Eastspring Syariah Mixed Asset Fund

The Eastspring Syariah Mixed Asset Fund is expanding the scope of Indonesia-domiciled investment opportunities as this is among the first rupiah-denominated funds with a mandate to place up to 15% of its NAV in equities abroad.

“In terms of local regulations, the Islamic fund is more flexible. We can invest even the entire 100% of the fund assets offshore if priced in US dollars. For conventional funds, they are now limited to investing only 20% offshore,” explained Erik Susanto, head of multi asset at Eastspring Indonesia.

He said external investments can help offset the underperforming Indonesian stock market. “The return is really bad historically, including the forward projection for earnings. That's why for equities, we need to look offshore or at global funds because returns I think will be better.”

As it was just launched on the 20^th August 2025, foreign investments will be conducted only once the fund’s asset base is significant. In the meantime, Erik said the fund will focus on Sukuk. “If you look at the most popular funds recently in Indonesia, it's those which can deliver stable incomes.”

Sukuk will make up to 79% of the fund’s NAV, the maximum allowed under Indonesian regulations for each asset class, while the rest will be in cash or Shariah compliant deposits in the near-term.

Adopting a composite benchmark composition comprising 79% of the IBPS Sukuk Government Bond Index and 21% in one-month deposits rate, Erik said back-testing had shown the fund to historically deliver 6-8% return per annum.

The initial investment is a minimum of IDR100,000 (US$6.40) - offered solely via digital platform Bareksa Portal Investasi. Only the first 10 billion units, priced at IDR1,000 (US$0.064) is currently on offer to retail investors.

No date is set yet for the launch of the two other classes, also 10 billion units each, set aside for institutions and qualified clientele of the Eastspring group. The fund size is capped at 30 billion units, with variance allowed between allocations within each of the three classes.

Also, no dividends are planned for the retail investors class, with gains automatically reinvested. As cash distributions will incur transfer fees, “it will be costly for those who invest very small amounts,” Erik said.

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