In 2004, the Executives’ Meeting of East Asia and Pacific Central Banks (EMEAP) Group comprising 11 central banks and monetary authorities in the region launched Asian Bond Fund 2 (ABF2) with the goal of increasing investor participation in Asian Bonds through low-cost innovative Bond Index Funds. This program saw the introduction of a Pan Asian Bond Index Fund (PAIF) and eight single market funds that represent Asia’s new asset class. Bahana TCW Investment Management as a trusted and well-experienced company in the local finance sector was tasked with managing ABF Indonesia Bond Index Fund, and in December 2007 oversaw its successful listing as an Exchange Traded Fund (ETF) on the Indonesian Stock Exchange.

As a passively managed bond index fund denominated in Indonesian Rupiah, the ABF Indonesia Bond Index Fund is expected to track a pre-determined fixed income benchmark index consisting of local currency sovereign and quasi-sovereign bonds. Having weathered a difficult macro environment in 2013, the ETF appears set to strengthen in 2014, with total returns during the year reaching 4.25% as of 31st October.