Institution Supervisory Agency) to act as a Mutual Fund Seller.

  6. Endowment Fund

    Endowment Fund is a fund which provides with the opportunity to invest and contributes at the same time the fund of which is used for non-profit purposes such as: natural disasters recovery fund, environmental conservation, religious, cultural, educational and other non-profit activities.

    • Types of Endowment Funds are as follows:
      • True Endowment Fund
        • Established by the donors;
        • Investment principal can not be redeemed;
        • Non-profit organizations can only utilize the returns/profits gained from the investment;
        • Example: Dana Abadi Umat (Religious Community Endowment Fund) established by the Government of Republic of Indonesia.
      • Term Endowment Fund
        • Established by the donors;
        • Investment principal and investment returns/profits can be redeemed based on specifications as stipulated by the donors;
        • Example: Funds given by USAID as a donor to Yayasan KEHATI (KEHATI Foundation).
      • Quasi Endowment Fund
        • Established by non-profit organizations;
        • Investment principal and investment returns/profits can be redeemed based on specifications as stipulated by the organization’s board of management;
        • Example: Reksa Dana Ganesha Abadi (Ganesha Abadi Mutual Fund) which is formed by Ikatan Alumni ITB (ITB Alumni Association).
    • Types of Endowment Fund Investment offered through Bank Mandiri:
      • Platinum – donating all investment principal and profits into an Endowment Fund;
      • Gold (other Investment Managers call it Diamond) – All investment returns are channeled into an Endowment Fund while the principal remains the ownership of investors;
      • Silver (other Investment Managers call it Emerald) – 50% of the investment returns is channeled into an Endowment Fund whereas the principal and 50% of the returns remain the ownership of investors;
      • Regular (other Investment Managers call it Ruby) – Both the principal and the return fully become the ownership of investors, however, the investors continue to contribute through management fee sharing which is channeled by the Investment Manager to the initiating parties which is calculated based on Net Asset Value (NAB).
    • Endowment Fund offered through Bank Mandiri:
      No
      Name of Mutual Fund
      Investment Manager
      Type of Investment
      		 Asset Class
      1 Ganesha Abadi PT. Bahana TCW Invesment Management Regular, Silver, Gold, Platinum Fixed Income
      2 Kehati Lestari PT. Bahana TCW Invesment Management Regular, Silver, Gold Fixed Income
      3 Makara Abadi PT. Bahana TCW Invesment Management Regular, Silver, Gold, Platinum Fixed Income
      4 Makara Prima PT. Bahana TCW Invesment Management Regular, Silver, Gold, Platinum Mix
      5 Mandiri Investa UGM PT. Mandiri Manajemen Investasi Regular, Silver, Gold, Platinum Shares
      6 Mandiri Investa Keluarga PT. Mandiri Manajemen Investasi Ruby, Emerald, Diamond Fixed Income

3. Mutual Fund Products & Prospectus

There are 5 (five) asset classes of open ended offered through Bank Mandiri. Before making a subscription to a mutual fund, a customer or investor must read the prospectus of each mutual fund that he will buy. For ease of transaction, customers can download mutual fund prospectus by clicking on the name of desired mutual fund.

  • Money Market Fund
    No
    Name of Mutual Fund
    Bank Custodian
    Investment Manager
    1 Si Danakas Maxima Standard Chartered Bank PT.Batavia Prosperindo Aset Manajemen
    2 Seruni Pasar Uang II Citibank, NA PT. Danareksa Investment Management
    3 Mandiri Investa Pasar Uang Deutsche Bank AG PT. Mandiri Manajemen Investasi
    4 Manulife Dana Kas Deutsche Bank AG PT. Manulife Aset Manajemen Indonesia

  • Fixed Income Fund
     No
    Name of Mutual Fund
    Bank Custodian
     
    Investment Manager
     
    1 Ganesha Abadi Standard Chartered Bank PT. Bahana TCW Invesment Management
    2 Kehati Lestari Standard Chartered Bank PT. Bahana TCW Invesment Management
    3 Makara Abadi Standard Chartered Bank PT. Bahana TCW Invesment Management
    4 Danareksa Melati Premium Dollar Citibank, NA PT. Danareksa Investment Management
    5 Mandiri Investa Dana Utama Deutsche Bank AG PT. Mandiri Manajemen Investasi
    6 Mandiri Investa Dana Obligasi Deutsche Bank AG PT. Mandiri Manajemen Investasi
    7 Mandiri Investa Dana Obligasi Seri II Deutsche Bank AG PT. Mandiri Manajemen Investasi
    8 Investa Dana Dollar Mandiri Standard Chartered Bank PT. Mandiri Manajemen Investasi
    9 Mandiri Investa Keluarga Deutsche Bank AG PT. Mandiri Manajemen Investasi
    10 Manulife Obligasi Negara Indonesia II Deutsche Bank AG PT. Manulife Aset Manajemen Indonesia
    11 Manulife Pendapatan Bulanan II Deutsche Bank AG PT. Manulife Aset Manajemen Indonesia
    12 Schroder Dana Andalan II Deutsche Bank AG PT. Schroder Investment Management Indonesia
    13 Schroder Dana Mantap Plus II Deutsche Bank AG PT. Schroder Investment Management Indonesia

  • Equity Fund
    No
    Name of Mutual Fund
    Bank Custodian
    Investment Manager
    1 SI Dana Saham Deutsche Bank AG PT. Batavia Prosperindo Aset Manajemen
    2 Danareksa Mawar Citibank, NA PT. Danareksa Investment Management
    3 Fortis Ekuitas Deutsche Bank AG PT. Fortis Investments
    4 Fortis Infrastruktur Plus Citibank, NA PT. Fortis Investments
    5 Mandiri Investa Atraktif HSBC PT. Mandiri Manajemen Investasi
    6 Mandiri Investa Atraktif Syariah Deutsche Bank AG PT. Mandiri Manajemen Investasi
    7 Mandiri Investa UGM Deutsche Bank AG PT. Mandiri Manajemen Investasi
    8 Manulife Dana Saham Deutsche Bank AG PT. Manulife Aset Manajemen Indonesia
    9 Schroder Dana Prestasi Plus Deutsche Bank AG PT. Schroder Investment Management Indonesia

  • Balanced Fund
    No
    Name of Mutual Fund
    Bank Custodian
    Investment Manager
    1 Makara Prima BII PT. Bahana TCW Invesment Management
    2 Bahana Dana Infrastruktur Deutsche Bank AG PT. Bahana TCW Invesment Management
    3 Si Dana Dinamis Deutsche Bank AG PT. Batavia Prosperindo Aset Manajemen
    4 Danareksa Anggrek Citibank, NA PT. Danareksa Investment Management
    5 Danareksa Syariah Berimbang Citibank, NA PT. Danareksa Investment Management
    6 Fortis Equitra Standard Chartered Bank PT. Fortis Investments
    7 Mandiri Investa Syariah Berimbang Deutsche Bank AG PT. Mandiri Manajemen Investasi
    8 Mandiri Investa Aktif Deutsche Bank AG PT. Mandiri Manajemen Investasi
    9 Manulife Dana Campuran Deutsche Bank AG PT. Manulife Aset Manajemen Indonesia
    10 Schroder Dana Prestasi Deutsche Bank AG PT. Schroder Investment Management Indonesia
    11 Schroder Dana Terpadu II Deutsche Bank AG PT. Schroder Investment Management Indonesia

  • Index Fund
    No
    Name of Mutual Fund
    Bank Custodian
    Investment Manager
    1 Danareksa Index Syariah Standard Chartered Bank PT. Danareksa Invesment Management

4. Additional Features of Mutual Fund Provided by Bank Mandiri

In order to improve service for the investors, Bank Mandiri provides additional facilities for mutual fund transaction which include:

  • Monthly Dividend of Money Market Fund

    Bank Mandiri has improved its service by giving an opportunity for the investors who have and will have money market fund to carry out automatic partial redemption against its units every month. Redemption is calculated based on positive difference between the number of units at the end of the month and units in the beginning of the month. Therefore, if the difference of units is negative, there will be no such automatic redemption.

    Money Market Mutual Funds offered through Bank Mandiri which can use automatic redemption are:

    1. Mandiri Investa Pasar Uang – managed by PT. Mandiri Manajemen Investasi;
    2. Seruni Pasar Uang II – managed by PT. Danareksa Investment Management;
    3. Si Dana Kas Maxima – managed by PT. Batavia Prosperindo Aset Manajemen.

    To benefit from this facility, investors can contact nearest Branch which is eligible to sell Mutual Fund and fill up the form as well as the Power of Attorney for Automatic redemption instruction

  • Installment Plan

    An additional facility that investors can utilize to carry out regular automatic subscription of mutual fund. This facility provides with simplicity and flexibility for the investors, because they can subscribe mutual fund (top up) regularly without attending the Branch premises every time the subscription is made. Investors’ saving account will be debited (on the bourse day) based on the amount and date as decided by investors.
    This facility is very powerful in the framework of investors’ financial planning where the future financial needs or objectives can be fulfilled by carrying out regular investment.

5. Pillars of Investment

Bank Mandiri always reminds the 5 (five) pillars of Investment as follows:

  • Investment Objectives

    Set the objectives of investment. Choose appropriate return indices or growth of fund which will be invested in.

  • Time Horizon

    Ensure the time horizon can serve the investment objectives.

  • Risk Profile Know the return and risk profile of the investment.

    Note:

    • High Risk – High return
    • Low Risk – Low Return
      •
  • Asset Allocation

    Do the diversification to obtain optimum portfolio.
    Remember: ”Never put your eggs in one basket”.

  • Periodic Review

    Monitor your investment portofolio regularly, in order to set the strategy strategy to maintain expected level of return.

6. The Advantages of Investing in Mutual Fund

  • Diversification

    Mutual Fund puts its investment portfolio in various instruments, such as money market, government and corporate bonds, and equities. This diversification results in lower risk of portfolio investment.

  • Professional Fund Manager

    Mutual Funds distributed through Bank Mandiri are managed by a reputable Fund Managers whose license of an Investment Manager Representative (WMI) from BAPEPAM-LK. These Professional Fund Managers will carry out his tasks in allocating investments based on prospectus as well as investment objectives in order to obtain targeted returns.

  • Liquid Instruments

    OOne of the advantages of investing in mutual fund is liquidity, in which every investor can redeem the units owned while the Fund Manager has obligation to serve it and pay the amount within T + & bourse days.

  • Many Choices and Flexibilities

    It offers many choices of products, such as money market, fixed income, equity or balance funds. Investors can pick up the product based on investors’ needs and easily switch from one mutual fund to the other.

  • Convenience and Simplicity

    Mutual fund transaction can be done easily through Bank Mandiri. Simply by opening a savings account in Bank Mandiri, the investors can start mutual fund transactions.

  • Transparency

    Financial and portfolio report are available through Fund Fact Sheet. The fund fact sheet is available regularly to ensure the transparency of investment in mutual fund. The investors are able to find out the composition of the portfolio and the performance of their mutual funds.

  • Low Cost

    As mutual fund is a collection of funds from many investors, this will generate transaction cost efficiency.

7. Risk Profile

Knowing your risk profile is important before deterimining the investment objectives. Everyone has different risk profile. The following are the risk profiles and investment objectives:

  • Conservative (Risk Averse)
    • Aiming to preserve the capital and current income;
    • Growth of invested funds is not the objective;
    • Tend to avoid investment risks;
    • Opt for short-term investment instrument.
  • Moderate
    • Aiming to grow current income;
    • Aiming to grow invested funds;
    • Moderately tolerant to investment risks;
    • Opt for medium-term investment instrument
  • Agressive (Risk Lover)
    • Do not aim to get current income;
    • Aiming to substantial growth of invested funds;
    • Highly tolerant to investment risks;
    • Opt for long-term investment instrument

Disclaimer: Mutual fund is not a product of Bank Mandiri. Mutual fund constitutes investment products managed by an Investment Manager. Mutual Fund has investment risks. Past performance is not indicative of future performance.

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