Fund Managers Becoming Suspects, what is the fate of Mutual Funds?
The news about 13 Fund Managers who became suspects in the Jiwasraya case certainly catches our attention as Mutual Fund Investors. Some of you might ask, “What is the fate of mutual fund investments in the future?” especially if you hold an investment product from the Fund Managers mentioned in the report.
Before you panic, let’s look at some facts!
1. 13 vs 2,211 mutual funds with a nominal asset under management of IDR 12.16 T vs IDR 474 T
The total investment of Jiwasraya mutual funds which is claimed as a potential state loss according to BPK (Audit Board of the Republic of Indonesia) includes 13 mutual funds totalling IDR 12.16 trillion. Compare this amount with the total asset under management of all mutual funds in Indonesia, which is IDR 487 trillion from 2,211 mutual funds according to APRDI (Indonesian Mutual Funds and Investment Performers Association) as of June 24, 2020. The graphs below show that the 13 mutual funds counted for less than 1% and the total asset under management of Jiwasraya is less than 3% of the total asset under management in Indonesia.
2. Single Investor Mutual Funds vs. Public Mutual Funds
All mutual funds related to this case are single investor mutual funds, meaning that these mutual funds are not sold to the general public.
3. Clarification from Authorities and Related Parties
Several related Fund Managers have provided clarification regarding this issue. This case does not affect the company’s overall operations and that other non-related mutual fund products are still operating as normal. The Indonesian Mutual Funds and Investment Performers Association (APRDI) and the Attorney General’s Office stated that the management of mutual funds, in this case, is managed separately hence does not affect the other managed mutual funds.
How does Moduit respond to this?
Regardless of the situation, Moduit has always prioritized good Risk Management strategy and processes. One of the ways is to do product curation on all of Moduit’s products in its platform. Moduit is committed to ensuring that our Partners, the Fund Managers and their products available in the platform is the best for Moduers, and to provide a sense of safety and comfort when investing.
The definition of curation itself is closely related to activities exhibiting objects in museums or galleries. The process of curating mutual fund products in our platform is carried out during the initial selection of Fund Managers and their products. Then on a periodic basis, we rigorously continue to monitor all of our products and their respective Fund Managers.
How does Moduit curate its products?
The curation process is based on our team’s experience in the Capital Market field for more than 15 years. Based on this experience, a parameter was created for the curation which we like to call it as the PRIME Model (Yes, sounds like a Transformer!). Under normal market conditions, Moduit has taken steps curating 73 mutual fund products from 16 Fund Managers in the Moduit platform including PT Pinnacle Persada Investama (Pinnacle) mentioned in the news.
Moduit has been coordinating intensively with Pinnacle Management and has received clarification that the mutual funds discussed in the recent news are managed separately to those sold to the general public, hence this does not affect the operations of the 4 Products from Pinnacle in Moduit platform. In addition, Moduit continues to monitor the progress of this case and actively coordinates with the Indonesian Mutual Funds and Investment Performers Association (APRDI) with other related parties.
Who does the curation in Moduit?
The curation process in Moduit is carried out by a team of experts called the Investment Committee Team. This team has been through several financial crises including the 2008 Global Financial Crisis. This valuable experience has made Moduit very careful in carrying out its operational activities, including the selection of Fund Managers and their products.
Let’s get acquainted with the Moduit Investment Committee Team members:
Jeffry Lomanto (CEO / Founder)
Before founding Moduit, Jeffry has had more than 15 years of experience in the Wealth Management Industry including Banking, Insurance, Asset Management and Securities.
Stefanus Adi Utomo (CMO)
Started out his career as an Auditor, Stefanus has a broad experience in the field of Wealth Management for more than 15 years. Stefanus is also a certified CFP (Certified Financial Planner) and CPC (Certified Professional Coach).
Manuel Adhy Purwanto (Investment Connoisseur Moduit)
Before joining Moduit, Manuel had spent 12 years in the Wealth Management Industry, primarily as an Investment Expert. Manuel also holds a CFP (Certified Financial Planner) certification.
What is your response Moduers, after reading the article above? Hopefully, you will be more assured to continue to invest using the Moduit app. We always try to assure our users feeling safe and comfortable when investing. For Moduers who want to upgrade their knowledge in investments, and especially on mutual funds, please check out the link below: