- ACCOUNT OPENING FORM (FORMULIR PEMBUKAAN REKENING)
Account Opening Form is an original form that must be completed and signed by a potential purchaser before purchasing the first Mutual Fund and Participation Unit.
- AFFILIATION (AFILIASI)
- family relationship by marriage and blood to the second degree, both horizontal and vertical;
- relationship between a party and the employees, Directors, or Commissioners of the party;
- relationship between 2 (two) companies that share one member of the Board of Directors or the Board of Commissioners or more;
- relationship between a company and a party, both directly and indirectly, that controls or is controlled by the company;
- relationship between 2 (two) companies that are controlled, both directly or indirectly, by the same party; or relationship between the company and the controlling shareholder.
- BOND (OBLIGASI)
A debenture issued through a Public Offering by a company or government with a period of more than one year of which income is provided as interest coupon and the payment of the nominal value (loan package) when due. Bond may also be traded at a value in between the nominal value, which in general depends on the applicable deposit interest rate.
- BUSINESS DAY (HARI KERJA)
Business Day is Mondays to Fridays, except for national holidays designated by the Government of the Republic of Indonesia.
- CAPITAL GAIN (CAPITAL GAIN)
The value increase of an asset from the difference between the sale and purchase values. Such value increase is not generated until the asset is sold.
- DEPOSITS (DEPOSITO)
A third party savings in a bank, which in accordance to the agreement between the depositor and the bank, can only be withdrawn after a certain period with a previously agreed interest.
- DIVIDEND (DIVIDEN)
The profit distributed by a company to the shareholders. The amount is not set/promised, but depends on the company’s financial condition.
- DSN-MUI (DSN-MUI)
DSN-MUI is the National Sharia Board of the Indonesian Ulema Council.
- EFFECTIVE (EFEKTIF)
Effective is the fulfillment of all procedure and requirements of Listing Statement for the Public Offering of Mutual Fund in the Form of Collective Investment Contract stipulated in the Capital Market Law and the Regulation of BAPEPAM & LK No. IX.C.5 and the Attachment to the Decision of the Chairman of BAPEPAM & LK No. Kep-430/BL/2007 dated December 19, 2007, on Listing Statement for the Public Offering of Mutual Funds in the Form of Collective Investment Contract (Regulation of BAPEPAM & LK No. IX.C.5). The effective statement of the Listing Statement for the Public Offering of Mutual Funds in the Form of Collective Investment Contract will be issued by BAPEPAM & LK.
- EQUITY (EKUITAS)
It is a negotiable paper evidencing ownership of a company. The public/Mutual Fund may partially own a company that has gone public by purchasing shares through an Initial Public Offering or at a secondary market in the stock exchange. Shareholders expect profit in the form of capital gain if the share sales price is higher than the price at the time of purchase as well as from the dividend distributed by the company.
- EVIDENCE OF PARTICIPATION UNIT OWNERSHIP (BUKTI KEPEMILIKAN UNIT PENYERTAAN)
Evidence of Participation Unit Ownership is a Confirmation Letter of Participation Unit Transaction.
- EXCHANGE DAY (HARI BURSA)
Exchange Day is every day in which stock trading is carried out in the Stock Exchange, namely Mondays to Fridays, save for national holidays or days designated as a holiday by the Stock Exchange.
- IJARAH (IJARAH)
A lease contract between a bank (muaajir) and a lessee (mustajir). Upon the expiry of the lease period, the lease object is returned to the muaajir. In general, banks use an ijarah wa itiqna contract (muntahiyah bittamlik), which is a lease between a muaajir and a mustajir followed by an option at a designated time for the ownership of the object to be assigned to the mustajir.
- INSTRUMENT (INSTRUMEN)
Financial products transacted by the Investment Manager in the investment, including bonds, stock, debentures, and deposits.
- INTEREST (BUNGA)
The return generated from the allocation of investment into deposits/giro as well as Debenture.
- INVESTMENT (INVESTASI)
The allocation or purchase of financial asset with the consequence of a return and certain risks.
- INVESTMENT MANAGER (MANAJER INVESTASI)
A party with the business activity of Securities Portfolio management for customers or Collective Investment Portfolio management for a group of customers, except for insurance companies, pension funds, and banks, which carry out its business activities based on the laws and regulations. An Investment Manager may begin operation upon the obtainment of a permit from BAPEPAM & LK. For Mutual Fund, the Investment Manager is responsible to manage the investment portfolio for a group of customers purchasing a Participation Unit in compliance with Investment Policy based on the description in the prospectus.
- INVESTOR (INVESTOR)
The party investing funds.
- ISTISHNA (ISTISHNA)
Sale and purchase contract (masnu) between a bank (shani) and the order placer (mustashni) or a debtor in conventional banking, where the object ordered is not yet available. For example, for the construction of a factory, the order placer will appoint a contractor to supply the goods for the factory. The specification, variants, quality, amount and price of the order are agreed to in the beginning of the contract and the payment will be made as agreed.
Power of attorney from the power grantor (muwakil) to the grantee (wakil) to carry out a duty (taukil) on behalf of the grantor.
- LISTING STATEMENT (PERNYATAAN PENDAFTARAN)
Listing Statement is a document that must be submitted by an Investment Manager to BAPEPAM & LK for Mutual Fund Public Offering in the form of Collective Investment Contract as stipulated in the Capital market Law and the Regulation of BAPEPAM & LK No. IX.C.5.
- LIQUIDITY (LIKUIDITAS)
The ability of a person or a company to meet its obligation or debt outstanding with its current assets. In Mutual Fund, the Investment Manager manages liquidity to fulfill the Participation Unit obligation to the Investors.
- MONEY MARKET (PASAR UANG)
A market where short-term fund is traded in the form of negotiable paper with a term of less than one year, such as commercial paper, etc.
- MUDHARABAH (MUDHARABAH)
An agreement between an investor and an entrepreneur. All profits gained will be distributed in a certain agreed ratio. The risk of loss is solely borne by the bank except for the loss incurred by mismanagement, negligence and deviation of the entrepreneurs such as misappropriation, fraud and misuse.
- MUDHARABAH DEPOSITS (DEPOSITO MUDHARABAH)
A customer storing funds in the bank for a certain period of time. The return from the investment on the customer’s fund by the bank will be divided between the bank and the customer under a certain ratio.
Joint venture. This concept applies to the partnership model. The profit gained will be distributed in an agreed upon ratio, while the loss will be divided based on the ratio of the equity owned by each party.
- NET ASSET VALUE (NAV) (NILAI AKTIVA BERSIH (NAB))
NAV is the fair market value of a Security and other assets from a Mutual Fund deducted with all payables. NAV is the portfolio value pursuant to the market price and the price of each security in the portfolio minus the payables and the costs borne by the Mutual Fund, including Investment Manager and Custodian Bank Fees, transaction fee, tax expense, etc. The NAV determines the value or price of each Participation Unit after being divided with the amount of issued Participation Units. An investor purchases or sells the Participation Unit owned at the NAV price/Participation Unit on the corresponding day. The NAV price/Participation Unit changes every day and may be monitored on the paper, such as Bisnis Indonesia and Harian Neraca. The fluctuation of the NAV/Participation Unit is an indicator of the profit/loss of the Investor.
- OJK – Financial Services Authority (Otoritas Jasa Keuangan)
The Financial Services Authority (OJK) is a government institution that organizes an integrated regulatory and supervisory system over all activities in the financial sector.
- PARTICIPATION UNIT (UNIT PENYERTAAN)
A unit purchased by the Investor when investing in a KIK Mutual Fund. This Participation Unit reflects portion owned by the Investor of the entire Mutual Fund asset. The price of Participation Unit follows the NAV per Participation Unit, which is announced daily in the paper.
- PARTICIPATION UNIT APPLICANT PROFILE (FORMULIR PROFIL CALON PEMEGANG UNIT PENYERTAAN)
The Participation Unit Applicant Profile is a form that must be completed by a Participation Unit applicant as required by the Regulation of BAPEPAM No. IV.D.2 as an attachment to the Decision of the Chairman of BAPEPAM No. Kep-20/PM/2004 dated April 29, 2004 on the Profile of the Potential Mutual Fund Investor, containing data and information on the risk profile of the potential Mutual Fund Participation Unit holder before the first purchase of the Mutual Fund Participation Unit from the Investment Manager or a Mutual Fund Securities Selling Agent appointed by the Investment Manager.
- PARTICIPATION UNIT TRANSACTION CONFIRMATION LETTER (SURAT KONFIRMASI TRANSAKSI UNIT PENYERTAAN)
Participation Unit Transaction Confirmation Letter is a letter confirming the instruction to purchase and/or resell the Participation Unit and/or investment switching by the Participation Unit holder that shows the amount of Participation Unit owned by the Participation Unit Holder and serves as evidence of the ownership of a Mutual Fund Participation Unit. The Participation Unit Transaction Confirmation will be issued by the Custodian Bank and sent at the latest 7 (seven) Exchange Days as of:
- The completion and the proper receipt of the application for the Mutual Fund Participation Unit subscription from the Participation Unit Holder by the Investment Manager or the Mutual Fund Securities Selling Agent appointed by the Investment Manager and the receipt of payment by the Custodian Bank (in good fund and in complete application);
- The completion and the proper receipt of the application for the redemption of the Mutual Fund Participation Unit from the Participation Unit Holder (in complete application) by the Investment Manager or the Mutual Fund Securities Selling Agent appointed by the Investment Manager;
- The completion and the proper receipt of the application for the switching of the Mutual Fund Participation Unit from the Participation Unit Holder (in complete application) by the Investment Manager or the Mutual Fund Securities Selling Agent appointed by the Investment Manager.
- PORTOFOLIO (PORTFOLIO)
A group of financial securities owned by an Investor. An Investor usually chooses to invest in different financial securities (diversification) to split the risk and combine such securities. In Mutual Fund, an Investment Manager creates an investment portfolio based on the investment policy explained in the prospectus.
- PROSPECTUS (PROSPEKTUS)
Prospectus is every printed statement or written information for the purchase of a Mutual Fund Participation Unit by the investor in a Public Offering. Prospectus is a guideline providing important information, such as provisions, objectives, risks, and costs. The Prospectus must be understood by the Investor before deciding to purchase the Securities offered.
- PUBLIC OFFERING (PENAWARAN UMUM)
Public Offering is the offering of Mutual Fund Participation Unit by an Investment Manager to sell a Participation Unit to the public based on the procedure provided by the Capital Market Law and its implementing regulations as well as Collective Investment Contract.
- REDEMPTION FORM (FORMULIR PENJUALAN KEMBALI UNIT PENYERTAAN)
A Redemption Form is an original form used by the Participation Unit Holder to resell the Participation Unit held to be completed, signed and submitted by the Participation Unit Holder to the Investment Manager or a Mutual Fund Securities Selling Agent appointed by the Investment Manager.
- SALAM (SALAM)
In principle the same with istishna, but in general salam is designated for the purchase of agricultural goods.
- SBI (SBI)
A negotiable paper issued by Bank Indonesia. SBI may be assumed risk free as it is guaranteed by Bank Indonesia. SBI is also used by Bank Indonesia as an instrument to control the number of money in circulation. For example, an increase in SBI interest rate will result in the decrease of money in circulation and vice versa, a decrease in SBI interest rate will result in the increase of money in circulation.
- SECURITIES PORTFOLIO (PORTFOLIO EFEK)
Securities Portfolio is a group of Mutual Fund assets in the form of Securities.
- SECURITY (EFEK)
Securities is a negotiable paper. Pursuant to the Regulation of BAPEPAM & LK No. IV.B.1, the Attachment to the Decision of the Chairman of the BAPEPAM & LK No. KEP- 427/BL/2007 dated December 19, 2007 jo. Decision of the BAPEPAM & LK No. Kep-176/BL/2008 dated May 14, 2008 on the Guidelines of the Management of Mutual Fund in the Form of Collective Investment Contract, Mutual Fund in the form of Collective Investment Contract may only sell and purchase the following:
- Securities sold in a Public Offering and or traded in a Stock Exchange both local and offshore;
- Debt Securities such as commercial paper and Asset-Backed Securities rated by Securities rating company, Government Bonds, and or debt Securities issued by an international institution in which the Indonesian Government is a member;
- A domestic money market instrument that is due in less than 1 (one) year, including Bank Indonesia Certificate, Money Market Bond, Letter of Indebtedness, and Deposits Certificate, both in rupiah and in foreign currency; and or
- Domestic commercial paper that is due in under 3 (three) years and has been rated by a Securities rating company.
- SHARE (SAHAM)
Evidence of the ownership of a company that serves as a claim over the revenue and assets of the company.
- SHARIA PRINCIPLES IN THE CAPITAL MARKET (PRINSIP-PRINSIP SYARIAH DI PASAR MODAL)
Sharia Principles in the Capital Market are the principles of Islamic law on capital market activities based on the fatwa of the National Sharia Board of the Indonesian Ulema Council (DSN-MUI) as referred to in the Regulation of BAPEPAM & LK No. IX.A.13 as the Attachment to the Decision of the Chairman of BAPEPAM & LK No. KEP-130/BL/2006 dated November 23, 2006 on the Issuance of Sharia Securities (BAPEPAM & LK Regulation No. IX.A.13).
- SHARIA SECURITIES (EFEK SYARIAH)
Sharia Securities are Securities as referred to in the Capital Market Law and its implementing regulations of which contract as well as issuance procedure comply with the Sharia Principles in the Capital Market.
- SHARIA SECURITIES LIST (DAFTAR EFEK SYARIAH)
Sharia Securities List is a list of Securities that comply with Sharia Principles in the Capital Market, as stipulated by BAPEPAM & LK or other parties recognized by BAPEPAM & LK, as regulated in the Regulation of BAPEPAM & LK No. II.K.1 as an Attachment to the Decision of the Chairman of BAPEPAM & LK No. Kep-314/BL/2007 dated August 31, 2007 on the Criteria and Issuance of Sharia Securities List and the Decision of the Chairman of BAPEPAM & LK on the Sharia Securities List that has been and or will be issued, renewed and or amended from time to time.
- SHARIA SUPERVISORY BOARD (DPS) (DEWAN PENGAWAS SYARIAH)
Sharia Supervisory Board is a supervisory board responsible to monitor the activities of an Investment Manager in managing Sharia Mutual Fund to maintain compliance with Sharia Principles in the Capital Market. The placement of a Sharia Supervisory Board requires the approval of DSN-MUI.
- SUBSCRIPTION FORM (FORMULIR PEMESANAN PEMBELIAN UNIT PENYERTAAN)
Subscription Form is an original form used by a potential purchaser to purchase a Participation Unit completed, signed and submitted by a potential purchaser to the Investment Manager or through a Mutual Fund Securities Selling Agent appointed by the Investment Manager.
- SWITCHING FORM (FORMULIR PENGALIHAN INVESTASI)
Switching Form is an original form used by a Participation Unit Holder to transfer the investment held to another Mutual Fund managed by the Investment Manager, except for money market mutual fund and protected mutual fund, to be completed, signed and submitted by the Participation Unit Holder to the Investment Manager or a Mutual Fund Securities Selling Agent appointed by the Investment Manager.
- TAKAFUL (TAKAFUL)
- WADIAH (WADIAH)
Fund holding service where the fund owner may collect the fund at any time. Under the wadiah system, the bank is not responsible to but is allowed to give bonus to the customer. Giro and saving are categorized as wadiah.