EASTSPRING INVESTMENTS INDONEsia
Corporate Profile
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The Asia Investment Expert The world trusts Eastspring Investments brand name reflects our commitment to remaining close to our roots in Asia as well as building on our specialist knowledge and considerable reach in the region. Join us on our exciting journey.
03 / WHAT’S INSIDE
what’s inside 04
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04 / Foreword 06 / Eastspring Investments Indonesia 08 / Global Presence 10 / Our Heritage 12 / Our Clients are at the Center of All That We Do 14 / Our Key Beliefs 16 / System and Infrastructure 18 / People Behind the Wheel 19 / Investment Team
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Our business is solely driven by our clients, by their future financial needs to achieve their personal hopes and dreams, as well as those of their loved ones.“
Puncak Jaya summit (Carstenz Pyramid) on Papua islan is the highest mountain peak in Indonesia. Eastspring Investments aspires to be the leading and respected asset management company in Indonesia.
05 / FOREWORD
foreword
Riki Frindos CAIA, FRM Chief Executive Officer
The strength and impressive resilience of Indonesia’s economy during the past several years has reconfirmed our commitment to better serving Indonesian market through Indonesian office establishment. Our on the ground presence is a testament of our confidence in the long-term prospects of Indonesia capital market, and the importance of the mutual fund industry to sustain economic growth.
Being part of Prudential plc (UK) and an asset management arm of Prudential Corporation Asia, Eastspring Investments is one of the largest investors in the Indonesian capital market benefiting from our exposure in Indonesia that has spanned over a decade and will continue to build on this strong foundation.
through a disciplined and well-established process that can respond best to client’s investment objectives. The same commitment to establishing standards of corporate governance and excellent client services which are the hallmark of Prudential around the globe.
Our business is solely driven by our client’s, by their future financial needs to achieve their personal goals and dreams, as well as those of their beloved ones. Therefore, we believe investment performance is a critical part of our success. Our global network and long history provides our investors with access point to world class investment expertise. Meanwhile, our deep-rooted local experience has brought in a high level of market knowledge and understanding in delivering performance on the assets entrusted by our investors. It is our firm commitment to ensuring our seasoned investment team manages clients’ assets
We offer this investment expertise in a wide range of products suited to our clients’ diverse needs, risk profiles and investment horizon. We believe that building up partnership with our Bank partners is the answer to deliver our product in most effective and efficient way. Nevertheless, we will continue to explore other means to expand our reach to clients across the country. We also look forward to working hand in hand with all stakeholders to better understand and meet financial needs of Indonesian investors and families. Together, we can grow the industry and contribute to the sustainable prosperity of the nation.
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eastspring investments indonesia The presence of Eastspring Investments in Indonesia dates back to over 10 years ago. Via its Singapore office, Eastspring Investments is one of the largest investors in the Indonesian capital market with more than Rp50 trillion* assets invested in Indonesia capital market. These assets are sourced from both foreign and domestic investors, including from Prudential Life Assurance, the largest insurance company in Indonesia. Both Eastspring Investments and Prudential Life Assurance Indonesia are part of Prudential Plc (UK). In March 2011, Eastspring Investments established an office in Jakarta, incorporated under the name of PT Prudential Assets Management Indonesia (PAMI). Following the launch of a new brand name, Eastspring Investments, as a single brand for Prudential Group’s asset management operations in Asia, PAMI subsequently changed its name to PT Eastpring Investments Indonesia. Our official business operation commenced in April 2012 following the issuance of MI Lincense by Bapepam-LK. For more than a year, we have heavily invested in building robust and reliable
process, system, and infrastructure in every function of our company. Now, we are proud to claim that we own one of the best systems and infrastructures in Indonesia’s asset management industry. We are also glad to have the best Indonesia’s talents joining our company. On average, each of our staff has 12 years of working experience and holds more than one individual license from Bapepam-LK. Additionally, our team members hold various internationally-recognized investment certifications such as CFA, CAIA, FRM, and CFP. Moreover, most of our key investment professionals possess more than 15 years of investment experience.
We are currently working with a number of leading banks in Indonesia to build strong partnerships in distribution, to enable us to deliver our investment expertise, products, and services to potential clients across the country. With the process, system, infrastructure, and people are all in place, we are ready to serve Indonesia’s investors. Eastspring Investments Indonesia is set to serve your investment needs.
*as per March 2012
07 / EASTSPRING INVESTMENTS INDONESIA
We are committed to constantly raising the bar.�
Sunda Kelapa Port, where Jakarta history began hundreds of years ago. Eastspring Investments presence in Indonesia dates back to over a decade ago.
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south korea china dubai
hong kong
taiwan
india vietnam malaysia singapore indonesia
japan
us (Denver)
09 / GLOBAL PRESENCE
globAL PRESENCE us (chicago)
Eastspring Investments is Prudential plc’s asset management business in Asia. Prudential plc (UK) is an international financial services group listed on stock exchanges in London, Hong Kong, Singapore and New York. The group serves more than 26 million customers and has US$550.5 billion asset under management (at 31 Dec 2011). The asset management business of Prudential plc also includes M&G, one of the biggest asset management companies in the UK/Europe, and PPM in America.
Eastspring Investments is one of Asia’s largest asset managers, with operations in 12 markets, approximately 2,000 employees in Asia and about US$85 billion in assets under management (at 31 March 2012). We manage funds on behalf of a wide range of retail and institutional investors, including life and pension products sold by Prudential in the UK and across Asia. We are the largest multinational onshore mutual fund manager in the region . We have a large group of Asia-based investment managers who manage funds across a broad range of asset classes including one of the largest Fixed Income portfolios in Asia, Asia equities (including global emerging market equities) and alternative assets including private equity, property and infrastructure. Our team also includes a specialist Global Asset Allocation team which manages portfolios worldwide from the perspective of the world’s fastest growing region. Eastspring Investments now operates in Japan, Malaysia, Singapore, South Korea, Taiwan, Hong Kong, the United Arab Emirates, Vietnam, India*, China*, Hong Kong, Indonesia, and the US.
Prudential plc, incorporated and with its principal place of business in England, and its affiliated companies constitute one of the world's leading financial services groups and has been in existence for over 160 years. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America. 2 Source: S. Korea (KOFIA), India (AMFI), Singapore/Malaysia (Lipper), Japan (ITA), Taiwan (SITCA), China (Wind). Competitors selected based on the largest multi-national players in the following 7 Asian markets: S. Korea, India, Singapore, Malaysia, Japan, Taiwan, China. 100% FUM accounted for all players, regardless of ownership stake. * Joint Venture Operations 1
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our heritage Being part of Prudential Plc (UK), we are one of the largest and most tenured asset managers in Asia. We have a long history of investment in the region, dating as far back as 1863. Our footprint spans over 11 markets in Asia, supported by hundreds of investment professionals. With scale comes strength – the strength to invest in people and infrastructures. We believe that is how we achieve success – supported by a solid foundation that is rooted in Asia.
11 / OUR HERITAGE
1848 Prudential plc was founded in Hatton Garden, London on May 30 this year and registered as “The Prudential Mutual Assurance Investment and Loan Association”
Prudential became a limited liability company
2000 2000 Prudential became the first U.K. life insurer to enter the Mainland China market through a joint venture with CITIC Group Joint venture with ICICI Bank for India’s life insurance market Entry into Taiwan’s fund management industry
1924
1931
1964
1994
1995
1996
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First overseas operation, established in Kolkata, India (formerly known as Calcutta)
Prudential Assurance launched in Malaysia
Prudential Assurance launched in Singapore
Prudential Assurance launched in Hong Kong
Prudential Corporation Asia, Regional Headquarters, established in Hong Kong
Life insurance operation launched in Indonesia and Thailand
Entry into the Philippines’ life insurance industry
Mutual fund business launched in India via a joint venture with ICICI Bank
Prudential becomes the first Europebased life insurer to enter Vietnam
2001
Fund management operation launched in Japan Joint venture with Bank of China International for Hong Kong’s mutual funds market and Mandatory Provident Fund scheme
2007
2002 Fund management operation launched in Singapore and Malaysia
<2000
1923
2002 Entry into Korea’s fund management industry
2004 Fund management operation launched in Vietnam
2005 Further expansion in Mainland China through a fund management joint venture with CITIC Group
2010 2006 Prudential Property Investment Management (PRUPIM) launched in Singapore Fund management operation launched in Dubai Entry into Malaysia’s Shariahcompliant Takaful industry via a joint venture with Bank Simpanan Nasional
2007 Consumer finance business launched in Vietnam Fund management operations extended into Hong Kong’s retail mutual funds market
2009 Prudential Al-Wara’ Asset Management launched in Malaysia
2012 2010 Prudential plc is listed on the Hong Kong Stock Exchange and the Singapore Exchange
2011 Prudential’s asset management business reveals new brand – Eastspring Investments
2012 Fund management operation launched in Indonesia, through the establishment of PT Eastspring Investments Indonesia
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Our Clients are at the center of all that we do Our clients are at the center of all that we do. We believe, only by sincerely listening to and understanding their dreams, we can meet their future financial needs. This is why we are committed to investing in and retaining the best investment professionals – only the best talents. The strength of our company is built on the strength of our people and their capability as well as sincerity to serve our clients Integrity stands as a fundamental value at Eastspring Investments which is deeply embraced by all of our staffs. Without integrity, we believe, it is impossible to work for our clients’ interest. Hence, we have zero tolerance on any conduct that would risk our clients trust. It is also our core belief at Eastspring Investments that we can only succeed if we can help our clients achieve their financial goals. By nurturing and growing our clients’ assets, we actually work toward the achievement of our own goal. One may call it partnership, but we simply share common goals with our clients, to help them achieve their dreams.
13 / OUR CLIENTS ARE AT THE CENTER OF ALL THAT WE DO
We can only succeed if we can help our clients achieve their financial goals.”
A farmer is nurturing its rice crop in Mekong Delta, Vietnam. As the biggest AMC in Vietnam, Eastspring Investments is taking care of US$1.2 billion clients’ assets. (as of March 31, 2012)
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our key beliefs We strongly believe that a valuation driven investment approach generates superior longterm returns. Security mispricing driven by investor ‘greed and fear’ is an enduring phenomenon. Investments are made at a significant discount to intrinsic value, which called an investor’s “margin of safety”. We build in an adequate margin of safety between the market price and the intrinsic value to protect against forecast error, event risk and extreme volatility. Eastspring Investments Indonesia seeks to appraise the worth of securities by appraising its “intrinsic value”. Our overriding belief is that the intrinsic value of any security is the present value of future cash flows accruing to us as the owner of the security. Successful and sustainable exploitation of security mispricing requires the disciplined application of our valuation driven approach. Our process seeks to eliminate the behavioral biases that lead to mispricing in the first instance.
15 / OUR KEY BELIEFS
We believe valuation driven investment generates superior long-term returns.â&#x20AC;?
Skillfully crafted terraced paddy field in Yuen Yang, China bears the philosophy of harmony between nature and human. Strong process and philosophy is the fundamental of successful Eastspring Investments JV operation in China, currently with AUM of US$993 million. (as of March 31, 2012)
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Eastspring Investments believes that investing in system and infrastructure is an essential investment that should bode well for our investment performance as well as our clients’ asset performance.“
The Akasyi Kaikyo Bridge, Japan is the longest suspension bridge in the world which connects Kobe city with Awaji island. As a leading AMC in Japan, Eastspring Investments has built strong system and infrastructure to take care of US$7.7 billion clients’ assets. (as of March 31, 2012)
17 / SYSTEM AND INFRASTRUCTURE
System and Infrastructure We are proud of our highly qualified and experienced team members. We also have a profound belief in our investment philosophy and have created a robust process to ensure that we are always attached to and disciplined with it. Nevertheless, it is equally important to us to build sophisticated and reliable system and infrastructure to support the whole process of our investment activities, from front office, middle office, to back office. A world class technology that places us ahead of the competition and, more importantly, to help us deliver our clientsâ&#x20AC;&#x2122; needs. We have built and run a range of systems that support every aspect of investment management within our company. This encompasses market and data access, research analysis and database, portfolio management, pre and post compliance, dealing and execution, portfolio analysis, settlement, book keeping, and performance measurement. We are also able to leverage state of the art systems at our regional office. While various systems are at play, Charles River Trading System (CRTS) is at the core of
them all. CRTS bring portfolio management, order management, compliance, as well as dealing and execution onto one integrated platform. PruSearch is another example. This research analysis and database platform is our proprietary system which allows us to benefit most from the excellent works of our strong research team, which truly stands as the starting point of our investment thinking process. On the other end of the process, performance measurement and attribution, Eastspring Investments has for years used cutting-edge performance system of Sylvan.
Of course, we continuously ensure that our investment and dealing teams have access to leading data, market, and news providers, such as Bloomberg. Eastspring Investments believes that investing in system and infrastructure is an essential investment. This investment should bode well for our investment performance, our clientsâ&#x20AC;&#x2122; asset performance.
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19 / PEOPLE BEHIND THE WHEEL
PEOPLE BEHIND THE WHEEL Our management team consists of well-versed professionals who are well respected in Indonesia capital market and mutual fund industry. They focus on driving the Company to deliver the best possible results to the clients, ensuring the implementation of compliant investment procedures, and empowering their people to work at full potentials aligned with the Companyâ&#x20AC;&#x2122;s vision and mission in an ethical and professional manner.
Riki Frindos CAIA, FRM Chief Executive Officer
D. Ari Pitojo, CFA Chief Investment Officer
Anita Abdulkadir CWM, CFP Chief Marketing Officer
Riki has more than 15-year experience in investment industry, including 6 years as Investment Director of Global Asset Allocation Team with Eastspring Investments Singapore.
Ari is one of the most experienced investment professionals in Indonesia with over 15-year career span in Indonesia capital market.
Anitaâ&#x20AC;&#x2122;s long-established career in Mutual Fund and Wealth Management industry started during early days when mutual funds were first introduced in Indonesia.
Prior to his Singapore assignment, he was Head of Investment Division at Prudential Indonesia. He had also worked with several asset management and securities companies in Jakarta. Riki holds a WMI, WPEE, and WPPE licenses, as well as some internationally-recognized certification including CAIA (Alternative Investments), FRM (Risk Management) and has passed CFA Level 1.
Prior to joining Eastspring Investments Indonesia, he was the Strategist and Head of Research at Mandiri Sekuritas. He had also worked at several asset management and securities companies, including Bahana TCW Investment Management where his last position was Investment Director. Ari is a WMI license holder who also a CFA and served as the Secretary of CFA Indonesia from 2003 to 2007.
Prior to joining Eastspring Investments Indonesia, Anita was Vice President of Wealth Management Division at DBS. She worked at some asset management/ securities and insurance companies, including Manulife Asset Management Indonesia in 20042008, where her last position was Director, Head of National Account Management Sales. She holds a number of investment and financial accreditations including CFP and CWM. She is also a holder of WPPE, WAPERD, and WMI.
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21 / INVESTMENT TEAM
investment team We believe in our people, and are proud to have the best investment professionals joining our team. Eastspring Investments is supported by a winning team of seasoned investment professionals who have on average more than 15 years experience in the Indonesian market place.
D. Ari Pitojo, CFA Chief Investment Officer
Riki Frindos CAIA, FRM CEO & Co CIO
Djumala Sutedja Head of Fixed Income
Rian Wisnu Murti Head of Research
Komang Shanti Head of Dealing
Djumala is one of the respected Fixed Income professionals in Indonesia Capital Market. He has established a strong career with multi-year exposures in investment industry. Prior to joining Eastspring Investments Indonesia, he was Head of Fixed Income at Manulife Asset Management Indonesia. Previously, he had worked with ABN Amro Asset Management as Head of Portfolio Management Team. Djumala is a licensed investment professional and holder of WMI (Wakil Manajer Investasi) license from Bapepam-LK.
Rian has a career with more than 15-year experience in investment-related areas. Prior to joining Eastspring Investments Indonesia, Rian was Senior Manager of Investment Services at Prudential Life Indonesia. His working experience in a number of securities companies has exposed him to engage in various positions such as Research, Dealing and Investment Banking. Rian is a holder of WMI (Wakil Manajer Investasi) license from Bapepam-LK.
Komang started her investment career more than 15 years ago as an investment consultant in a global consulting company. She worked for BNP Paribas Investment Partner for over 8 successful years where she held various positions, including fund management and product research. Her last position at BNP Paribas was Deputy Head of Fixed Income. Komang is a licensed investment professional and a holder of WMI (Wakil Manajer Investasi) license from Bapepam-LK.
Our business is solely driven by our clients, by their future financial needs to achieve their personal hopes and dreams, as well as those of their loved ones.
Disclaimer This document is prepared solely for information and may not be published, circulated, reproduced or distributed in whole or part to any other person without the prior written consent of Eastspring Investments. This document should not be construed as an offer or solicitation for the subscription, purchase or sale of any securities mentioned herein. Any opinion or estimate contained in this document is subject to change without notice. We have not given any consideration to and we have not made any investigation of the investment objectives, financial situation or particular needs of the recipient or any class of persons, and accordingly, Eastspring Investments expressly disclaims all liability for the use or interpretation by others of information contained in this document or for any loss arising whether directly or indirectly as a result of any person acting on any information, opinion or estimate contained in this document. The prediction, projection or forecasts on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance. Past performance is not necessarily indicative of future performance. The value and income from investments may fall as well as rise. Eastspring Investments is an ultimately wholly-owned subsidiary of Prudential plc of the United Kingdom. Eastspring Investments and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business in the United States of America.
PT. EastspringInvestments Indonesia Prudential Tower 16th Floor Jl. Jend. Sudirman Kav. 79 Jakarta 12910 T: (62 21) 2924 5555 F: (62 21) 2924 5566 www.eastspringinvestments.co.id