Melbourne-based AFM Investment Partners has announced it will be partnering with Mandiri Investasi, the largest indigenous Indonesian fund manager.
AFM will help Mandiri Investasi target Australia’s institutional investors that are looking for exposure to the Indonesian stock market and money market, according to AFM managing director John Donovan.
“Australian super funds and institutions are increasingly interested in investing in Asia, and Indonesia – being our neighbour and a major market full of opportunities – is a sensible place to invest,” Donovan said.
Mandiri Investasi is eager to expand its reach outside Indonesia, with the investment manager planning to have 20 per cent of its assets under management originating from outside of Indonesia within the next five years, according to a spokesperson. The Indonesian manager has already made forays into the Singapore and Hong Kong markets.
Donovan said that AFM had been the responsible entity of various Australian domiciled funds over the years, and he was eager to use those links to expand Mandiri Investasi’s presence in the Australian institutional market.
“At the moment Australians tend to invest overseas against the MSCI World Index. They’ll be looking for other opportunities, other sources of alpha in the long term,” Donovan said. “Over time Australian investors will be looking to invest in the region more and more.”
Donovan added that Mandiri Investasi chief investment officer Priyo Santoso would be addressing the Australian Centre for Financial Studies in a keynote address in September.
