Dollar-denominated mutual funds still promising
Thursday, 23/09/2010 19:36:05 WIB
by: Ratna Ariyanti
JAKARTA: The opportunity to market dollar-denominated mutual funds still highly opens considering the current limited investment instruments and the growing chances to earn higher yield.
Head of Sales & Marketing of PT BNP Paribas Investment Partners, Vivian Secakusuma, said that the existing investment instruments such as dollar-denominated deposit still granted less optimum yield.
“Different from the pre-crisis condition where there had been various kinds of dollar-denominated alternative products offered by banking sector, the alternatives of investment products are somehow limited nowadays (post-crisis),” he said in Jakarta today.
The lower yield on dollar-denominated deposit may also encourage the investment managers to offer the dollar-denominated mutual funds.
As per 20 September, the average interest rate for three-year dollar-denominated deposit reached 1.2%, while the rate for a-year deposit is 0.92%.
BNP Paribas Investment Partners is now offering the fixed-income mutual funds namely BNP Paribas Prima USD. Vivian also affirmed that her company may produce another dollar-denominated mutual fund product next year.
The total managed fund of BNP Paribas Prima USD reached US$80 million until last Friday or higher than the targeted managing fund amounting US$20 million in the end of this year.
Fixed income mutual fund product launched by PT BNP Paribas Investment Partners on 9 August 2010 invested in government and corporate dollar-denominated bonds.
The low global interest and the improved Indonesia’s credit rating to investment grade becomes the other essential factors causing government bonds much more attractive to investors.
This product is offered through three banks as the selling agents. There will be two other banks to offer this product in the near future. (t02/wiw)