Indonesia’s fund management industry assets ended 2020 with 573.54 trillion rupiah (US$40.81 billion) of assets, an increase of 5.79% from a year earlier, thanks to a strong run in stock and bond funds in the fourth quarter.
Stock funds jumped 24.32% to 127.79 trillion rupiah in October through December, a period during which the benchmark Jakarta Composite Index gained 22.77%.
Bond funds rose 16.47% to 139.15 trillion rupiah in the final quarter of the year.
The figures were published on the website of the Financial Services Authority of Indonesia. As usual, the regulator didn’t provide an analysis.
The stock and bond gains drove total assets in October through December up 12.43% from 510.15 trillion rupiah at the end of the third quarter.
According to a fund manager at an Indonesian fund management company, the asset growth was largely due to optimism that the government will be able to contain the coronavirus pandemic now that vaccines have begun to be rolled out.
“Indonesia is among the first countries in Southeast Asia to receive the vaccines, and investors are now expecting the country’s economy to get back on the growth path this year,” he tells Asia Asset Management, speaking on condition of anonymity.
Year-on-year, stock funds fell 8.17% in 2020 and bond funds rose 15.03%. The Jakarta Composite Index shed 5.09% last year.