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)