Bahana TCW And Bank DBS Indonesia Launch Sharia Mutual Fund Aiming At US Stock Market

Launch of Bahana TCW and Bank DBS Indonesia mutual funds. (Photo: screenshot of Bahana TCW)

JAKARTA - A subsidiary of state-owned insurance and guarantee holding company PT Bahana TCW Investment Management and Bank DBS Indonesia launched the Bahana US Opportunity Sharia Equity USD Sharia Mutual Fund.

By cooperating with global investment asset management company Franklin Templeton Ltd., the two national financial entities offer the first and only sharia mutual fund product in Indonesia with a focus on the United States stock market.

It is stated that the financial instruments concentrate on the technology and health sectors. This product is also claimed to be in accordance with the principles of environmental, social, and good corporate governance (environment, social & good corporate governance/ESG).

President Director of Bahana TCW Rukmi Proborini said that the launch of this product was a response to the high interest of Indonesian investors to buy assets with global health and technology stocks.

"For this reason, we open this access for investors by working with Franklin Templeton, one of the best global investment companies," he said in a webinar held on Wednesday, July 21.

Similarly, Head of Investment Product & Advisory at Bank DBS Indonesia, Djoko Soelistyo, said that the instruments released could enrich the public's choice of investment products.

"This product offers investment flexibility and flexibility in developing portfolios, starting from easy Single Investor Identity (SID) registration, buying, selling, and switching online so as to support customers in seizing opportunities and optimizing their investment portfolios," he said.

Meanwhile, Regional Head for Southeast Asia Franklin Templeton Dora Seow revealed that this collaboration is the first time the company has done for Indonesian investors.

"Our collaboration with Bahana TCW is to launch a mutual fund product that focuses on a positive growth strategy for the US market and refers to ESG principles," he said.

Dora added, in the medium and long term, this product is believed to outperform the Russell 3000 benchmark index so that it can be a good investment diversification option for Bank DBS Indonesia investors.

"This opportunity provides a foundation for us to provide more competitive opportunities for the Indonesian market and we are committed to continuing to expand our services and products for the Indonesian market," he said.

For information, investors can make transactions on the latest Bahana US Opportunity Sharia Equity USD Mutual Fund product through all DBS Indonesia Bank channels as partners appointed as securities selling agents, including the Digibank Mutual Fund channel which was launched in early July.

Meanwhile, the mutual fund product that is part of this collaboration is believed to have more competitive returns because the securities traded are on the United States stock market.

Stock trading in the United States such as the New York Stock Exchange and the Nasdaq recorded higher yields than stock markets in other developed countries, such as Europe, Japan, and historically developing countries.