30 Apr 2020
The SRI-KEHATI BNP Paribas Index Mutual Fund carries the concept ‘Investment with an impact’ by providing retail investors to contribute to activities that have a beneficial influence on social and environmental aspects, as well as earning returns from potential returns on investment.
BNP Paribas Investment Partners (PT BNP Paribas IP), which is part of the investment management group BNP Paribas Asset Management, today launched the first mutual fund index with features that allow investors to contribute to environmental preservation and social activities.
This mutual fund “BNP Paribas SRI-KEHATI Index Mutual Fund (BNP Paribas SRI-KEHATI)” was introduced on 29 November 2018 with a Net Activation Value per Unit of Participation (NAV/unit) of Rp 1,000.
Vivian Secakusuma, President and CEO of PT BNP Paribas IP, said at the launch of this mutual fund: “We are delighted to be able to launch a mutual fund index with this feature for investors for the first time. We believe index mutual funds can be the first step for investors wanting to be invested in the stock market because investing in index funds is easy to monitor and very transparent.
“Index mutual funds themselves are mutual funds consisting of a series of shares or bonds, with potential returns on investment that derive from the underlying index that is the reference. Information on the components and index values used by the mutual fund will be available to retail investors through the Indonesia Stock Exchange (IDX) website.
The SRI-KEHATI Index was launched on June 8, 2009, by the Indonesian Biodiversity Foundation (KEHATI) in collaboration with the IDX. The SRI- index itself consists of 25 public company shares, which are selected every six months based on criteria set by the KEHATI Foundation.
The standards of company selection conducted by the KEHATI Foundation also apply the principles of Sustainable Responsible Investment (SRI), as well as the principles of environmental, social, and governance (environmental, social and good governance / ESG).
KEHATI Foundation currently has four programs focused on the preservation of food, energy, and water supplies, as well as the health sector with three pillar programs on agricultural ecosystems (agroecosystems), forests, and coastal and small islands.
“What distinguishes KEHATI from other environmental NGOs is that we also work with financial institutions to advance the conservation agenda,” said Riki Frindos, Executive Director, KEHATI Foundation. “Through the SRI-index, we can create mutualism between the conservation world and the business sector.
“Unlike conventional investments aimed solely at providing financial returns to investors, through this mutual fund, PT BNP Paribas IP strives to add value by opening up opportunities for investors to also contribute to society and the environment. A certain amount will be given to the KEHATI Foundation and then distributed in order to support their activities and programs which are focused on the agricultural ecosystem program.
The program focuses on educating local farmers on the proper use and method to be applied to their crops. We believe that solving the problem of hunger and also the issue of malnutrition will contribute to improving local farmers ‘ living conditions, and eventually, it has an impact on the entire Indonesian economy, “Vivian added.
Explaining more about the KEHATI program, Riki said, “The SRI-KEHATI BNP Paribas contribution will be used to fund programs that support the preservation and use of dry-climate-appropriate local food in eastern Indonesia (NTT), particularly on Flores Island. Currently, the program focuses on restoring neglected and underutilized local plants, one of which is sorghum.
KEHATI has collaborated with more 150 female farmers on Flores Island with an area of over 200 hectares (Ha) in carriying out this programe. The initiative began in 2012 and has continued to expand until now.
At Permata Bank, which was appointed first selling agent, SRI-KEHATI BNP Paribas can already be purchased. At the launch event, Djumariah Tenteram, the Director of Retail Banking at Permata Bank, said, “We are glad to be appointed by BNP Paribas IP as the first selling agent to market this index mutual fund.
The SRI-KEHATI BNP Paribas Index Mutual Fund is the first mutual fund to be sold through PermataBank with the theme ‘Investment that makes an impact.’ We believe the SRI-KEHATI BNP Paribas Index Mutual Fund will respond to the needs of our customers, particularly customers who are concerned about preserving the environment and social activities. This mutual fund can even be purchased directly through the Permata Mobile X program.