CBA launches mutual funds for RI

CBA launches mutual funds for RI

JAKARTA: The First State Investment Group, the fund management
arm of the Commonwealth Bank of Australia (CBA), officially
started operating here on Wednesday.

Executive head of CBA International Financial Services Gary
Mackrell said that CBA was highly interested in the Indonesian
domestic market and was confident that the new company, PT First
State Investment Indonesia, would receive a good welcome.

"We have intellectuals from around the globe and Indonesian
experts working in the company as our capital. There is also a
growing mutual funds market here and we want to be a part of it,"
he said.

According to the Capital Market Supervisory Agency (Bapepam),
at least 154 mutual funds are on offer in the country, worth
about Rp 69.5 trillion (US$8.17 billion) in total.

The company, which will serve both retail and institutional
clients, aims to secure an 8 percent to 10 percent share of the
market within three to five years of operation.

The management plans to offer five products -- fixed income,
balanced, equity, money market, and US dollar -- under its First
State Indonesian Bond Fund and First State Indonesian Balanced
Fund.

The company is the third Indonesian subsidiary of CBA, joining
two existing subsidiaries, PT Astra CMG Life Insurance and PT
Bank Commonwealth Indonesia. -- JP