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)