Comparison of Equity Fund Performance Managed by Domestic and Foreign Fund Managers in Indonesia during 2018 to 2020

ABSTRACT: This study will analyze and compare the performance of equity funds managed by domestic and foreign fund managers in Indonesia by terms of Treynor index, market timing and stock selection ability during 2018-2020. The population of this study is all equity funds registered with the Otoritas Jasa Keuangan (OJK)- the Financial Services Authority in Indonesia. SampleDetermination of the sample using the purposive sampling method and resulted in a sample of 20 equity funds managed by domestic fund managers and 7 equity funds managed by foreign fund managers during the 2018-2020 period. Furthermore, the data samples were analyzed using the Mann-Whitney U test.The results of the study show that from the perspective of the Treynor Index, the equity funds managed by domestic fund managers outperformed those managed by foreign fund managers from 2018 to 2020. The stock selection and timing capabilities of stock funds managed by foreign investment managers are superior to those of equity funds managed by domestic fund managers. The practical importance of the results of this research for investors is to provide empirical evidence showing that there are differences in the performance of equity funds managed by fund managers in Indonesia and abroad. Fund managers are expected to be able to evaluate the performance of equity fund portfolios and improve their ability to choose the right timing and actions.

Keywords: performance, equity fund, foreign and domestic, fund managers