JAKARTA - PT Ashmore Asset Management Indonesia Tbk (AMOR) recorded assets under management (AuM) of IDR 32.6 trillion in the first quarter of 2023, a 2.5% decrease from the first semester of 2022 of IDR 33.4 trillion. However, AuM grew 3.5% compared to the first quarter of 2023 of IDR 31.5 trillion.

Ronaldus Gandahusada, President Director of AMOR said that in the past year the asset management industry has faced significant challenges. "The impact on the decline in assets under management, especially mutual funds," he said in an information disclosure quoted on Friday (14/7).

According to him, the equity market was under pressure in the fourth quarter triggered by falling commodity prices, while stocks that were sensitive to interest rates had not posted as good performance as the bond market. The narrative that interest rates have peaked has been reflected in the Indonesian bond market, with yields dropping from 6.8% to 6.2% and greatly outperforming other emerging markets and the United States (US) sovereign bond market," he said.

Nonetheless, Ashmore's active management approach has delivered relatively strong performances with 64% and 98% of its AuM, excelling by one year and three years, respectively.

He conveyed that the impact of regulatory changes that encouraged rotation to Fund Management Contract (KPD) products caused a weakening in the development of the AuM industry. This was also reflected in Ashmore's 2.5% y/y decline in AuM, with the 12-month average AuM dropping 11.4% to IDR 32.3 trillion. However, in the first half of the year to June 2023, Ashmore outperformed the industry with +2.3% AuM growth compared to +1.6% for the industry. (LK/LM)