State-owned micro financing firm Permodalan Nasional Madani Investment Management (PNM IM) has officially listed an exchange-traded fund (ETF) on the Indonesia Stock Exchange (IDX) to give investors more investment options.

PNM president director Bambang Siswaji said the company’s first ETF, which was listed on the IDX on Monday, had attracted investment of about Rp 6 billion (US$428,570) from institutional investors, mostly insurance companies.  He expected total investment to reach Rp 200 billion within a year.

“We want to give institutional and individual investors a new platform to diversify their portfolios,” he said after the listing.

ETF is a collection of securities — such as stocks — that track an underlying index. Eight ETFs are listed on the IDX at present.

Bambang said the company’s ETF would follow the performance of the LQ45 index.

He said overall, up until September, the firm had booked Rp 12.1 trillion in assets under management, almost double the Rp 6.6 trillion recorded in the same period last year. (eyc)