Smart Beta Ekutias

1. JUNE 2018
1 month
Launch Date 15/12/2017
AUM (Rp Bn) 449
Number of Stocks 19-27
Beta 1.04
Investment Manager HP Asset Management
Custodian Bank Bank Rakyat Indonesia
Subscription Account 0329-01-003858-30-7
Subscription Fee ≤3%
Redemption Fee ≤5%
9.28%
YTD
906
Fund Objectives & Strategy
To achieve a long term capital growth by employing a systematic
and versatile investment methodology based on multi-factor ap-
proach. The fund primarily invests in Indonesia’s most liquid
stocks and dynamically adapts to changing market environment
by adjusting factor exposures and equity allocation.
 Monthly Periodic Rebalancing
 Dynamic Tactical Equity Allocation
 Efficient Portfolio Management Strategy
Fund Update
 JCI continued to extend losses in June, down -3.1% MoM and stretched lower 8.8% YTD
but relatively still flat -0.5% yoy. Almost all sectors experienced negative monthly
performance in June led by banking, property, and plantation stocks while infra stocks
was the only sector that managed to print positive return of 2.8% MoM. JCI has been in
negative monthly return since February 2018, in line with rupiah depreciation. In June,
rupiah weakened 3.1% MoM/5.6% YTD against USD to Rp14,330/USD, the lowest level
since September 2015. Recent rupiah depreciation is more due to external factor than
domestic factor.
 Trump protectionism has led global fund to risk-off EM (emerging market) assets and
prefer dollar/yen as safe haven. Foreign outflow from Indo equity market was recorded
at Rp9.3 tln in June while from Indo bond market was Rp4.4 tln. Cumulatively since
beginning of the year, foreign investors made Rp49.9 tln outflow in Indo equity and
Rp13.0 tln in Indo bond market. Indo 10 year bond yield spiked up by 74 bps to 7.8%.
Foreign ownership in Indo bond market declined to 37.8% in June compared to 39.5%
the same period year ago. To regain foreign investor’s confidence in equity and bond
market via stability of rupiah, Bank Indonesia has tuned up policy rate by another 50
bps in June after 50 bps hike done in May, bringing 7DRR (7 day reverse repo rate) at
5.25%. Bank Indonesia has been proactive in stabilizing rupiah through spot market and
government bond market. To bolster growth amid tightening cycle, Bank Indonesia has
relaxed LTV policy and pre-order credit mechanism in the property sector.
 Oil price breaching above USD70/bbl in June, up 10.6% MoM while coal increased 3.9%
MoM to USD114/ton. Of all Indonesia’s main commodity export, only palm oil price
which is labor intensive that still posted sluggish performance, -6.0% YTD/-11.5% YoY
compared to nickel that went up 21.6% YTD/60.7% YoY and coal 13.5% YTD/41.2%
YoY.
 Meanwhile, June inflation was only 0.6% on monthly basis and 3.1% on annual basis
which marked the lowest inflation rate for the past four years after Ied-ul-Fitr holiday
which was usually rising up on average at 0.8% MoM. Overall inflation remained under
control within BI target range of 3.5%±1%.
12 month
Sector Allocation (%)
NAV Growth
HPAM SMART BETA EKUITAS
NAV
4.62% -
Investment Policy
Equity ≥80%
Cash & Cash Eq ≤20%
Money Market ≤20%
Portfolio Composite
Equity 88%
Cash & Cash Eq 12%
Money Market 0%
Risk Ranking Moderate to High
Fund Performance
Tactical Allocation
NEUTRAL OVERWEIGHT
Fund Rating : -

2. Important Risk: The fund is actively managed and its characteristics w ill vary. Holdings show n should not be deemed as a recommendation
to buy or sell securities. Fund of funds is subject to the risk associated with the underlying HPAM funds in which its invests. Stock and bond value fluctuate
in price so the value of your investment can go down depending on the market conditions. Fixed income risks include interest-rate and credit risk. Typically,
when interest rates rise, there is a corresponding decline in bond values. Credit risk refer to the possibility that the bond issuer will not be able to make
principal and interest payments. Asset allocation strategies do not assure profit and do not protect against loss. Non-diversification of investment means
that more assets are potentially invested in fewer securities than if investments were diversified.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges and expenses. This and other information are available
through request for prospectus or at our company’s website. The fund is subject to market risks (volatility) and may not be appropriate for short term
investments. Holdings and Sector weightings are subject to constant changes without notice as deemed fit by the investment management team. This
document is for sophisticated investor only and not intended for individual private investor. Performance data quoted represent past performance and is no
guarantee of future results. Investment returns and principal values may fluctuate so that an investor’s shares, when redeemed, may be worth more or less
than their original cost. Current performance may be lower or higher than that shown. All return assume reinvestment of all dividend and capital gain distri-
butions. Index performance is shown for illustrative purpose only. Conventional Non-bank institutions are prohibited from investing directly in index.
Disclaimer
Value @ Risk Matrix
Intrinsic Assessment Table
PT. Henan Putihrai Asset Management
Penthouse @ Tamara, Jendral Sudirman 24
Jakarta 12920, Indonesia
(021) 2525775
www.HPAM.co.id