Press Release Launching of PREMIER ETF SYARIAH JII (XIJI) & PREMIER ETF INDONESIA CONSUMER (XIIC)
April 30, 2013 Tinggalkan komentar
The Launching of
PREMIER ETF SYARIAH JII (XIJI)
&
PREMIER ETF INDONESIA CONSUMER (XIIC)
At the Indonesian Stock Exchange trading board
Jakarta, 30 April 2013
After PT Indo Premier Investment Management (“IPIM”) previously introduced Index-based Exchange Traded Fund (“ETF”) LQ45 and IDX30 in Indonesia, IPIM again shows its commitment by launching 2 new ETF products, i.e. the first Equity-based ETF Syariah and the first ETF featuring Consumer-themed active management. The products are called Premier ETF Syariah Jakarta Islamic Index (“JII”) with its ticker code: XIJI and Premier ETF Indonesia Consumer with its ticker code: XIIC. Both ETFs are expected to provide an option for Investors to take opportunities in the Indonesian stock market movements.
“We fulfil our promise to the Investors and the Capital Market Authorities to broaden the variety of ETF products in Indonesia as well as fulfilling our dreams at IPIM, as we have always believed that the Indonesian Investors are entitled to access to investment alternatives that flexible, easy and inexpensive for enabling the achievement of their target portfolio returns”, said John D. Item, President Director of IPIM.
Premier ETF Syariah JII was born 5 months after IPIM received the Syariah Opinion from the Syariah advisor appointed by the Indonesian Council of Ulama’s National Sharia Board (Dewan Syariah Nasional Majelis Ulama Indonesia, “DSN-MUI”). XIJI underlying assets refer to JII that is a Syariah stock index issued by the Indonesian Stock Exchange (“BEI”), containing 30 stocks that meet the criteria set by the Financial Services Authority (“OJK”).
Another product launched concurrently today is Premier ETF Indonesia Consumer. XIIC is the first actively managed Equity ETF product, in which the Investment Manager has the authority to decide the issuers to be included in the XIIC portfolio. For this purpose, IPIM chooses Consumer-Related theme motivated by 1) the demographic structure of Indonesian population is dominated by productive-age[1] labour force, 2) the Growth of Gross Domestic Product (GDP) which is expected to be steady at the level of 6-7% in the next 5 years and 3) the GDP composition which is still dominated by domestic consumption.[2]
For these 2 ETF products, IPIM partners with Deutsche Bank AG, Jakarta branch as the Custodian Bank and PT Indo Premier Securities as the Authorized Participant.
“Indo Premier Securities as an Authorized Participant always improves the trading mechanism of Premier ETF to enhance trading liquidity both in primary and secondary markets. We are proud to continuously support IPIM in ETF product innovation,” said Director of Indo Premier Securities, Noviono Darmosusilo.
ETF can be viewed from two sides: 1) For Mutual Fund Investors, ETF is like ordinary Equity Mutual Fund, with the advantage that they can be traded at any time during BEI’s trading hours, therefore the Net Asset Value (NAV) can be known without having to wait until end of the day, and 2) for equity Investors, ETF has a ticker code and can be traded like stocks, with the advantages of instant diversification as it consists of well-capitalized and liquid equity portfolio thereby reducing the risk of trade volatility and risks present in individual stock investment.
With the advantages combined from the two investment instruments, ETF can then be utilized by foreign and domestic Investors in the face of today’s stock market volatility. The advantages of ETF in the forms of full transparency, high flexibility, continues pricing (price/NAV calculation done continuously during stock exchange trading hours) and the speed of execution through the application of cutting edge technology, allows Investors to have full control in each market condition.
“Through XIJI, Investors can own 30 shares of leading Syariah stocks in the Jakarta Islamic Index (JII) with only one click. The Investors can quickly increase or decrease their equity exposure when stock market condition fluctuates, enabling Investors to quickly take profit advantage or avoid loss. Meanwhile, through XIIC, Investors can easily own leading stocks of consumer-related sector quickly and efficiently in accordance with their portfolio management strategy.
The transparency of ETF portfolio is maintained as the portfolio list is uploaded to BEI website and www.PremierReksadanaOnline.com each trading day so that Investors know the whole contents of the ETF portfolio and therefore improve the accuracy of the overall Investor-owned portfolio,” confirmed John.
BEI Director, Ito Warsito explained: “Premier ETF Syariah JII with XIJI ticker code and Premier ETF Indonesia Consumer with XIIC ticker code launched today are expected to be able to facilitate diversified equity trading to Indonesian and foreign Investors alike. We see XIJI and XIIC can represent large capitalized stocks with good liquidity. Since the first ETF launched 20 years ago in the United States of America, the world has had more than 3,300 ETFs. In Asia Pacific alone, more than 480 ETFs have been traded, three of which are issued and traded in the Indonesian stock market. The additional two new ETFs are expected to provide opportunities for local Investors to excel in their investment portfolio management through fast execution and instant diversification features of ETF”.
Elwin Karyadi, Indonesia Head of Global Transaction Banking and Direct Securities Services from Deutsche Bank AG, Jakarta Branch added: “We are pleased to have been selected as the custodian bank by IPIM for their newly launched ETF products in Indonesia, we look forward to supporting IPIM while they grow their ETFs and other funds in this dynamic and exciting market.”
“XIJI and XIIC shall provide new colour in equity investment and simplify our investment methodology”, John closed with enthusiasm.
ABOUT INDO PREMIER INVESTMENT MANAGEMENT
PT Indo Premier Investment Management (“IPIM”) is a subsidiary of PT Indo Premier Securities. IPIM was founded in 2003 and has been given the license as an Investment Management Company by the Capital Market Supervisory Agency (Bapepam). Since January 18, 2011, IPIM was spun-off and has renewed its Investment Management license.
IPIM is fully supported by its parent company, PT Indo Premier Securities, a company that promotes excellence in applied technological innovation in the Indonesian capital market industry. This has allowed IPIM to innovate by creating a unique product with the use of technology as well as a strong back office system.
IPIM as a pioneering Investment Management Company launched the first ETF in Indonesia, namely Premier ETF LQ-45 on 18 December 2007. In addition to the newly launched Premier ETF Syariah JII and Premier ETF Indonesia Consumer, our flagship mutual funds include Premier ETF IDX30 (Index-based), Premier Campuran Fleksibel (balanced fund) and Premier Pasar Uang (money market fund).
ABOUT DEUTSCHE BANK AG, JAKARTA BRANCH
Deutsche Bank AG, Jakarta Branch as the Custodian Bank, is a branch office of Deutsche Bank Aktiengesellschaft (“Deutsche Bank AG”), a banking institution organised and existing under the laws of the Federal Republic of Germany, having its domicile and principal place of business at Frankfurt am Main, the Federal Republic of Germany.
Deutsche Bank AG, Jakarta Branch – Direct Securities Services has obtained an approval to act as a custodian in Indonesian capital market from Bapepam in 1994.
The Direct Securities Services business of Deutsche Bank AG, Jakarta Branch provides custody services, fund administration services and other related services to both local and foreign clients, such as global custodians, asset management companies, insurance companies, mutual funds, pension funds, investment banks, securities’ broker dealers, and corporations.
For further information, please contact:
Caterine, Head of Marketing Communications
PT Indo Premier Investment Management
Phone: +62-21-5793-2360
Fax: +62-21-5793-1222
Mobile: +62-815-935-6887
Email: caterine@ipc.co.id
[1] + / – 65% of the Indonesian total population is between 15 to 64 years old, Central Bureau of Statistics census
[2] + / – 55% in the last 3 years, Central Bureau of Statistics 2010 – 2012
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