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