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Wednesday, November 24, 2010

Mutual funds unit only grow slightly on October

BI / exchange
3/11/2010
By: Irvin Avriano A.
Bisnis Indonesia

Mutual funds unit only grow slightly on October

JAKARTA: Mutual fund units only increased by 0.1% or as much as 830 million units during October, which indicate an increasing number of investors purchased a new unit only slightly. The data is believed to be the contribution from increased units from protected type of mutual fund.

Mutual Fund Data Information Center from Bapepam-LK that released yesterday shows the units of the mutual fund industry increased from 77.37 billion units to 78.2 billion units.

PT Infovesta Utama analyst Rudiyanto said the increasing number was most likely just caused by the addition of units of protected mutual fund.

"It shows investors have already realized a gain from share prices growth in the capital market," he told Bisnis earlier this week.

He said it shows most likely already reflected in the data increased investment units through September that processed by Infovesta from Bapepam-LK.

These data indicate units of other open ended fund, which is fixed income funds and money market fund, just posted an increase in thin numbers. Each for 190 units and 60 million units as of September.

In fact, the number of units of mixed mutual funds have stagnant, while equity fund decreased 2.37% or as much as 240 million investment units.

During the first 10 months of this year, the data also shows the units position of equity fund reduced from as much as 11.79 billion units in January to 9.85 billion units by the end of September. The number of its units were also briefly reached a peak in June, in the amount of 13 billion units when the investment return of stocks are climbing.

The amount is inversely proportional to the position of protected fund's units as much as 34.8 billion at the end of last year to 38.51 billion in September.

Rudiyanto suspect it is due to the rush desire of investors to realize gains in the time of their investment return has shown a profit.

"We suspect the majority of mutual fund investors are still institutions, that have a typical attitude to hit and run [took profits when it had a profit]."

Most institutional investors, he said, has a investment target realization that made them take advantage when their investment products has booked a profit.

He also believes increasing units will still grow on the protected funds type, although the type has potential decline in returns in the next year. That potential is due to imposition of tax on bonds of mutual fund's that will be apply.

According to him, investors are still interested in protected funds because of tax next year is still relatively small and therefore has not cut a lot of potential return.

PT Panin Sekuritas Tbk Director Winston Sual argues the decline unit did not occur in his company's equity fund because in general it increasing units still shows on purchasing transaction of that open ended mutual fund. That case, he continued, happen along with increasing stock market.

From end of September, the Jakarta/Indonesia Composite Index (JCI) rose by 43.44% from 2.530 levels to 3.653 levels by the end of October.

"In our company the purchasing still happen. We do not rely on protected funds but more to open ended mutual funds, especially stock based. "

PT Mandiri Manajemen Investasi Director Andreas Muljadi Gunawidjaja said, nowadays investors are more inclined to keep their money in savings and time deposits as well as protected funds that type similar with time deposit.

"There are still much investors that still intend to invest into protected mutual funds because of their orientation and placed their money on more secure instrument."

According to him, it becomes a chore for the mutual fund ndustry to promote products in capital markets to investors that make them may have more long-term investment horizon.

Bapepam-LK data also showed fund managed by the mutual fund industry increased slightly by 1.81% from IDR131 trillion in September to IDR133.58 trillion as of end of October. Since end of last year, the fund had been increased by 16.97%, from IDR144.2 trillion to IDR133.58 trillion.

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