Return of equity fund slowing down: Emitter with less capitalization worthy collecting

Saturday, 08/05/2010 00:00 WIB

Return of equity fund slowing down: Emitter with less capitalization worthy collecting

Irvin Avriano A.

Bisnis Indonesia

JAKARTA: The average return of equity fund last month was 5.8 percent or less than the growth of Jakarta Composite Index (JCI) of 6.98 percent due to the fluctuating stocks with less capitalization and non blue chip.

Data of PT Infovesta Utama shows the average returns of 74 equity funds here were slightly mounted by the small number of investment products with high return as from the other parts.

There are only 36 mutual fund products booking the returns above the average of 5.8 percent. meanwhile, the other 38 products have lower than average returns.

Research analyst of Infovesta Utama Edbert Suryajaya said this is due to the fact that most equity funds use blue chip as the portfolios in the top ten securities as the investment composition.

"The stock market last month was mostly driven by the non blue chip stocks. The higher return of mutual funds is mostly of non blue chip," he said to Bisnis this week.

Stock analyst of Infovesta Utama Praska added some flying stocks sector last month which boosted the return of equity fund is those from mining, manufacture, and property.

As to him, mining stocks could grow stronger in a larger number than the other sectors due to the soaring mining commodity prices like nickel and tin at the global market.

"I note there are some soaring stocks last month from mining such as PT Adaro Indonesia Tbk, PT Indo Tambangraya Megah Tbk, and PT United Tractor Tbk."

The Infovesta data also shows there are only two equity funds recording higher return than 10 percent. Both products include Reksa Dana Millennium Equity of PT Millennium Danatama Indonesia and Reksa Dana Panin Maksima of PT Panin Sekuritas Tbk.

Director & investment manager of Panin Sekuritas Winston Sual said the large spread of equity funds particularly those managed by the company was due partily to the fluctuation of the emitter stocks with less amount of capitalization.

That kind of stock still has better fundamental and the price is still quite low and thus they are worthy to collect.

"One of the instances moving the stock exchange is that of PT Telekomunikasi Indonesia Tbk with large capitalization and becomes one of the major portfolio of mutual fund industry. As only less has robust growth last month, most equity funds have less return."

Data of Infovesta Utama also shows the average return of equity fund is still far larger than the average return of mixed mutual funds of 3.12 percent as from 114 products and 102 fixed income mutual fund with 1.44 percent returns.

Bapepam-LK data February 2010 shows the total of mutual fund under management stood at IDR113.27 trillion with 70.81 billion floating units. (Bisnis/iaa/faa)