CSI launches new open-end mutual funds

CSI launches new open-end mutual funds

JAKARTA (JP): PT Citicorp Securities Indonesia (CSI), a
Citibank N.A. subsidiary, launched yesterday a new open-end
mutual fund, Citireksadana Rupiah.

Citibank's vice president of global consumer banking, Omar S.
Anwar, said the company expected to raise about Rp 1 trillion
(US$384.61 million) from the fund in four years.

"We expect to reach the target by the year 2000," he said.

CSI has secured total funds worth Rp 84 billion from its
sponsors, he said.

He said the sponsors included Bank Central Asia (Rp 25
billion), Bank Niaga (Rp 20 billion), Bank Umum Nasional (Rp 15
billion), Bank Bumi Daya (Rp 5 billion), Indorama Synthetics (Rp
5 billion), PT Sorini (Rp 5 billion), PT Aneka Kimia Raya (Rp 5
billion), PT Hero Supermarket (Rp 2 billion) and Perum
Pengembangan Keuangan Koperasi (Rp 2 billion).

Omar said about 80 percent of Citireksadana Rupiah's funds
were invested in fixed income instruments and about 20 percent in
money market instruments.

"But the range of investment in fixed income is 80 to 100
percent," he said.

Omar said the initial minimum investment was Rp 500,000 with a
further additional minimum investment of Rp 250,000.

"We expect 75 percent of investors in Citireksadana will be
retail investors," he said.

He said that during the promotion period up to August 31 this
year, investors with an investment of over Rp 1 billion would be
exempted from a front-end (entry) fee. Investment between Rp 500
million to Rp 1 billion will be charged a 0.25 percent entry fee,
Rp 250 million to Rp 500 million a 0.50 percent fee, Rp 100
million to Rp 250 million a 0.75 percent fee, and Rp 500,000 to
Rp 100 million a one percent entry fee.

Omar hinted that CSI would launch two more mutual funds this
year.

"We have not come up with a name yet because we are
researching it right now," he said.

"Total units and funds to be raised will not be as much as
Citireksadana Rupiah," he said.

With the presence of Citireksadana Rupiah on the market, there
are now 65 mutual funds with total funds managed worth Rp 6.6
trillion.

Head of mutual funds supervision at the Capital Market
Supervisory Agency Gus Asmarajaya has said that about 70 mutual
funds were expected to come on stream by the end of this year to
raise total funds to Rp 7 trillion.

Citicorp Securities Indonesia, established in 1989, is 85
percent owned by Citibank Overseas Investment Corporation and 15
percent by Amir Batubara. (aly)