Indonesia Country Report 2012

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Discovery Reports

Panin Asset Management stays on top of its home market

Discovery Reports

PUBLISHED : Friday, 02 November, 2012, 12:09pm
UPDATED : Thursday, 23 May, 2013, 4:05pm

Gaining international prominence through its stable of top-ranked funds, Panin Asset Management (Panin AM) understands the Indonesian investment landscape very well. It harnesses close to two decades of capital market expertise from its parent company, the Panin Group.

Spun off from Panin Sekuritas last year, Panin AM manages Indonesia's leading open-ended listed mutual funds, five of which have received the highest ratings from investment research firm Morningstar.

With assets under management of more than US$1 billion, Panin AM has emerged as the largest Indonesian local equity mutual fund manager as of July. Panin AM is ranked No3, next only to Schroder Investment Management Indonesia and BNP Paribas Investment Partners. In the balanced mutual fund segment, Panin AM has edged out BNP Paribas for the No2 slot.

"We've been in the market since 1997 - just two years after mutual funds began to be traded here," says Ridwan Soetedja, Panin AM director. "Our anchor fund, Panin Dana Maksima, has been ranked No4 globally among the top 25 performing open-ended equity funds over a 10-year period and No1 globally over a five-year period by Morningstar. We are very proud of this legacy."

Panin AM is distinguished by proprietary research that covers 85 per cent of the Indonesian capital market, allowing for rapid and efficient portfolio management. A dedicated team of analysts and portfolio managers ensures this solid performance.

"Our investment process has been built over many years, so the system works very well. Not many fund houses do their own research in Indonesia, and fewer still pay attention to the second-tier and third-tier companies. We do, and that's why our performance remains steady, even when blue chips are skidding," Soetedja says.

Besides catering to a large base of institutional clients, Panin AM is increasingly focusing on the financial planning needs of the middle class. It is developing its online platform to help retail clientele gain better access to the market.

This year's launch of four sharia funds also demonstrates the company's keen sense of its home market needs.

Known for its prudent asset management, Panin AM is gradually venturing overseas. It is exploring opportunities including the potential to gain a foothold in Singapore through partnerships. This will allow Panin AM to tap the market of Indonesian retirees. It has launched an English version of its website to cater to the increasing number of foreigners drawn to Indonesia's rapidly growing economy.

Panin Asset Management