Nikko Securities launches mutual fund

Nikko Securities launches mutual fund

JAKARTA (JP): PT Nikko Securities launched yesterday a new
open-end mutual fund -- the Nikko Inti Nusantara Mutual Fund --
into the domestic capital market.

Harianto Solichin, a director of Nikko, said the company
expected to generate around Rp 1 trillion (US$423 million) from
the fund within three years.

"Currently we have secured a total of Rp 370 billion or 37
percent of the total capitalization from our sponsors," he said,
adding the sponsors included Bank Central Asia, Bank Bali, Bank
Ciputra, PT Indolife Pensiontama, PT Asuransi Kesehatan Indonesia
and PT Asuransi Jiwa Central Asia Raya.

He said beside these sponsors, a number of institutional
investors had also committed to pay Rp 100 billion, sold to
investors at a nominal value of Rp 1,000 per unit.

"Our target will be to invest 87.5 percent of the fund in
fixed income instruments and 12.5 percent in equities. But the
fixed income instruments could be reduced to 80 percent,
depending on the market," he said.

The securities firm's Associate Director, Adler Haymans
Manurung, said that his company would also sell the mutual fund
abroad. "But first our target is to sell at home," he said.

With the establishment of the Nikko Inti Nusantara Mutual
Fund, there are now 25 mutual funds in Indonesia with a current
total capitalization of Rp 2.3 trillion.

Nikko Securities Indonesia is owned by Nikko Securities of
Japan, Salim Group, Ciputra Group, Bank Dagang Negara Pension
Fund and PT Astek Pension Fund. (bnt)