Mutual Funds Are Still an Investment Choice of the Life Insurance Industry
Funds managed by the investment of the life insurance industry are projected to continue growth this year. Mutual fund assets are still the player's choice to place their investment assets.
Industrially, OJK recorded a life insurance investment management fund as of November 2020 recorded at Rp 498.85 trillion. This is still growing 6.4% year-on-year.
Mutual fund assets are still the flagship for the company in placing its investment assets that dominate 32.37% with a value of Rp 161.48 trillion. Followed by stock assets worth Rp 141.93 trillion with a contribution of 28.45%.
Mutual Funds Are Still The Flagship For Companies In Placing Their Investment Assets
Executive Director of the Indonesian Life Insurance Association, Togar Pasaribu also said that the proportion of investment asset placements will not change much. According to him, investment placements in mutual funds tend to be stable overall although there is little change if based on the type of mutual fund.
"For example, fixed income mutual funds are expected to be affected by tax equality for all investors, while mutual funds with investment strategies abroad are still waiting for the finalization of the SE OJK PAYDI rules whose discourse will prohibit investment abroad," Togar said last weekend.
Togar also saw the investment assets of the life insurance industry can still continue to grow this year due to the easing of restrictions related to the Covid-19 pandemic. Unfortunately, he did not specify his growth projections. "We hope and oprimis can be better than the previous period," Togar said.
In terms of players such as BNI Life, mutual fund assets are also still the flagship to place their investment assets. BNI Life's investment assets in mutual funds are about 56% of total assets and are mostly fixed income mutual funds.
Not without reason, BNI Life Finance Director Eben Eser Nainggolan said that placement in fixed income mutual funds because the income obtained is relatively more stable than the stock market but still provides better benefits than placements in the money market.
Eben explained that it is currently monitoring market volatility and its portfolio. Given, the existence of a new variant of Omicron plus the normalization of monetary policy carried out by the Central Bank of the United States.
"This year we are targeting investment assets to rise by 9.6% from Rp 20.6 trillion to Rp 22.6 trillion," Eben said.
BRI Life places more investments in fixed income assets such as bonds with a portion of 70%. Meanwhile, their total investment assets as of December 2021 reached Rp 14.19 trillion or grew 23% yoy.
BRI Life President Director Iwan Pasila said that in managing his investment assets always based on the company's investment policy. Although, always look at the market conditions that occur.
"This investment policy is also monitored together with the Board of Commissioners and the Sharia Supervisory Board to ensure BRI Life can pay claims in the future and can pay claims in due course," Iwan concluded.