PT Indo Premier Investment Management (”IPIM”), an Investment Management company that initiated an Equity Mutual Fund product traded in the Stock Exchange or better known as ETF (Exchange Traded Fund), today on 29 January 2014 has signed the use of SMinfra18 Index in Indonesia Stock Exchange (”BEI”). The signing is a part of a series of process of using SMinfra18 Index as a benchmark of the 5th IPIM ETF product.
The signing of the Use of SMinfra18 Index is done by the President Director of IPIM, Mr. John D. Item, with the President Director of PT Sarana Multi Infrastruktur (Persero) (”PT SMI”), Ms. Emma Sri Martini. The event is witnessed by the Board of Directors of BEI, the Commissioner and Board of Directors of IPIM, the Board of Commissioner and Board of Directors of PT SMI, the Board of Directors of PT Indo Premier Securities as the Participant Dealer, SMinfra18 Index Independent Committee, and representatives from Deutsche Bank AG Jakarta Branch as the Custodian Bank.
Different from the previous ETF products (R-LQ45X, XIIT, and XIJI) where the index used as a benchmark belongs to and issued by BEI, IPIM will use the index belongs to PT SMI, SMinfra18 Index, for the new ETF product.
SMinfra18 Index is an index that measures price performance of 18 stocks listed in BEI which businesses are in infrastructure sector and its support. It is expected that SMinfra18 Index can be a reference for investors who want to invest on stocks issued by those who participate in infrastructure development, that have good fundamental factor, big market capitalization, as well as high free float of stocks and high activities of stock transactions (value, frequency, and transactional days).
The screening process or constituent selection of SMinfra18 Index is arranged by BEI and PT SMI based on market data and good corporate governance of each issuer that meets the criteria. SMinfra 18 Index is also reviewed by an Independent Committee that has expertise and experience in infrastructure and capital market sectors; they are Bacelius Ruru SH. LLM, Prof. Firmanzah Ph.D, and DR. Aviliani.
BEI welcomes well the plan to launch SMinfra18 ETF as stated by Ito Warsito, President Director of BEI, “BEI welcomes very well the collaboration between PT SMI as the owner of SMinfra18 Index and IPIM as an experienced company in managing ETF in launching a new ETF product, SMinfra18 ETF. We hope SMinfra18 ETF can enliven Indonesia’s capital market especially in infrastructure sector as well as give another option for the investors to invest during the uncertain market condition at the moment.”
In a market condition with full of uncertainties, ETF can help the investors fast to take action in dealing with the market fluctuation that is happening now. “We hope the Premiere of SMinfra18 ETF can represent stock portfolio with good liquidity from issuers in infrastructure sector so that it can be the right choice for the investors for diversification. Currently, we have proposed the product license and are now still waiting for the effective license from the Financial Services Authority (“OJK”/Otoritas Jasa Keuangan )”, said John D. Item, the President Director of IPIM.
John, who in the last two years leads IPIM, said, “Infrastructure has a huge opportunity to the future. Even the smallest improvement made in infrastructure sector will give positive impact to the Indonesia’s economic growth. Through SMinfra18 ETF Premiere product, the Investors will get 18 excellent stocks contained in SMinfra18 Index, and only with one click, the investors indirectly also participate to support Indonesia’s economic. Furthermore, ETF has a distinctive advantage where the investors can immediately add or lessen the stock portion in their portfolio when the stock market condition instantly goes up or down and thus the investors can realize their profit or avoid loss instantly as well”, said John who has successfully increased IPIM management fund from below Rp100 billion to Rp1,4 trillion within 2 years.
The President Director of PT SMI, Emma Sri Martini, greeted well the plan to use SMinfra18 Index, ”We hope that the use of SMinfra18 Index as the reference base of IPIM ETF product can be the first step in developing other capital market products in the future. ETF, Mutual Fund, as well as other products that are based on SMinfra18 Index can be a new option for the capital market investors to invest in stocks where the issuers participate in the infrastructure development in Indonesia.”
ABOUT EXCHANGE TRADED FUND (“ETF”)
Exchange Traded Fund (“ETF”) is an investment product in the form of Mutual Fund in a scheme of Collective Investment Contract (KIK/Kontrak Investasi Kolektif) and has an advantage. It can be exchanged/ traded in a Stock Exchange similar to regular stock transaction. For investors either institution or retail as a part of their investment strategy, ETF can be used to reduce individual stock fluctuation risk because ETF is already optimally diversified. Another advantage from investing in ETF is the high flexibility due to the ETF’s Net Asset Value (NAV) is valuated every time, so that it shows transparency and freedom for the investors to trade every time throughout the market hours.
ABOUT PT INDO PREMIER INVESTMENT MANAGEMENT (”IPIM”)
PT Indo Premier Investment Management (“IPIM”) is a subsidiary of PT Indo Premier Securities. IPIM was established in 2003 and have obtained license as an Investment Manager from the Capital Markets Supervisory Board (Bapepam & LK). Since 18 January 2011, IPIM has done a process of spin-off and renewed its license as an Investment Manager.
With full support from the parent company, where PT Indo Premier Securities is a company specializing in technological advances in making innovation in the capital market industry, it makes IPIM possible to make innovation in creating a unique product with technological utilization as well as strong back office system.
IPIM is an Investment Manager that launched the first ETF Equity Fund in Indonesia, which was Premier ETF LQ-45 on 18 December 2007. Aside from the newly launched ETF Mutual Fund, Premier ETF Shariah JII and Premier ETF Indonesia Consumer, our primary Mutual Fund products are Premier ETF LQ-45 (Index based), Premier ETF IDX30 (Index based), Premier Campuran Fleksibel and Premier Makro Plus.
Currently, IPIM has 14 Mutual Fund products, wherein the last 1 year IPIM has issued 5 new Mutual Funds. The objective of issuing new Mutual Fund products is to enrich the variety of Mutual Funds that can be chosen by the investors following their investment needs. Mutual Fund products of IPIM among others are: Fixed Income Mutual Fund, Mixed Mutual Fund, Equity Mutual Fund, and ETF, as well as Protected Mutual Fund.
ABOUT PT SARANA MULTI INFRASTRUKTUR (PERSERO) (”PT SMI”)
As a catalyst in the infrastructure development, PT Sarana Multi Infrastruktur (Persero) (“PT SMI”) has its 100% stocks owned by the Government of RI under the Ministry of Finance. In the beginning, the establishment of PT SMI was to carry mandate as an Infrastructure Financing Company. In line with the development of needs for infrastructure development, it is not only involving Financing & Investment sides. Thus, PT SMI expands its business scope by providing Advisory Services and Project Development Services.
The three business pillars of PT SMI (Financing & Investment, Advisory and Project Development) are the total solution in the infrastructure development in Indonesia. In order to give added value in the infrastructure development, PT SMI always gives effort to increase its capacity through partnership with private party or multilateral institution. One of the efforts to increase the capacity is by improving active participation in the capital market.
Since the establishment on 26 February 2009, the infrastructure project portfolio of PT SMI has covered almost all over Indonesia, with various sector diversification in accordance with the provision in PMK No. 100/PMK.010/2009 Year 2009 concerning Infrastructure Financing Company. Until the end of 2013, PT SMI had given a total financing commitment of around Rp4.4 trillion for a total project cost of Rp38.89 trillion and generated a multiplier effect of 8.7 times. Furthermore, PT SMI also keeps promoting infrastructure development modality with Public-Private Partnership Scheme (PPP). Through preparation of PPP SPAM Umbulan PPP Project, Soekarno Hatta Airport Railways PPP Project and Batam Waste Management PPP Project, PT SMI actively participates in developing PPP projects in Indonesia.
For further information, please contact:
Caterine Astried Swastika
PT Indo Premier Investment Management PT Sarana Multi Infrastruktur (Persero)
Telp. +62 (21) 5793-1260 Telp. +62 (21) 5785-1499
Fax. +62 (21) 5793-1222 Fax. +62 (21) 5785-4298
Hp. +62 815-935-6887 Hp. +62 811-19-7750