Prudential expands asset management expertise to Indonesia
08 May 2012
News, Asia, Indonesia
Eastspring Investments, the asset management arm of Prudential Corporation Asia, has announced plans to enter the Indonesian market following the granting of an Asset Management Company (AMC) licence from Bapepam LK.
“Indonesia has shown impressive economic growth and stability during the past several years and we believe now is the right time for us to establish asset management operations in this fast growing market,” said Barry Stowe, chief executive, Prudential Corporation Asia, part of Prudential plc.
Prudential is one of the region’s largest insurers and operates the leading life insurance company in Indonesia, PT Prudential Life Assurance. Its Asia asset management business, Eastspring Investments, is Asia’s largest onshore mutual fund manager with total funds under management in excess of US$80 billion.
“Having operated and invested in Indonesia for more than ten years, Prudential has established a respected and powerful reputation. We will continue to build on this strong foundation with the establishment of our asset management business, Eastspring Investments,” Mr. Stowe added.
Prudential is one of the largest foreign investors in Indonesia, managing about US$5 billion in assets for both domestic and foreign investors.
Riki Frindos, who has been managing Indonesian investments for Prudential (Eastspring Investments) for more than ten years from its regional hub in Singapore, has been appointed chief executive officer of Eastspring Investments Indonesia. He has more than 15 years’ experience in the financial services sector.
Mr. Frindos heads a team of investment professionals led by Chief Investment Officer Ari Pitoyo, who also has more than 15 years’ investment experience.
Chief Executive of Eastspring Investments Graham Mason said the opening of the Indonesian office would draw on the world-class processes and standards of corporate governance which were the hallmark of Prudential.
“We look forward to working with the Indonesian authorities to help to grow the nation’s mutual funds industry,” Mr. Mason said. “The ability of Indonesians to build their wealth as they accumulate savings will be critical to the ongoing prosperity of the nation.”
He added: “It is important that Indonesians have access to world class investment expertise they can trust; as one of the largest fund managers in the region with the backing of the financial strength of Prudential, we believe we deliver on that promise.”
Mr. Mason continued: “With its youthful population, high levels of education and recent sovereign rating upgrades, this is an exciting time for Indonesia and we are pleased to be part of the ongoing growth story.”
Mr. Frindos said the business would initially focus on developing a robust distribution channel to enable Indonesian investors’ access to the investment expertise offered by Eastspring Investments. With the granting of the licence, the business will now also develop a range of products to meet the needs of Indonesian investors.
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