Financial Expert CNBC Indonesia
Thursday, 25/05/2023 07:05 WIB
Photo: Pexels/Anna Nekrashevich
Jakarta, CNBC Indonesia – Unit link shares of Generali Equity Ultima had recorded a positive monthly performance in April 2023 of 3.89%. However, judging from October 2019 or when this link unit was first launched, its performance was minus 31.79%.
Based on information in the latest fund fact sheet (April 2023) Generali Equity Ultima, the performance of the unit link offered by PT Asuransi Jiwa Generali Indonesia cannot outperform the index on a year to date (YTD) basis.
The Composite Stock Price Index (IHSG) recorded a performance of 0.95%, the IDX30 Index at 2.63% and General Equity Ultima -1.15%.
The unit link with a total managed fund of IDR 847 billion as of April 2023 places 98.69% of its investment in stocks and the remainder (1.31%) in money market instruments.
With a total circulating unit of 1.24 billion, the unit price for Generali Equity Ultima as of April 2023 costs IDR 682, aka it has eroded 31.79% from the initial price when it was launched.
There are fried stocks in Generali Equity Ultima’s portfolio?
24.03% of the investment allocation in the portfolio is in property sector stocks, meanwhile 20.32% is in the financial sector, 15.68% in the infrastructure sector, 12.54% in the consumer cyclical sector, consumer non-cyclical in 8 .45%.
Next is the industrial sector at 7.65% and the remainder is the basic industrial sector, technology, transportation and logistics, and energy.
The series of issuers in the Generali Equity Ultima stock portfolio include PT Ace Hardware Tbk (ACES), PT Astra International Tbk (ASII), PT Bank Rakyat Indonesia (Persero) Tbk (BBRI), PT Indomobil Multi Jasa Tbk (IMJS ), PT Integra Indocabinet Tbk (WOOD), PT Jasa Marga Tbk (JSMR), PT Mayora Indah Tbk (MYOR), Semen Indonesia (Persero) Tbk (SMGR), PT Summarecon Agung Tbk (SMRA), Telekomunikasi Indonesia (Persero) Tbk (TLKM), and PT XL Axiata Tbk (EXCL).
Of all the issuers in the Generali Equity Ultima portfolio, only SMRA property stocks are included in the top 10 unit link holding holdings.
As known, as of March 31, 2023, it made a profit of Rp. 271.71 billion, or shot up 55% from the same period last year which amounted to Rp. 175.04 billion.
Even though the SMRA price has increased by 12% when calculated every three months until May 2023, the SMRA price has decreased by 7% if calculated from March 3 to April 3 2023.
Following news regarding improving economic indicators in Indonesia, Bank Indonesia (BI) is expected to continue holding its benchmark interest rate at 5.75% until the end of this year.
This will certainly be a positive catalyst for issuers in the property sector, and SMRA is no exception.
Apart from the property sector, the performance of issuers in the banking sector can actually boost the performance of Generali Equity Ultima’s portfolio, this is supported by the composition of shares in the financial sector which reached 20.32% and BBRI’s share ownership which recently reached an all time high.
However, one thing that must be anticipated is the decision of this unit linked investment manager to include WOOD shares in this unit linked portfolio.
As it is known that WOOD is one of the stocks included in the consumer cyclical sector. The portion of shares in the consumer cyclical sector in Ultima’s Generali Equity portfolio reached 12.54%.
The company’s share price with a market capitalization of around IDR 2 trillion has also been corrected by 42% YoY from 23 May 2023.
Last year, the business of this listed wood and furniture producer experienced a slowdown due to a decrease in demand for building component products in the United States market.
The price itself WOOD itself has high price volatility and a relatively small daily transaction value if calculated daily. For example, on March 14 2023, this stock experienced a sharp decline of around 6%, and finally rebounded in a short time.
MARI shares lost in top 10 as of March 2023
Since 2022, PT Mahaka Radio Integra Tbk (MARI) shares have been included in the top 10 of Generali Equity Ultima’s stock portfolio until February 2023.
The media issuer, which has a market capitalization of IDR 362.4 billion, posted a loss of IDR 99 billion in 2022. The amount of this loss was stated to have increased by 266% from the previous year which amounted to IDR 27 billion.
Until now, MARI has also not released its first quarter 2023 financial report. MARI’s price has also fallen 67.5% YoY from the initial IDR 200 per share to IDR 68 per share on 23 May 2023.
Talking about volatility and transaction values, MARI also has very high price fluctuations and small transaction values.
Even though it is missing from the top 10 stocks in the portfolio, data from PT Kustodian Sentral Efek Indonesia in May 2023 states that PT Asuransi Jiwa Generali Indonesia still holds 5% ownership of MARI shares in the AJ GENERALI INDONESIA securities account, PT-GENERALI EQUITY ULTIMA-912494037 as of May 2023 .
In April 2023, the unit link Generali Equity Ultima recorded a monthly positive performance of 3.89% in line with the strengthening of the JCI by 1.63% in the same period. They also made changes to their investment portfolio by adding shares in the financial sector.
The existence of BBRI shares can certainly help improve the performance of the Generali Equity Ultima unit link portfolio.
However, given the presence of WOOD shares and MARI’s large shareholding, it is likely that this will further increase the risk of investing in unit links.
Given the unit link investment is intended to overcome the increase cost of insurance and pay a premium, customers cannot have high expectations for the performance of this unit link.
Disclaimer: This article is a journalistic product in the form of views from CNBC Indonesia Research. Financial Expert does not aim to persuade readers to buy, hold, or sell related unit linked products. The decision is entirely up to the reader, so we are not responsible for any losses or profits that arise from that decision.
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