Investing in Blue Chip stocks with real-time access

 

JAKARTA, March 6th, 2023 – PT Mandiri Manajemen Investasi (“Mandiri Investasi”) has launched the Mandiri ETF LQ45, a mutual fund that invests in blue chip stocks included in the LQ45 Index. The Mandiri ETF LQ45 is expected to provide optimal long-term returns to investors.

The Mandiri ETF LQ45 has two unique features. Firstly, it is structured as an Exchange Traded Fund, which means its units are traded on the Indonesia Stock Exchange, allowing investors to buy and sell them like regular stocks through securities companies. Secondly, the Mandiri ETF LQ45 is managed to track the performance of the LQ45 index, which comprises 45 blue chip stocks that have good liquidity and fundamentals and reflect the majority of the Indonesian stock market.

The Mandiri ETF LQ45 has several advantages over other mutual funds. Its main advantage is that it invests in companies that drive the Indonesian economy, as the LQ45 index represents the largest and most liquid 45 companies in Indonesia, acting as a proxy for economic growth. With a total market capitalization of approximately 56.68% of the Indonesia Stock Exchange, LQ45 stocks can be an efficient way for investors to gain exposure to the Indonesian economy.

According to the CEO of Mandiri Investasi, Aliyahdin Saugi (Adi), “We chose the LQ45 index because it has a liquid underlying, making it a popular choice for investors seeking to benefit from national economic growth. Additionally, LQ45 covers nearly 60% of the market capitalization of the Indonesia Stock Exchange, providing a general picture of the development of Indonesian stocks.”

Another advantage is the transparent investment with competitive fees. The Mandiri ETF LQ45 has a competitive management fee and transparent information disclosure. The LQ45 index generally undergoes four reviews and rebalancing annually, including two major reviews in January and July, and two minor reviews in April and October, which are only conducted in significant situations. Information about the LQ45 index and the Mandiri ETF LQ45 can be accessed by the public through the Indonesia Stock Exchange website at www.idx.co.id.

Historically, from January 2012 to January 2023, the performance of LQ45 has a positive correlation with the Consumer Confidence Index (IKK). Therefore, stocks in the LQ45 index can be used as a proxy for the Indonesian economy.

With the advantages of the LQ45 ETF, which is liquid and flexible, transparent, and has competitive fees, Adi is optimistic that this new investment product will be well received by domestic and foreign investors.

With the launch of the Mandiri ETF LQ45, investors can easily transact through securities companies using two purchase methods, namely through the primary and/or secondary markets. The primary market is where securities are traded for the first time before being listed on the Indonesia Stock Exchange. In the primary market, Mandiri Sekuritas acts as a participating dealer, working with Mandiri Investasi to transact the sale and purchase of units. Trading in the primary market can be done with a minimum purchase of one basket (1,000 lots or 100,000 units). The secondary market is where listed securities are traded. Securities companies act as intermediaries in trading securities in this market. Investors can buy and sell Mandiri ETF LQ45 units through securities companies. Trading in the secondary market can be done with a lower minimum purchase of one lot (100 units), and transaction prices are determined by securities companies in real-time following market prices at the time of the transaction.

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