A staff walks in front of a screen that displays stock movements at the Indonesia Stock Exchange in Jakarta on March. (Antara Photo/Galih Pradipta)
Eastspring Indonesia Updates Its Fixed Income Funds
BY :JAYANTY NADA SHOFA
OCTOBER 22, 2020
Jakarta. Investment manager Eastsprings Indonesia has recently updated their fixed income mutual fund, the Yield Discovery Funds, with a new policy that allows dividend distributions every quarter.
Investing in a fixed income mutual fund can be an option amid the pandemic because they yield a regular income.
"Dividends will be distributed every three months in the middle of the month. They will be directly paid to the investor's account and the amount depends on the mutual funds management of each investor," Eastspring Indonesia president director Alan J. Tangkas Darmawan said in his official statement on Thursday.
The Eastspring Yield Discovery Funds puts 80 to 100 percent of its investment in bonds, whereas up to 20 percent is invested in a money market instrument. The fixed income fund preserves its capital while generating returns by placing the funds as debt securities in the capital market and in the form a money market instrument.
According to Alan, the Eastspring Yield Discovery fits moderate investors with a short to medium term investment of two to three years. Until September 2020, its managed fund has reached Rp 70.62 billion (around $4.8 million) with participation units of Rp 44.10 billion.
In terms of portfolio, Eastspring Yield Discovery has made government bonds their main underlying asset amounting to 92.62 percent. The rest is placed in cash and money market, he said.
"By looking at the customers and people's needs for a product capable of generating income quarterly, the Eastspring Yield Discovery Funds can be an option for an investor in managing the cash portion in the future," Alan added.
On Wednesday, the Eastspring Yield Discovery won a silver award for the best fixed income fund at the Bareksa Kontan OVO Fund Awards 2020. The award falls under the five-year period category for an asset under management of less than 100 billion.