Data from Infovesta as of July 2024 on a year-to-date (ytd) basis shows that fixed income unit link products delivered an average return of 0.83%.

One of the fixed income unit link products from PT BNI Life Insurance, or BNI Life, recorded a positive return as of July 2024, namely BNI Life Syariah Fixed Income Fund with a return of 2.89% and BLife Link Fixed Income Stable Plus with a return of 2.16%.

In response to these results, Acting President Director of BNI Life, Neny Asriany, stated that the allocation strategy implemented by the company helped maintain the positive performance of these products, despite a decline in the 10-year Government Bond yield, which caused bond prices to rise.

Neny explained that the allocation strategy applied to these products involved a combination of government bonds and corporate bonds.

"Thus, it can optimize returns while keeping the risk level in check," she said to Kontan on Monday (19/8).

Looking at the potential interest rate cut by The Fed in September 2024, Neny is increasingly optimistic that the fixed income unit link performance will record more positive results and increase significantly by the end of this year.

"This monetary policy move is expected to boost the bond market growth, which will ultimately have a positive impact on the returns of fixed income unit link products offered to customers," she said.

Neny also believes that this condition will provide greater opportunities for investors to achieve more optimal investment results over the long term.

To boost the performance of the fixed income unit link, Neny explained that BNI Life will take several steps. With the market volatility that is occurring, she said that the company must act quickly to rebalance the portfolio and respond to every market condition, as well as remain active in trading to take advantage of every momentum that occurs in the market.