IM Keeps Focusing on State Bonds despite the Good Performance

Following the cut of the benchmark interest rate, many investment managers (IM) try to optimize underlying assets originated from fixed-income mutual funds. Hopefully, the mutual funds' product based on bonds will be as exciting as other investment products affected by the low benchmark interest rates. They mainly target the long tenor government bonds, while also aim at corporate bonds based on careful assessments of the issuer quality, financial performance, and ratings.

BNI Asset Management dan Panin Asset Management, for example, chose to arrange portfolios consisting of fixed-income mutual funds based on 10-year tenor government bonds. Meanwhile, Avrist Asset Management suggests the long tenor government bonds to its clients who want to have low credit risks but with the potential to get a capital gain. However, Avrist also assembles portfolios consisting of corporate bonds for investors who wish to get a monthly investment dividend with an eight percent net dividend yield.