KONTAN.CO.ID – JAKARTA. The persistent pressure on the rupiah’s exchange rate is significantly fueling investor interest in investment instruments denominated in US dollars. This shift highlights a strategic move by investors seeking stability and potential gains amidst currency fluctuations.
This burgeoning interest is clearly reflected in the remarkable growth of assets under management (AUM) for various US dollar mutual funds over the past year. Such a trend indicates a strong preference for dollar-backed assets as a hedge against the weakening local currency.
According to Infovesta data, the BNP Paribas Prima USD mutual fund, categorized under fixed income, recorded the highest AUM growth. This product saw its AUM surge by US$106.53 million, marking an impressive year-on-year (yoy) increase of 82.77%.
Following closely, the Manulife Liquid Fund USD, a money market category fund, expanded its AUM by US$96.53 million, experiencing an extraordinary jump of 372.15% yoy. Additionally, Danamas Dollar, another fixed income fund, grew by US$39.28 million, up 33.85% yoy, further underscoring the broad appeal of dollar-denominated assets.
Shifting focus to investment performance, US dollar mutual funds with the largest year-to-date (ytd) returns have been predominantly dominated by global Sharia equity-based products. This segment has shown remarkable resilience and growth, attracting investors keen on ethical and strong-performing assets.
Leading the pack, the Panin Global Sharia Equity Fund posted an impressive return of 37.17%. It was closely followed by Mandiri Asia Sharia Equity Dollar Class B with 35.13%, Mandiri Asia Sharia Equity Dollar Class A with 34.06%, Manulife Saham Syariah Asia Pasifik Dollar AS with 32.57%, and Principal Islamic Asia Pacific Equity Syariah USD at 31.96%. These figures showcase robust performance in the Sharia equity space.
Wawan Hendrayana, Vice President of Infovesta Utama, affirmed that investing in US dollar mutual funds remains an attractive option, particularly for investors with existing or future funding needs in the US dollar currency. He emphasizes the practical benefits for such individuals.
“It’s never too late to invest, but it must be meticulously tailored to the investor’s specific needs and individual risk profile,” Wawan stated to Kontan on Monday (May 11, 2026), stressing the importance of personalized investment strategies.
He further elaborated that the allure of US dollar mutual funds stems not only from their inherent investment product performance but also from the significant potential gains derived from the strengthening of the US dollar against the rupiah. This dual advantage makes them particularly compelling.
“Beyond the commendable performance, there’s also the potential for substantial exchange rate gains, given that the rupiah tends to continuously weaken against the US dollar,” he added, highlighting the currency appreciation as a key draw.
However, Wawan prudently reminded investors that market risks still warrant careful consideration, especially for equity-based and balanced mutual funds. These categories inherently carry higher volatility.
He also cautioned that even fixed-income mutual funds possess the potential to record negative performance when interest rates experience an upward trend, a crucial factor to weigh in current economic climates.
Nevertheless, Wawan believes that the long-term trend of the US dollar strengthening against the rupiah can serve as a powerful underpinning for overall investment performance. This enduring trend offers a foundational advantage.
“Our experience over the last 10 years demonstrates a consistent strengthening of the US dollar against the rupiah. This means that even potential losses from the investment itself could potentially be offset by favorable exchange rate gains,” Wawan explained, citing historical data to support his perspective.
Looking ahead, the prospects for US dollar mutual funds will continue to be influenced by the direction of US central bank interest rates, set by the Federal Reserve (The Fed), as well as ongoing trends in the rupiah’s movement. These macroeconomic factors are pivotal.
Despite these influencing factors, Wawan views this instrument as inherently attractive because it consistently offers higher returns in US dollars compared to traditional deposits. This competitive edge makes them a preferred choice for many.
“USD mutual funds remain appealing as they are capable of delivering US dollar returns that surpass those offered by deposits,” Wawan concluded, summarizing the core value proposition of these investment vehicles.
Summary
Investors are increasingly shifting toward US dollar-denominated mutual funds as a strategic hedge against the persistent depreciation of the Indonesian rupiah. This trend is evidenced by substantial growth in assets under management for funds like BNP Paribas Prima USD and Manulife Liquid Fund USD, while global Sharia equity products have demonstrated strong performance with significant year-to-date returns.
Market experts highlight that these funds offer a dual advantage by combining underlying investment performance with potential gains from currency appreciation. While factors such as Federal Reserve interest rate policies and market volatility require careful consideration, these instruments remain attractive for their ability to consistently outperform traditional dollar deposit rates.