PT First State Investments Indonesia launches balanced mutual fund ...

PT First State Investments Indonesia launches balanced mutualfund First State Indonesian USD Balanced Plus FundPress releaseJakarta, 8 August 2012On 8 August 2012 PT First State Investments Indonesia (FSI Indonesia) has launched balanced mutual fund FirstState Indonesian USD Balanced Plus Fund (FSI USD Balanced Plus Fund). The fund obtained effective letter fromBapepam-LK on 28 May 2012 and has been offered to public starting 8 August 2012 at NAV of USD 1.00/unit. Thefund charges subscription fee of minimal 1% and maximum 2%, and redemption fee of maximal 2%.FSI Indonesia believes that now is the right time to launch a USD-denominated balanced mutual fund. "Measurestaken by the Fed to keep interest rates low at 0.25% will last until the end of 2014, so investors will have to rearrangetheir asset allocation and transfer most of their assets to investments that potentially offer attractive yields comparedwith placement in USD time deposits so that the overall wealth will not be eroded by inflation. But on the other hand,the high volatility of the capital markets also requires investors to invest wisely and carefully. FSI USD Balanced PlusFund is a mutual fund designed to achieve a mix of capital appreciation and provide long-term income by investing in abalanced portfolio of USD-denominated equity and debt securities traded in both domestic and overseas markets aswell as in USD-denominated domestic money market instruments, by applying an active and disciplined approach toinvesting in high quality assets. As a balanced fund, FSI USD Balanced Plus Fund allocates a minimum of 25% and amaximum of 75% in equities, and a minimum of 25% and a maximum of 75% in debt securities and money marketinstruments, thereby potentially providing maximum performance out of the capital market," said Hario Soeprobo,President Director of FSI Indonesia. Hario further stated that the fund employs the aggregate performance of theJakarta Composite Index/JCI (in USD, 50%), Indonesian government bonds denominated in USD with a maturityperiod of 5 years (35%) and average interest of 1-month USD time deposits (15%) as its benchmark.Eli Djurfanto, Head of Fixed Income at FSI Indonesia is optimistic that FSI USD Balanced Plus Fund will deliverattractive returns. “With allocation in equity and fixed income instruments traded in local and foreign bourses, investorcan enhance their return potential with optimal diversification vis-à-vis a simple investment in USD time deposits. Forfixed income portion of the fund, for the time being we are allocating it in USD-denominated Indonesian governmentbonds.”Hazrina R. Dewi, Head of Equity at FSI Indonesia adds that FSI Indonesia has a unique feature of being one of thevery few asset managers in Indonesia that employs a bottom-up approach in its investment process. More specifically,the expertise of FSI Indonesia’s investment team pivots on comprehensive and rigorous equity research, whichenables the tim to identify stocks that offer the potential for long-term superior returns.“The launching of this fund completes the range of products that FSI Indonesia has, said Hario Soeprobo, PresidentDirector of FSI Indonesia. Prior to the launch of this fund, FSI Indonesia has been managing five equity mutual funds:First State IndoEquity Sectoral Fund, First State IndoEquity Dividend Yield Fund, First State IndoEquity Value SelectFund, First State IndoEquity Peka Fund and First IndoEquity High Conviction Fund; two balanced funds: First StateIndonesian Balanced Fund and First State Indonesian MultiStrategy Fund; one fixed income fund: FSI Bond Fund; and1 money market fund: First State Indonesian Money Market Fund.***

Press ReleaseProduct SummaryFund nameFund typeInvestment managerCustodian bankNotaryLegal consultantPublic accountantDenominationInvestment objectiveInvestment guidelinesInvestment strategyBenchmarkDividend distribution policyFIRST STATE INDONESIAN USD BALANCED PLUS FUNDOpen-end fund (CIC) - BalancedPT First State Investments IndonesiaCitibank, N.A., JakartaNy. Poerbaningsih Adi Warsito, SHRoosdiono & PartnersPricewaterhouseCoopers (Tanudiredja, Wibisana & Rekan)USDTo achieve capital appreciation and deliver income in the long term by applying anactive, discipline approach in a balanced portfolio investment that comprises USDdenominatedequity, fixed income and money market instruments.• Equity: 25%-75%• Fixed income &/or money market instruments: 25%-75%The fund can invest in offshore instruments as per regulatory allowance. Wheninvesting in offshore instruments, the fund will adhere to the prevailing laws andregulations in Indonesia and the country that serve as the basis for the issuance of theinstrument.FSI USD Balanced Plus Fund is a USD denominated balanced fund that is activelymanaged with a balanced portfolio strategy between equity and fixed income/moneymarket instruments.50% JCI (in USD) + 35% 5-year USD-denominated Indonesian government bond +15% average interest on 1-month USD time depositNo dividends will be paid out. Investment returns accumulated in FS INDONESIANUSD BALANCED PLUS FUND will be reinvested into the fund.Biaya-biayaManagement fee: max 2.5%Custodian fee: max. 0.20%Subscription fee: min. 1% and max. 2%In the case where subscription is done without the involvement of a mutual sellingagent, then the Investment Manager has the prerogative to lower the subscriptionfee.Redemption fee: max. 2%Switching fee: max. 2%The minimum subscription and its subsequent top-up amounts are set at USD 1,000(one thousand US Dollars).Minimum pembelianMinimum balanceUnits offeredShould the fund be sold through an appointed mutual fund selling agent, the sellingagent – after prior notification to the Investment Manger – has the discretion to lowerthe minimum subscription and its subsequent top-up amounts. Nonetheless, suchamount shall not be lower than USD 100 (one hundred US Dollars).USD 1,000 (one thousand US Dollars) or 1.000 (one thousand) units1.000.000.000 (one billion) units