08 September 2025
In August, the bond market saw a continued bullish sentiment from the previous months. 10Y govies yield closed at 6.388, down from 6.578 at the beginning of the month. Yield went as low as 6.312 in the same month, but jumped back up following the protests in the last week of August. Risk premium as measured by INDON CDS 5Y mirrored SUN 10Y yield movement, showing overall decline from 74.622 at the beginning of August and closing at 67.316 by the end of the month. Similarly, CDS went as low as 66.00, but slightly rebounded following the protests after Affan Kurniawan’s tragic incident. In our opinion, given the stabilising political situation following the closing weekend, the market should be in a position to further lower risks, alongside with yield.
We are also expecting further liquidity improvement in the coming months. Govies maturing in September amounted to a total of IDR77tn, followed by another IDR107tn in October. The improving liquidity points to another positive sentiment in the market, making fixed income funds a prudent alternative to those seeking less volatile investment products.
Product Recommendation
| FIXED INCOME FUND | |
|---|---|
| MIDU | MIDU invests in Bond Instruments with a Medium-Term segment and is categorized as low to medium risk. Investors bear the risk associated with the Bond Portfolio. |
| IDAMAN | IDAMAN invests in Indonesian Government USD Bonds with a short duration and is categorized as medium risk. Investors bear the risk associated with the Bond Portfolio. |
| MIDO2 | MIDO2 invests in Indonesian Government Rupiah Bonds with a long duration and is categorized as high risk. Investors bear the risk associated with the Bond Portfolio. |
| BALANCED FUND | |
| MIA | MIA invests in Equities, Bonds and Money Market with Medium Term and categorized Medium Risk. Investors bear the risk associated with the equity portfolio. |
| MISB | MISB invests in Sharia Equities, Sukuk and Money Market Sharia with Medium Term and categorized Medium Risk. Investors bear the risk associated with the equity portfolio. |
For More Information
Contact Mandiri Investasi – (021) 526 3505
Mandiri Investasi Email – [email protected]
Mandiri Investasi Website – www.mandiri-investasi.co.id
DISCLAIMER
The opinions expressed in the article are for general informational purposes only and are not intended to provide specific advice or recommendations for individuals or specific mutual fund or investment products. It is intended solely to provide education about the financial industry. Views reflected in the content may change at any time without notice. All performance data and investment returns mentioned in this article cannot be used as a basis for calculation to buy or sell a mutual fund. This data is performance records based on historical data and is not a guarantee of future mutual fund performance. Investment through mutual funds carries risks. Investors are required to read and understand the prospectus before deciding to invest through mutual funds.
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