The level of assets in Indonesia’s funds industry suffered a 3% drop in the first quarter of 2024 as investors moved their holdings from equity funds to fixed income.
As of the end of the March, there were US$30.49 billion of assets, a 2.94% decline on the $31.4 billion in assets at the end of 2023, according to figures posted by the Financial Services Authority of Indonesia.
Equity funds were the big losers, dropping by 5.37% quarter-on-quarter.
In contrast, bond funds rose by 1%.
One possible explanation for the results is that investors have redeemed their equity fund holdings because the Jakarta Composite index hit an all-time high of 7,396 on March 4.
And many are now moving their capital into bond funds, a trend that could continue if the economic plans of the president-elect Prabowo Subianto prove to be popular with investors.
©2024 funds global asia