What Happens to a Mutual Fund If the Investment Manager Goes Bankrupt or the Fund Is Dissolved?

If an investment manager goes bankrupt, the mutual fund's assets are not the investment manager's own assets: the fund's money and securities are stored by the fund's custodian bank, a bank selected by the investment manager and approved by OJK, which holds them on investors' behalf, separately from the investment manager's company. On Pluang, each fund's assets are held by a licensed custodian bank supervised by OJK, and PT Kustodian Sentral Efek Indonesia (KSEI) acts as the transaction guarantor. If a fund is dissolved (pembubaran), for a reason set out in OJK regulations and the fund's prospectus, the fund's assets are sold and the proceeds are distributed to unit holders in proportion to the units they own. What you receive depends on the market value of the fund's assets when they are sold, so it can be less than what you invested, and LPS does not guarantee mutual funds. If a fund you hold on Pluang is being dissolved, contact Pluang Care for the status of your holding.

If the investment manager goes bankrupt

• The investment manager decides how the fund's money is invested, but it does not keep the fund's assets itself.
• The fund's money and securities are stored on investors' behalf by the custodian bank, separately from the investment manager's company.
• On Pluang, each fund's assets are held by a licensed custodian bank supervised by OJK, and KSEI acts as the transaction guarantor.

If a fund is dissolved

• The reasons a fund can be dissolved are set out in OJK regulations and in the fund's prospectus, for example when OJK orders it, when the fund's managed assets fall below the regulatory minimum, or when the investment manager and custodian bank agree to dissolve it.
• The fund's assets are sold (liquidated).
• The proceeds are distributed to unit holders in proportion to the units they own.
• The amount depends on the market value of the assets at the time of sale and can be less than what you invested.

Where to check and who to contact

• A fund's details: Open the fund's asset page in the Pluang app, scroll to the bottom and tap "Prospectus" to read its Prospectus and Fund Fact Sheet.
• A fund you hold is being dissolved: Contact Pluang Care through in-app live chat, by email at tanya@pluang.com, or by phone at (021) 8063 0065, Monday to Friday, 09:00–18:00 WIB.

Related questions:

Q: Is my mutual fund lost if the investment manager goes bankrupt?
The fund's assets do not become the investment manager's assets, because they are held on investors' behalf by a separate custodian bank. The custodian bank is selected by the investment manager and approved by OJK, and it stores the fund's money and securities on investors' behalf. It also does administrative work, such as ensuring that asset prices reported to investors use fair value. The investment manager decides how the money is invested but does not hold the assets itself. A fund's prospectus usually lists both parties.

Q: Can a mutual fund itself go bankrupt?
A mutual fund does not go bankrupt the way a company does, because it is a collective investment vehicle whose assets belong to its unit holders and are held by the custodian bank. The risks are that its value falls, for example when an instrument it holds defaults, or that the fund is dissolved and its assets are liquidated. In either case, what you receive can be less than what you invested, and LPS does not guarantee mutual funds.

Q: What happens if a bond my mutual fund holds defaults?
A default (gagal bayar) by a company whose bonds the fund holds lowers the value of those bonds, which lowers the fund's NAB per unit and the value of your units. This is investment risk, not a failure of the investment manager or custodian bank, and it is not covered by LPS. Each fund's prospectus describes its main risks, and its Fund Fact Sheet shows how its money is spread across instruments.

Q: Will I get my money back if a fund is dissolved?
You receive your share of the proceeds from selling the fund's assets, in proportion to the units you own, but not necessarily the amount you invested. The proceeds depend on the market value of the assets when they are sold, and neither LPS nor Pluang guarantees a mutual fund's value. If a fund you hold on Pluang is being dissolved, contact Pluang Care to check the status of your holding.