PT Trimegah Asset Management (Trimegah AM) officially launched the Trimegah Syariah ETF Emas, a gold-based Exchange Traded Fund (ETF) with the trading code XTRA on the Indonesia Stock Exchange (IDX) (10/08).

The ETF is a Collective Investment Contract (KIK) mutual fund whose units are traded on the stock exchange, giving investors a new way to gain exposure to gold price movements through the capital market.

The launch introduces a new investment instrument to Indonesia’s capital market and expands investment options for investors seeking exposure to gold through a transparent and efficient market mechanism.

Trimegah Launches XTRA Gold ETF on the IDX

XTRA is a gold-based ETF managed according to Sharia principles. Trimegah AM said the launch reflects its commitment to providing innovative investment solutions and expanding investment instrument choices in Indonesia’s capital market.

Through XTRA, investors can gain exposure to gold price movements through an instrument traded on the IDX.

Transactions can be conducted through securities companies during stock market trading hours.

“Capital markets continue to develop in line with the increasingly diverse needs of investors. We believe innovation must be able to provide access to investment that is more inclusive, efficient, and relevant to market dynamics. Through XTRA, we want to provide a new way for people to invest in gold assets through instruments traded on the Indonesia Stock Exchange, without reducing the convenience, transparency, or governance that characterize capital market investments,” said Antony Dirga, President Director of PT Trimegah Asset Management.

How XTRA Provides Access to Gold Investment

Gold has been widely used by investors as part of portfolio diversification strategies. Through XTRA, investing in gold does not require direct ownership of physical gold.

Investors can gain exposure to gold price movements through an instrument traded on the IDX. Transactions can be carried out through securities companies during stock market trading hours.

XTRA is also managed according to Sharia principles, providing a gold-based investment alternative for investors who prioritize compliance with Sharia principles.

The ETF mechanism provides price transparency and transaction flexibility through the capital market.

XTRA Gold ETF Fully Backed by Gold

Each XTRA ETF unit is fully backed by gold. The gold assets underlying the product are provided in the form of Electronic Gold Receipt (EGR), while the physical gold underlying the EGR is also stored.

PT Pegadaian Persero acts as the Bullion Bank, supporting the provision of gold assets in the form of EGR as the underlying of the product and storing the physical gold underlying the issued EGR.

The structure is part of an ecosystem that connects the capital market with real gold assets through an integrated mechanism.

Institutions Supporting the XTRA Gold ETF Ecosystem

The launch of XTRA is the result of collaboration between Trimegah AM and several institutions in Indonesia’s capital market ecosystem.

PT Trimegah Sekuritas Indonesia Tbk and PT Mirae Asset Sekuritas Indonesia serve as Participating Dealers that provide liquidity for ETF units.

PT Bank HSBC Indonesia acts as the custodian, holding the underlying securities that represent investor assets and independently overseeing the management of the funds.

PT Pegadaian Persero serves as the Bullion Bank, supporting the provision of gold assets in the form of EGR and storing the physical gold underlying the issued EGR.

Trimegah AM said the collaboration among these institutions is an important foundation for developing the gold ETF ecosystem in Indonesia and connecting the capital market with real assets.

Key Features of Trimegah XTRA Gold ETF

XTRA offers several features for retail and institutional investors, including:

• An accessible alternative for gold investment.
• Exposure to gold price movements as part of portfolio diversification.
• ETF units that are fully backed by gold.
• Trading on the IDX like shares during stock market trading hours.
• Transactions through securities companies without the need to store physical gold.
• Price and investment portfolio transparency.
• Management based on Sharia principles.

The launch of XTRA adds to Trimegah AM’s investment solutions, which include Money Market Mutual Funds, Fixed Income Mutual Funds, Mixed Mutual Funds, Equity Mutual Funds, Exchange Traded Funds (ETF), and Fund Management Contracts (KPD).

PT Trimegah Asset Management is a local investment management company and a subsidiary of PT Trimegah Sekuritas Indonesia Tbk. Trimegah AM has held an Investment Manager license since January 31, 2011, and manages more than 70 mutual fund products across different asset classes, as well as Fund Management Contracts.

PHOTO: FREEPIK

This article was created with AI assistance.

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