PT Eficorp mutual fund attracts Rp 42 billion

PT Eficorp mutual fund attracts Rp 42 billion

JAKARTA (JP): Investment manager PT Eficorp Security, a
Texmaco Group subsidiary, announced yesterday it had collected
about Rp 42 billion (US$17.39 million) from its two-month old
open-end mutual fund.

Eficorp's president, T. Bakthavatsalam, said yesterday the
company initially started with Rp 36 billion from sponsors when
the mutual fund named DUIT was launched on Jan. 2.

"In two months, we have raised about Rp 8 billion," he said,
adding that the fund aimed to reach Rp 1 trillion in four to five
years.

Bakthavatsalam said he was optimistic the mutual fund would
reach Rp 60 billion this week after yesterday's grand launch.

The company will invest about 50 percent of the DUIT fund
portfolio in money market instruments like commercial papers, 20
percent in bonds, and 30 percent in equities.

"With 70 percent of the mutual fund invested in fixed income,
we run a lower risk of losing the money," he said.

He said the DUIT fund could give annual growth of between 18
percent and 19 percent, slightly higher than the average 16
percent offered by bank deposits.

The interest gain is now about 18.5 percent, he said.

Furthermore, he said, since mutual fund managers are exempt
from the 15 percent income tax on income from interest from
deposits or bonds, investors would probably profit from DUIT
fund, he said.

Investors would also be attracted to the Duit fund because it
was an open-end fund which means they can enter and withdraw
their money at will, he said.

Unlike closed-end funds, open-end mutual funds are not listed
on the stock exchange.

The minimum initial investment is Rp 100,000. Investments
cannot exceed Rp 10 billion, or 1 percent of the total number of
shares.

"With the low minimum investment, we are sure that many
investors, especially small scale ones, would invest in the DUIT
mutual fund," he said.

The mutual fund will be offered in other major cities
including Surabaya, Medan, Semarang, Bandung, and Ujungpandang.

It will also be marketed overseas.

Eficorp has appointed Bank Dagang Nasional Indonesia as
custodian.

Eficorp Security, which is also a brokerage house and
underwriter, is a member of the Jakarta and Surabaya Stock
Exchanges with paid-up capital of Rp 50 billion.

Over 25 mutual funds have been set up since PT Danareksa Fund
Management launched Indonesia's first last year. (02)