Insight - Market Outlook

Product

Mutual Funds

  1. Mutual Fund Agent

Bank Mandiri is registered as a Mutual Fund Agent by the Financial Services Authority (OJK) under Registration Certificate No. 07/BL/STTD/APERD/2007, dated 21 February 2007.

 

  1. About Mutual Funds
  1. Mutual Fund

A Mutual fund is a vehicle for pooling public funds for investment in a portfolio of securities managed by a fund manager

The most common types of mutual fund are as follows:

  • Conventional/Open Ended Fund

An open ended fund is a mutual fund which can be subscribed to or redeemed by an investor on each bourse trading day, depending on the purpose of investment, the time horizon and investor risk profile.

Open-ended funds consist of the following:

  • Money Market Mutual Fund

A mutual fund that invests 100% of its portfolio in money-market instruments with maturities less than 1 (one) year.

  • Fixed Income Mutual Fund

A mutual fund that invests at least 80% (eighty percent) of its portfolio in fixed income instruments.

  • Balanced Fund

A mutual fund that invests in equities, fixed income instruments and money market instruments, with investments in equities and fixed-income instruments being mandatory and each investment category accounting for not more than 79% (seventy-nine percent) of its total portfolio.

  • Equity Fund

A mutual fund that invests at least 80% (eighty percent) of its portfolio in equities.

 

  • Structured Fund (Closed-Ended Fund)

A Structured Fund is a mutual fund that can only be subscribed to or redeemed by an investor at a designated time, as determined by the Fund Manager.

Structured Funds come in the following forms:

  • Protected Fund

A Mutual Fund that provides protection for the investor’s initial investment through its portfolio management mechanism. In order to provide protection for the initial investment, the Fund Manager of a Protected Mutual Fund invests part of its portfolio in investment-grade fixed income instruments so that the value of these instruments at maturity date will at least be able to cover the protected amount.

 

 

  • Guaranteed Fund

A Mutual Fund that provides security through a guarantee that the investor will at least receive an amount equal to the initial investment at maturity date as long as the requirements are met. Such security is provided through the appointment of a Guarantor, which is an institution that underwrites the investment and has obtained a license from the regulator.

  • Index Fund (Index Tracker)

A Mutual Fund whose portfolio consists of equities that form part of a group of equities in an index that is being tracked, where at least 80% (eighty percent) of the Fund’s Net Asset Value (NAB) is invested in equities that are grouped in the said index. Shares in an Index Fund may be purchased or redeemed by the investor on each bourse trading day.

  1. Fund Manager

A Fund Manager is responsible for managing an investment portfolio for its investors or managing a collective investment portfolio for a group of investors, except for insurance companies, pension funds, and banks that manage their own businesses based on the applicable laws and regulations.

Bank Mandiri works together with 9 (nine) Fund Managers:

1) PT Bahana TCW Investment Management

2) PT Batavia Prosperindo Aset Manajemen

3) PT Danareksa Investment Management

4) PT Mandiri Manajemen Investasi

5) PT. Mandiri Manajemen Investasi

6) PT. Manulife Aset Manajemen Indonesia

7) PT. Schroder Investment Management Indonesia

8) PT. Ashmore Asset Management Indonesia

9) PT. Kresna Asset Management

  1. Custodian Bank

A Custodian Bank provides custodian service for securities and other assets related to securities, as well as other services, including processing payments of dividends and interest, etc, settling securities transactions, and representing its customer accountholders.

  1. Mutual Fund Agent (APERD)

A Mutual Fund Agent sells shares in a mutual fund based on an agreement with the Fund Manager.

  1. Mutual Fund Agent Sales Representative (WAPERD)

A Mutual Fund Agent Sales Representative is an individual licensed by the OJK to sell Mutual Funds.

  1. Endowment Fund

An Endowment Fund is a balanced investment vehicle whose income must be used for specific not-for-profit purposes, such as natural disaster relief, environmental conservation, and religious, cultural, educational and other not-for-profit activities.

  1. Mutual Fund Transaction Facilities

In order to further enhance our services to investors, Bank Mandiri provides additional facilities for mutual fund transactions, including:

  1. Mutual Fund Installment Plan

Investors can avail of our Installment Plan to make regular purchases of additional shares in Mutual Funds. This facility allows investors to purchase top ups from time to time without having to visit a Mandiri branch. The investor’s bank account is automatically debited (on bourse trading days) in accordance with the size and date of the subscription, as determined by the investor.

This facility provides a very useful tool for financial planning whereby future financial needs or objectives can be fulfilled by making regular investments.

  1. Installment Plan Advantages

1.    Provides a means to start investing early, encourages disciplined investment, and can be used as a way of investing to cover the future education of one’s children through the purchase of a QQ installment plan.

2.    Provides greater convenience in conducting Mutual Fund transactions as the customer only has to visit a Bank Mandiri branch once for the initial transaction, with subsequent top-up transactions being conducted automatically by the Bank’s system.

3.    Provides flexibility whereby the investor can determine the amount of his or her regular monthly investments and the date of debiting. It also provides a wide range of investment choices so that the investor can determine his or her asset allocations so as to diversify investment risk.

4.         Provides a means to implement the concept of "dollar cost averaging," whereby the investor can minimize risk due to fluctuations in the NAV/unit. Through the Bank Mandiri installment plan, the average investment purchase price will be better compared to once-off purchases as there is no way of knowing for sure whether current market conditions are above or below average.

Obligasi & Sukuk Ritel

With Spirit to Prosper the Nation, Bank Mandiri always provides the best investment products for customers and plays a role in national development as well as product development or Sharia market, one of them by acting as Bond and Sukuk selling agent for retail investors. The full commitment of Bank Mandiri as a Bond and Sukuk Selling Agent for retail investors and with the support of experienced and professional staff, has led Bank Mandiri to be named Best Selling Agent for the inaugural market publication of Retail State Bonds series ORI-001, ORI-002, ORI-003 , ORI-004, ORI-005, ORI-009, ORI-007, ORI-008, ORI-009, ORI-010, ORI-011 and ORI-012, and SR-001 Retail State Sukuk SR-002, SR-003, SR-005, SR-006, SR-008 & ST-001.

Here are the alternatives of Bond and Sukuk product options for retail investors:

1. Retail State Bonds (ORI)

Sovereign Debt Instruments with maturity of more than 12 (twelve) months; may only be sold to Individuals or Individuals of Indonesian Citizens to the Primary Market; can be traded in the secondary market.

2. Retail State Sukuk (SR)

State Sharia Securities with a maturity of more than 12 (twelve) months; and published on the basis of sharia principles; as evidence of the participation in the State Sharia Securities Assets; may only be sold to Individuals or Individuals of Indonesian Citizens to the Primary Market; can be traded in the secondary market.

3. Retail Bond Saving (SBR)

Sovereign Debt Instruments with a maturity of more than 12 (twelve) months sold to individuals or individuals of Indonesian Citizens to the Primary Market and can not be transferred or traded in the secondary market.

4. Saving Sukuk (ST)

Government Sharia Securities with a maturity of more than 12 (twelve) months and issued under the sharia principles, as evidence of the participation in the State Sharia Securities Assets, sold to individuals or individuals of Indonesian Citizens to the Primary Market and can not be transferred or traded on the secondary market.

Bancassurance

Synergy of Two Strengths

PT AXA Mandiri Financial Services (AXA Mandiri) is a joint venture between PT Bank Mandiri (Persero) Tbk (51% shares) and AXA (49% shares) engaged in marketing of insurance products through cooperation with Bank (bancassurance). operating since December 2003.

AXA Mandiri is gradually implemented by placing a professional Financial Advisor in Bank Mandiri branches. Started in December 2003 with only 40 Financial Advisors in 20 Bank Mandiri branches in Jakarta, AXA Mandiri has now placed a professional Financial Advisor in more than 1000 Bank Mandiri branches across Indonesia.