Mandiri partners with Swiss-based Julius Baer Advisors

Nani Afrida ,  The Jakarta Post ,  Jakarta   |  Thu, 11/05/2009 11:53 AM  |  Business

One of the country's biggest fund managers, PT Mandiri Manajemen Investasi, has signed a partnership with Swiss-based firm Julius Baer Advisors in a bid to expand its customer base.

Mandiri president director Abipriyadi Riyanto said Baer would assist Mandiri to boost its capacity and know-how in attracting foreign investment.

"Global investors are only accustomed to four countries -China, India, Russia and Brazil-- to invest. Indonesia remains obscure for them," Abipriyadi said.

Abipriyadi said Baer has a good reputation as well as great access to global investors, particularly those in Europe.

Julius Baer Advisors is a subsidiary of Julius Baer, a financial firm with services in asset management, wealth management, investment consultation and investment funds for both private and institutional investors and securities, as well as foreign exchange trading. Julius Baer Advisors opened its branch in Indonesia Nov. 4, 2008.

Attracting investors from abroad is a necessity, Abipriyadi said, following a tough competition in the domestic mutual fund market. "We need to be more creative," he said.

Abipriyadi said that the company was planning to issue two more protected mutual fund products by the end of this year which would be expected to increase growth of its total managed funds by up to 30 percent.

Mandiri currently offers 55 mutual fund products-- 44 products in protected mutual funds, while the rest are in conventional mutual funds. The company is a subsidiary of the country's biggest bank by assets, Bank Mandiri.

As of the end of October, Mandiri manages Rp 13.5 trillion (US$1.42 billion) worth of funds, higher than the Rp 9 trillion originally expected for the end of this year.

"The managed funds received 60 percent of protected mutual fund contributions, while mixed mutual funds and currency market contributed 20 percent respectively," Abipriyadi said.

In 2008 the company attracted Rp 7.45 trillion in managed funds, more than double from the Rp 3.06 trillion attracted by the end of 2007.

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