Danamon Collaborates with Eastspring to Launch the Eastspring IDX ESG Leaders Plus Mutual Fund, A Smart Investment Choice for a Sustainable Future

Press Release / 06 September 2022

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Jakarta, 6 September 2022 – PT Bank Danamon Indonesia Tbk ("Danamon"), in collaboration with PT Eastspring Investment Indonesia ("Eastspring Indonesia"), launched the Eastspring IDX ESG Leaders Plus Index Mutual Fund as a smart investment choice that emphasizes on the principles of sustainability.

This investment product benchmarks on the IDX ESG Leaders Plus, as an index measuring the performance of stocks with high Environment, Social and Governance (ESG) ratings.

ESG rating and controversy analysis in index arrangement is developed by Sustainalytics, a leading independent ESG and corporate governance research, ratings and analysis firm that supports global investors through the development and implementation of responsible investment strategies.

Wealth Management Head, PT Bank Danamon Indonesia Tbk, Yulius Ardi says that this product is created for investors who needs mutual funds that take into consideration sustainability and high long-term growth potential.

“Danamon is pleased to partner with Eastspring to present the innovative Eastspring IDX ESG Leaders Plus mutual fund product as a smart investment choice that follows the principles of sustainability. The product understands and fulfills the need of investors interested in ESG Investing, who consider both financial metrics and ESG factors that contribute positively to environmental and social sustainability in the future,” added Julius.

Chief Executive Officer, Eastspring Investments Indonesia, Alan J. Tangkas Darmawan further says, “The Eastspring IDX ESG Leaders Plus Mutual Fund is the first mutual fund (non-Exchange Traded Fund) that uses Indonesia’s IDX ESG Leaders index. By implementing ESG practices, Eastspring Indonesia provides solutions for investors to invest and be part of implementing sustainable investment in the Indonesian Capital Market. This is in line with the commitment of Mutual Fund industry players, supported by the Financial Services Authority, to continuously expand the diversity of Index-based investment products.”

Investment in Eastspring IDX ESG Leaders Plus offers significant advantages for investors, because investments based on ESG principles will ensure that the invested company’s shares will have good long-term fundamentals. Companies that receive good ESG ratings signify exemplary Good Corporate Governance practices, smooth operations and the absence of significant controversies involving employees, surrounding community and regulators. Moreover, companies that emphasize ESG principles in their operations are usually well-established, with good financial performance.

Investment Instruments with ESG Principles Are Increasingly Becoming More Attractive to Investors

Investors have been increasingly considering the ESG factors in sustainable and responsible investments which are expected to grow significantly over the next decade. According to data from the Global Sustainable Investment Alliance, worldwide ESG investment instruments grew to USD 46 trillion in 2021 from USD 39 trillion in the previous year. Estimates reveal that by 2024, funds under management of ESG investment instruments will exceed conventional investment instrument funds.

Moreover, investment products based on ESG Investing principles are considered more secure, since a company's financial performance has a high correlation with its ESG risks. A company's operational sustainability cannot be smoothly maintained if it is mired in problems related to its employees, communities around its operations, as well as government-imposed sanctions concerning the impact of company operations on the environment and society.

It's Time to Take Control of Your Finances with Smart Investments through the Eastspring IDX ESG Leaders Plus

As an index mutual fund, the Eastspring IDX ESG Leaders Plus Mutual Fund places 80% - 100% investment in equity investment instruments (stock market) and a maximum of 20% in money market instruments/deposits. This Mutual Fund benefits those who want ESG-based instruments in their investments. Furthermore, this mutual fund has a share allocation feature beyond the IDX ESG Leaders Plus option which includes overseas investments with a maximum allocation of 15%. The overseas investment will be invested in stocks with significant business operations in the Asia Pacific region and have ESG Sustainalytics risk rating of below 40.

The Eastspring IDX ESG Leaders Plus Mutual Fund suits investors who have an aggressive risk profile. This product has various benefits, including the potential to generate attractive medium and long-term returns and portfolio management by a team with proven industry expertise in Indonesian mutual funds. It also offers convenience in investment diversification, which includes obtaining information on investment value through daily Net Asset Value (NAV)/unit on each trading day, as well as disbursement of investment, both in part and the entire value.

In addition, Eastspring IDX ESG Leaders Plus also allows transfer of participation units to other mutual funds that have investment transfer features managed by Eastspring Investments Indonesia.

In considering the investment criteria of carbon emission impact, water usage, work safety, wages and corporate ethics, the Eastspring IDX ESG Leader Plus product, which is based on the ESG Investing principle, is expected to provide long-term financial growth and contribute positively to the sustainability of the environment and society.

The launch of the Eastspring IDX ESG Leader Plus product, along with various smart investment products as part of the collaboration between Danamon and Eastspring Indonesia, testifies to the Bank’s commitment in offering a wide selection of investment products that suit customer conditions and requirements.

“Danamon is committed to continue expanding partnerships with companies of excellent reputation and track record for a more comprehensive selection of wealth management products that meet customer needs. This is part of our continuous efforts to provide financial solutions that enable customers to take control of their financial needs and goals,” concluded Yulius.

Learn more about the Eastspring IDX ESG Leader Plus mutual fund at www.eastspring.co.id or bdi.co.id/reksadana.

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