Batavia India Sharia Equity USD fund

Launched on the 17^th July 2024, the Batavia India Sharia Equity USD mutual fund offers up to five billion participation units that were initially priced at US$1 each. The minimum initial subscription is set at US$10,000.

Subsequent investments are allowed in multiples of US$100 or 100 units, with purchases into this actively-managed fund dependent on the daily valuation set by the Indonesian fund manager Batavia Prosperindo Aset Manajemen (BPAM).

The purchase agreement is based on the Wakalah principle with the mandate given to the fund manager to make investments – who is also the representative (Wakiliin) with the custodian bank – to act for the interests of unitholders (Muwakkil).

The appointed fund custodian is Bank HSBC Indonesia – formerly Bank Ekonomi Raharja, which has been operating in Indonesia since 1989 – and among the resale agents signed up so far include Bank Central Asia.

This fund provides “exposure to the Indian economy, which has demonstrated relatively high and consistent growth – particularly in the technology, consumption and manufacturing sectors, all of which are thriving in India,” said BPAM President Director Lilis Setiadi.

The fund is aimed at unitholders seeking to achieve long-term capital growth by investing a significant portion of its total assets in a portfolio of Indian company stocks.

Investments in the Indian market are based on advice from Invesco Hong Kong, with a minimum 51% of the fund’s net asset value (NAV) in those Shariah compliant securities. The rest can be invested in Bank Indonesia Shariah certificates or Indonesia’s sovereign issued and/or guaranteed Shariah securities.

Within the overall portfolio, the fund manager will invest at least 80% of NAV in Shariah compliant equities and up to 20% in Shariah money market instruments and/or deposits. Individual company stock purchases are capped at 5% of the issued capital or 20% of fund’s NAV.

Distribution is via the issue of new units and the fund will be terminated after three months if the NAV stays below IDR10 billion (US$645.13 million) for 120 consecutive trading days.

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