PT Mandiri Manajemen Investasi Appoints Citi Indonesia
as the First Selling Agent of the
Mandiri Global Sharia Equity Dollar
As a leading global bank, Citi Indonesia is trusted to sell and serve as a custodian bank for the Mandiri Global Sharia Equity Dollar
Following to the launch of Mandiri Global Sharia Equity Dollar by PT Mandiri Manajemen Investasi (Mandiri Investasi) on 26 July, 2016, Citi Indonesia on 30th November 2016 appointed as the first selling agent for the sale of this latest Mutual Fund from Mandiri Investasi. The Mandiri Global Sharia Equity Dollar (MGSED) is the first Sharia Equity Fund to invest in foreign capital markets to be issued by a national investment management firm in Indonesia.
Batara Sianturi, Chief Executive Officer Citi Indonesia stated, "We are delighted with the opportunity, as well as the trust that have been given by Mandiri Investasi to be the first selling agent of Mandiri Global Sharia Equity Dollar in Indonesia. As a global bank with a proficient in wealth management, Citi is optimistic that the sale of this Mutual Fund will open up access to investors, including our Citigold customers in Indonesia, for diversifying their assets in global markets. In line with Citi’s mission of enabling growth and economic progress, we extend our full support to the development of sharia capital markets in Indonesia."
Improving global economic conditions have presented a good opportunity for Mandiri Investasi to launch an offshore based sharia Mutual Fund. The Mandiri Global Sharia Equity Dollar is expected to become a successful alternative investment instrument denominated in US Dollars as well as a suitable option for investing in sharia based US Dollar assets. This Mutual Fund will allocate its portfolio to foreign stock markets.
Muhammad Hanif, President Director of Mandiri Investasi, said, "This Mutual Fund can be used as a way for prospective investors to fully invest in offshore stock markets. In addition, this Mutual Fund adheres to the principles of sharia which require the selection process for foreign stocks in the Mutual Fund portfolio to be very prudent and responsible, thus adding to the uniqueness and distinctive value of the product."
Muhammad Hanif also stressed the importance of the partnership between Mandiri Investasi and Citi in the sale of this product. "By teaming up with a global partner such as Citi, Mandiri Investasi is confident of building a strong synergy in the portfolio management of the Mandiri Global Sharia Equity Dollar. Beside acting as a selling agent, Citi's appointment as a custodian bank for the Mandiri Global Sharia Equity Dollar is based on its experience and commitment of supporting the sale of sharia Mutual Funds in Indonesia."
Harsya Prasetyo, Head of Retail Bank Citi Indonesia, also enthusiastically welcomed the opportunity given to Citi Indonesia to sell the Mandiri Global Sharia Equity Dollar. "The appointment of Citi as the first selling agent of this global sharia Mutual Fund from Mandiri Investasi will extend Citi's track record in providing sharia Mutual Fund services in Indonesia. This is consistent with the initiatives by mutual fund industry players which are supported by Financial Services Authority (OJK) to increase the adoption of sharia products. Citi Indonesia consistently participates in supporting the growth of capital markets for innovative sharia mutual fund products."
Sharia Mutual Funds have been established since 1997 in Indonesia, but their presence has never been as big as that of conventional Mutual Funds. However, over the last 10 years, sharia Mutual Funds in Indonesia has begun to yield excellent results. With the issuance of new regulations by OJK on sharia investments at the end of 2015, global sharia Mutual Funds may now invest up to 100% in overseas capital markets. Previously, these Mutual Funds could only invest up to 15% abroad.
"We are confident that going forward, the Mandiri Global Sharia Equity Dollar product will become a profitable investment. In collaboration with Citi Indonesia, we are fully committed to promoting the Indonesian capital market so that it sits at the forefront in terms of competition among international capital markets. We expect this product to be well received and is able to seize long-term investors," said Muhammad Hanif in closing.
Mandiri Investasi is also collaborating with leading global investment management firm J.P. Morgan Asset Management, which is acting as a technical advisor in managing the Mandiri Global Sharia Equity Dollar global portfolio, with the objective of obtaining potentially attractive returns in US Dollars. J.P. Morgan Asset Management is set to provide input as well as global research access to Mandiri Investasi. J.P. Morgan Asset Management has vast experience in managing global portfolios backed by complete and comprehensive research from around the world. The collaboration between Mandiri Investasi and J.P. Morgan Asset Management is certain to provide a strong synergy in the management of the Mandiri Global Sharia Equity Dollar global portfolio.