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ReportFund Focus: Syariah Syailendra OVO Bareksa Tunai Likuid Fund

Fund Focus: Syariah Syailendra OVO Bareksa Tunai Likuid Fund

OVO has collaborated with Syailendra Capital, which manages more than IDR25 trillion (US$1.73 billion) in assets under management, and Bareksa to introduce a new fund to its users. JEVITHA MUTHUSAMY has more.

Digital payment platform OVO has partnered with Syailendra Capital and Bareksa to launch the Syariah Syailendra OVO Bareksa Tunai Likuid Fund, dubbed as the first Islamic money market mutual fund in Indonesia to be disbursed instantly through electronic money transactions via the OVO app.

“With the presence of Syariah Syailendra OVO Bareksa Tunai Likuid Fund in the OVO application, we want to provide more diverse choices for OVO users in investing. Not only that, this product underscores our commitment to open access that is affordable, reliable and convenient in managing investment,” Hadibrata Mantik, the head of OVO I Invest, said.

Launched on the 14th June 2021, the fund aims to achieve stable annual returns through an actively managed portfolio of fixed income and money market instruments. A minimum of 70–100% of the fund’s net asset value (NAV) will be invested in Sukuk while a minimum of 0–30% of the fund’s NAV will be invested in Islamic money market instruments.

The fund also marks Syailendra Capital’s effort in introducing money market mutual fund products amid growing interest in mutual fund investments in Indonesia. Syailendra Capital is optimistic that the fund will offer higher returns than deposits and is targeting between 3% and 6% in yield per year.
According to data from the Indonesian Central Securities Depository, the growth in the number of new mutual fund investors reached 1.65 million investors as of the 15th June 2021.

The Indonesian Islamic mutual fund industry has continued to record positive growth in recent years. Based on the data from the Financial Services Authority or Otoritas Jasa Keuangan, total Islamic mutual funds reached IDR77.5 trillion (US$5.36 billion) in April 2021. This figure has more than doubled compared with the end of 2018 which only recorded IDR34.5 trillion (US$2.39 billion).

OVO users may start investing in the fund with an initial amount of IDR10,000 (69.41 US cents). The mobile application includes a quick disbursement feature, which allows investors to cash out their investments into an OVO Cash balance, making it convenient to use for electronic money transaction payments.

The opinions and viewpoints expressed in the Fund Focus do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.

Table 1: Fund fact sheet
Name of the fundSyariah Syailendra OVO Bareksa Tunai Likuid Fund
Launch date14th June 2021
Fund managerSyailendra Capital
Fund categoryMutual fund (Shariah compliant)
Fund domicileIndonesia
Targeted sizeN/A
Investment objectiveThe fund has a fixed income strategy, aiming to achieve stable annual returns through an actively managed portfolio of fixed income and money market instruments.
Asset allocationA minimum of 70–100% of the fund’s net asset value (NAV) will be invested in Sukuk while a minimum of 0–30% of the fund’s NAV will be invested in Islamic money market instruments.
Geographical exposureIndonesia
Targeted yield3–6%
Investor typeLong-term investors
Base currencyIndonesian rupiah
Risk levelN/A
BenchmarkN/A

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