What Do a Mutual Fund Custodian Bank and Investment Manager Do, and Who Holds My Money?
In a mutual fund, the investment manager decides how the fund's money is invested, while the custodian bank stores that money and the fund's securities on investors' behalf, so your invested money is held by the fund's custodian bank, not by the investment manager and not by Pluang. The investment manager manages the fund's portfolio for a group of investors, choosing instruments such as stocks, bonds or deposits in line with the fund's objectives. The custodian bank is selected by the investment manager and approved by OJK. It stores the fund's money and securities, carries out administrative work such as ensuring that asset prices reported to investors use fair value, records the proceeds when investors sell, and distributes dividends on the payment date. On Pluang, PT Sarana Santosa Sejati distributes the funds as an OJK-licensed Agen Penjual Efek Reksa Dana (APERD), 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. What you own is participation units in the fund.
| Party | What it does | On Pluang |
|---|---|---|
| Investment Manager | Manages the fund's portfolio and decides what it invests in, in line with the fund's objectives. Verifies sell orders, and decides whether the fund pays a dividend and how much. | Each fund has its own Investment Manager, named in the fund's Prospectus and Fund Fact Sheet. |
| Custodian bank | Stores the fund's money and securities on investors' behalf, and does administrative work such as ensuring asset prices reported to investors use fair value. Records sale proceeds and distributes dividends on the payment date. | Each fund has its own custodian bank, a licensed bank supervised by OJK. |
| Selling agent (APERD) | Distributes mutual funds to investors. | PT Sarana Santosa Sejati, an OJK-licensed Agen Penjual Efek Reksa Dana (APERD). |
| Transaction guarantor | Guarantees mutual fund transactions. | PT Kustodian Sentral Efek Indonesia (KSEI). |
| Regulator | Supervises mutual funds and approves the custodian bank. | OJK (Otoritas Jasa Keuangan). |
| You, the investor | Own participation units in the fund, priced at the NAB per unit. | Sale proceeds go only to the bank account in your own name registered as your mutual fund bank. |
Where your money goes
- When you buy: Your payment becomes part of the fund's assets, which the custodian bank stores. Your units are added after the transaction is completed, on the next exchange trading day.
- When you sell: The investment manager sells the fund's assets and recaps the day's sales, the custodian bank records the proceeds, and the money is transferred to your registered mutual fund bank account within a maximum of 7 business days, under OJK regulation 23/POJK.04/2016 Article 24.
- Interbank transfer fee: If your bank account is at a different bank from the fund's custodian bank, your bank may charge an interbank transfer fee, estimated at Rp2,500 to Rp30,000 per transaction on a sale.
Related questions:
Q: What does an investment manager do in a mutual fund?
The investment manager manages the fund's portfolio for a group of investors: it chooses instruments such as stocks, bonds or deposits in line with the fund's objectives, verifies sell orders, and decides whether the fund pays a dividend and how much. It does not store the fund's money and securities, which is the custodian bank's job. Each mutual fund on Pluang has its own investment manager, named in the fund's Prospectus and Fund Fact Sheet.
Q: How do I find out which investment manager and custodian bank run a fund?
Open the fund's asset page in the Pluang app, scroll to the bottom and tap "Prospectus". The prospectus sets out the parties involved in the fund, including the investment manager that manages it and the custodian bank that stores its assets on investors' behalf. The Fund Fact Sheet, in the same section, gives a shorter overview that includes the investment manager.
Q: Why does the mutual fund custodian bank matter when I sell?
Because the custodian bank records the proceeds of your sale before they can be transferred to you, which is part of why disbursement can take up to 7 business days. It also affects what you receive: if your mutual fund bank account is at a different bank from the bank that holds the fund, your bank deducts an interbank transfer fee, estimated at Rp2,500 to Rp30,000 per transaction.
Q: Who decides whether a mutual fund pays a dividend?
The fund's investment manager decides whether to distribute a dividend and how much, based on the fund's performance and policies. Pluang does not set it. On the payment date, the custodian bank distributes the dividend, and on Pluang the additional units appear in your holding no later than one day after the payment date (H+1). Dividends are never guaranteed, and a past dividend is no promise of a future one.
Q: What is Pluang's role in my mutual fund investment?
PT Sarana Santosa Sejati distributes mutual funds on Pluang as an OJK-licensed Agen Penjual Efek Reksa Dana (APERD), so you can buy and sell funds in the Pluang app. It does not manage the funds, which is the investment manager's job, and it does not hold the funds' assets, which the custodian bank stores. Mutual funds are bought and sold in the Pluang app only, following the guides "Langkah-langkah pembelian Reksa Dana di Pluang" and "Cara Menjual Reksa Dana".