Fund management firms loss assets<\/p>\n
JAKARTA (JP): Many major fund management companies in
\nIndonesia suffered substantial reductions in assets under their
\nmanagement due to the financial crisis, a senior official at a
\nleading fund management company said.<\/p>\n
Rizka Baely, director of PT Citicorp Securities Indonesia,
\nsaid on Wednesday that there were massive withdrawals by mutual
\nfunds' institutional clients in the wake of the crisis.<\/p>\n
\"Institutional investors, especially banks, were pulling out
\nin the wake of the crisis,\" she said at a conference on the
\nglobal and regional economic outlook for 1999, organized by
\nCitibank Global Asset Management Indonesia.<\/p>\n
Most of the country's fledgling mutual funds are sponsored by
\nbanks.<\/p>\n
The country's banking industry was one of the hardest hit
\nsectors by the economic and currency crisis, causing huge non-
\nperforming loans, massive runs and a huge demand for fresh money
\nfor recapitalization.<\/p>\n
Rizka, however, said that despite the generally poor
\nperformance of the fund management industry, Citicorp Indonesia
\nmanaged to increase the assets under its management by Rp 163
\nbillion (US$21.8 million at the current exchange rate) to Rp 300
\nbillion in October.<\/p>\n
That made Citicorp Indonesia the seventh largest mutual fund
\ncompany in the country, up from 17th largest at the end of last
\nyear. Also, its CitiReksaDana fund became the fourth largest
\nfixed income mutual fund in the country.<\/p>\n
She said PT BNI Securities remained the largest fund manager
\nin the country, with assets under its management totaling Rp 940
\nbillion. But it suffered a considerable decline of around Rp 1
\ntrillion in the assets it managed.<\/p>\n
According to Rizka, other poor performers in the country's top
\n10 fund managers were those operated by PT Danareksa, losing Rp
\n687 billion in assets under its management; PT Bahana, which
\ndeclined Rp 81 billion; PT Schroder, down Rp 104 billion; PT
\nNikko Securities, losing Rp 164 billion; PT BDNI Securities, down
\nRp 28 billion; and PT Bakrie Securities, which declined by Rp 314
\nbillion.<\/p>\n
Major gainers were PT Intru Nusantara and PT Panin Securities,
\nshe added.<\/p>\n
Rizka said that all the data was collected from Bapepam, the
\ncountry's capital market watchdog.<\/p>\n
She said that the country offered huge potential for growth
\nfor the fund management industry, pointing out that the total
\nmarket size offered by pension funds, insurance companies and
\nsocial securities in 1998 was estimated at Rp 44.37 trillion.<\/p>\n
\"Only 11 percent has been tapped by the investment management
\nindustry via managed accounts and mutual funds,\" she said.<\/p>\n
Citicorp Securities Indonesia has managed institutional
\ninvestors' portfolios since 1994, and individual investors'
\nportfolios through their CitiReksaDana mutual fund since July
\n1997.<\/p>\n
Rizka said that the firm managed the accounts of 37
\ninstitutions, mostly pension funds of state and multinational
\ncompanies in the country.<\/p>\n
The firm is part of Citibank global asset management
\noperation, which, together with Salomon Brothers Asset Management
\nand Smith Barney Asset Management, merged into a huge SSBC Asset
\nManagement Group, with assets under its management reaching $296
\nbillion -- the world's 15th largest management group. (rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/fund-management-firms-loss-assets-1447893297",
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