Bapepam & LK
The government body responsible for fostering, organizing, and monitoring the daily activities of Indonesian capital markets. Bapepam & LK issues and enforces regulations and strict control over operations of Indonesian mutual funds.
A standard used in evaluating the performance of a mutual fund. A common benchmark for equity funds is the Jakarta Composite Index (JCI).
An institution that is unaffiliated with asset management companies whose role includes:
- Safekeeping and holding of securities on behalf of investors of a mutual fund
- Settlement of any transactions and deliveries of securities and dividends
- Registration and listing of securities
- Reporting on dividend payments, interests or other instruments due for payment
- Reporting and calculation of net asset value
A person responsible for carrying out investment decisions as defined in a fund’s prospectus. In order to become a fund manager, a candidate has to apply to Bapepam & LK for a license.
Net Asset Value (NAV)
The unit value of a mutual fund based on underlying assets minus liabilities, divided by units outstanding. It is calculated at the end of each business day for equity funds, fixed income/bond funds, balanced funds, and money market funds.
Represents the rate of return on an investment. For bonds, the simplest calculation of yield uses the following formula: yield = coupon amount/price. Technically, the price of a bond and its yield are inversely related.