As part of my ongoing series on ‘big funds you’ve never heard of,’ I’d like to draw your attention to a rather big fund that I’m guessing you’ve never heard of. Let’s get started ...
- The origins of this fund can be traced all the way back to a 1947 law on ‘workplace accidents’, but it was really 2002 that the fund’s assets began to rapidly grow.
- Today, it has roughly $15 billion in assets under management.
- This fund could be characterized as a ‘state owned insurance company’ or a ‘social security provider’.
Any idea? No? Onward...
- In the past five years, the growth in assets has been upwards of 20% per year.
- According to a recent news article, 41% of the fund’s assets are in bonds; 32% are in deposits; 20% are in stocks; 7% are in mutual funds; and the remainder was invested in the real sector.
- The fund has 28 million stakeholders of which 11.5 million are “active” and pay monthly contributions into the fund.
Got it? Still nothing? Carry on...
- The government has mandated that this fund become a single provider for the country’s occupational social security programs starting on July 1, 2015.
- The government that sponsors this fund is... Indonesia.
- And the fund in question is...
... last chance...
Jamsostek!
I chose this “BFYNHO” because it’s been popping up on my radar at an increasing rate; it seems to be quite active these days. In fact, I think Jamsostek is going to be a big investment player in the years to come, so it’s worth making a note of it.
Anyway, for some additional details on the fund, I leave you with a quote from the president director, Elvyn G. Masassya:
“First of all, Jamsostek will continue placing its funds in safe investments. We will purchase blue chip shares of healthy companies and bonds issued by the government and institutionally and financially credible banks. We will also make a direct investment in safe and profitable businesses. Secondly, we are preparing Jamsostek Incorporated with a number of business units to maximize the investment program. The business units will be established with local and foreign partners and will be both professionally managed and closely supervised. Several units, such as PT Nayaka and PT Bijak, have already begun operating and given annual profits to Jamsostek and workers.”
