Excellence across asset class

Each year brings new challenges and 2022 was no exception. Investors in Indonesia and worldwide had to once again face an entirely unpredictable mix of events, including rising inflation, higher interest rates, political instability, and war, affecting portfolio returns unlike before.

While there are reasons to be pessimistic going into 2023, Indonesia evidently, still presents opportunity for investors seeking long-term growth, income, or both. As there is the potential for market volatility in the near term, we have picked a selection of fund ideas that we think are more conservative or have the potential to offer some stability during tougher times. 

Following weeklong analysis of large, leading influential funds we present a shortlist of top 5 performing funds in Indonesia in the following asset classes:

  • Balanced Fund
  • Capital Protected Fund
  • Money Market Fund
  • Equity Fund
  • Fixed Income Fund

The YTD returns were invariably based on the calendar year for 2022, and the outcome is most reflective of how these funds have outperformed market benchmarks to deliver returns well above and beyond other funds in the same asset space.

We begin with equity where PT Bahana TCW Investment Management was able to deliver gravity defying returns during a year most will rather forget. Different funds use different investment styles and Bahana TCW uses a uniquely defensive approach that provides plenty of ballast in turbulent markets. Compared and benchmarked against up to 10 leading fund managers in Indonesia, the Bahana ETF Bisnis 27 was able to deliver an astounding 17.69% return that not only far exceeded average market returns in Indonesia but also surpassed performance across the region, making PT Bahana TCW Investment Management a preeminent leader in the equity space.

Within the realm of balanced funds, Schroder Investment Management Indonesia was by and far, the leader across multiple balanced funds it houses, demonstrating its agility across two or more asset classes. The team invests flexibly but aims to keep things simple by focusing on a mix of asset classes focused on measurable long-term growth, however turbulent. In Indonesia therefore, Reksa Dana Schroder Dynamic Balanced Fund delivered an impressive 8.07% return during a year which was nothing short of carnage, both in the equity and fixed income space, making Schroder Investment Management Indonesia the undisputed leader in the balanced fund space.

With capital protected funds, PT Bahana TCW Investment Management led the way with its Bahana Core Protected Fund 132, delivering an outstanding return of 9%. With a wide ranging portfolio that offers plenty of diversification, the highly experienced team at Bahana TCW was able to position itself before the ascent. In fact within the top 10 funds in this space, at least five capital protected funds belonged to Bahana TCW, proving unequivocally the leading fund manager’s in-house expertise in not only protecting the initial capital but also delivering capital gains exceeding local benchmarks by a mile.

In the fixed income realm, Syailendra Capital proved its mettle by generating above-market returns during a calendar year that was nothing short of a bloodbath for fixed income funds. Focused on three key aims, the first being not to lose money over a 12-month period. The second to deliver an inflation-beating return over the long term, and third, to do this with low volatility.Thanks in large part to its specialist experience in the fixed income space, Syailendra Pendapatan Tetap Premium (SPTP) rose to shine at the top of the league with a 7.6% return, nudging a large number of funds aside to reach the pole position in Indonesia.

In the money market space, Sucor Asset Management proved to be a safe anchor providing investors a safe avenue for investing in a secure and highly liquid, cash-equivalent, debt-based assets arena. Leveraging on internal resources and expertise to track relevant indices as closely as possible, Sucor Asset Management performed well while  interest rates and inflation were rising.  In a year where investors found themselves scrambling for the exits, Sucorinvest Money Market Fund was able to deliver a calm and respectable 4.14% return, providing consistency and value investing when the right fund manager is at the helm.

*market return largely based on 20 Dec 2021-20 Dec 2022