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)