Through the eTalk Series webinar with the theme Market Outlook 2021: A New Hope to Sustainability and Recovery, Bank DBS Indonesia offered insight on the trend of sustainable investment this year. The event invited speakers Lilis Setiadi, President Director of PT Batavia Prosperindo Aset Manajemen, Henry Shen, Director of Blackrock, and Boy Suhendry, Market Intelligence of PT Bank DBS Indonesia.
Several insights gained from the eTalk Series include:
The launch of the Covid-19 vaccination is the key to global economic recovery in 2021.
There won’t be significant economic recovery in the near future due to the government's restrictive and preventive measures.
Starting from mid-2021, with a more widely available vaccine, the economic activity is expected to move faster towards a positive direction.
Governments in various countries are preparing stimulus for economic recovery during the Covid-19 pandemic, aimed at maintaining economic stability, household welfare, and helping companies survive during the Covid-19 pandemic.
For the Indonesian economy, there are several indicators that support economic recovery in 2021. Among them, inflation will be at a manageable level, interest rates will remain low in the 3.50-3.75% range, and the Rupiah exchange rate against The US Dollar is predicted to be stable. Company income is projected to increase, and foreign funds will return to the domestic capital market.
Amidst the ongoing pandemic and existing risks, Sustainable Investing is a global trend that has been taking place in recent years. Funds that have been switched to investment products with sustainable themes continue to grow, where their performance has proven to be optimal, even more resilient in turbulent or crisis conditions.
In the management of Sustainable Investment, the most important guidelines used in the capital market in the analysis and management process are Environmental, Social, Governance (ESG). Some examples of ESG guidelines elaboration:
Environmental: Renewable energy, energy management, water management, waste management
Social: Human resource management, customer relations, community engagement
Governance: Independent and effective corporate management, business ethics, audit management and risk management
The rise of ESG theme is supported by several things:
Globally, there is a push for structural change in investment management.
The Sustainability parameters influence risks and returns.
The portfolio resilience during periods of market volatility.
Better ESG data and analytics lead to more informed investment decisions.
Accelerating investor preference for sustainable assets.
Bank DBS Indonesia distribute Mutual Funds from PT. Batavia Prosperindo Aset Manajemen with the theme of Sustainable Investment, namely Batavia Global ESG Sharia Equity USD. This product focuses investment on ESG, managed with the support of the latest technology and resources from BlackRock as a Technical Advisor.
The product can be an investment choice for customers to diversify their portfolios to face the new investment climate amid the global trend of sustainable investing.
Face today’s financial challenges confidently
with the comprehensive range of investment products by Bank DBS Indonesia. Find out more about the Batavia Global ESG Sharia Equity USD offshore Mutual Fund investment opportunity here or contact your Relationship Manager.