The new equity fund, named Manulife Saham SMC Plus, will invest in select small and mid cap stocks. Following the 27 February 2013 launch, the Manulife Saham SMC Plus fund will be open for investment with a minimum purchase of Rp100,000 (one hundred thousand rupiah).
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"We understand that some investors have a higher level of risk tolerance and are willing to accept higher risk in return for potentially higher return. We are responding to this need," said Legowo Kusumonegoro, President Director of MAMI. He went on to explain "The Manulife Saham SMC Plus fund could potentially have higher volatility than equity mutual funds that invest in big cap stocks. Therefore, investors in this new mutual fund should have a longer investment horizon as the influence of volatility tends to decrease over time."
Putut E. Andanawarih, Director of Business Development of MAMI, pointed out that for each of the past seven years the Indonesia Composite Index (JCI) has posted annual returns in excess of the LQ45 index of large-cap stocks. This indicates that small and mid cap stocks have played an active role in pushing up the JCI. Putut explained: "This is in line with the incremental purchasing power and consumption levels of retail investors in Indonesia, as the growing middle class has improved the sustainability of small mid cap companies. In 2003, Indonesia’s middle class included 81 million people, but this had grown to 131 million by 2010 and is projected to reach 150 million in 2014. In our view, this demographic development supports continued growth in investment in small mid cap stocks."
The Manulife Saham SMC Plus fund’s primary focus is to take advantage of investment opportunities in select small- and mid-cap stocks. However, the investment strategy allows for some degree of investment in big cap stocks. This flexibility allows the fund to respond to varying market conditions.
The Manulife Saham SMC Plus fund will be managed by MAMI’s investment team, which is very experienced and has received numerous industry awards for its reliable investment management. The team, led by Alvin Pattisahusiwa, Director of Investment MAMI, has significant experience in managing similar products. Alvin explained:,"We have been managing a small cap portfolio with the same investment strategy. That portfolio delivered returns of over 25% over the past year (as of 31 December 2012), significantly surpassing the 12.5% return of its benchmark index in the same period. We are confident that MAMI’s strong investment team and investment discipline will enable the Manulife Saham SMC Plus to provide optimal returns."
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By GlobalDataThe Manulife Saham SMC Plus fund will allocate 80 – 100% of its assets to equity instruments and 0 – 20% to domestic money market instruments. Manulife Saham SMC Plus will be distributed directly to the public by MAMI’s licensed relationship managers.
