Indonesian investment management firm PT Aberdeen Asset Management, is gearing up for electronic trading (e-trading) with support from PT Phillips Securities Indonesia, reports Digital News Asia.
Phillips Securities will help Aberdeen to market its mutual funds product via it’s mobile-friendly online trading platform Poems (Phillips’ online electronic mart system). Prior to this initiative, customers would typically have to go through sales agents at banks for their mutual funds needs and requirements.
As of now, there are two products available on the Poems platform, The Aberdeen Indonesia Money Market Fund and the Aberdeen Indonesia Balanced Growth Fund. The company is set to launch three more products by August. Phillips Securities Indonesia launched Poems in 2003, and the platform currently has 21 investment management firms on board, offering more than 100 products.
The e-trading platform is an effort by Aberdeen to recruit more customers and reach out beyond its current customer base. With Phillips’ strong mobile platform, Aberdeen will be able to leverage from the mobility know how of its partner.
The company said it is targeting to be in the top five of the largest investment management firms in Indonesia by 2020. There are 84 such firms listed by the Financial Services Authority.
Aberdeen currently has a fund value of $68.4 million, whilst the top two investment management firms in Indonesia, Schroder Investment Management with $3.7 billion in value and Paribas Investment Partners with $1.7 billion, in value. This makes Aberdeen’s five year goal very ambitious and an online platform seems to be one promising avenue.
Shifting customer behavior
Having Aberdeen’s products trading online means customers can check on their investment performance all the time as it helps them feel more secure. Sigit said that the online purchasing of mutual funds was a challenge earlier, as customers felt safer communicating and meeting with sales agents. However, consumer behaviour is now changing and moving increasingly to mobile channels, a gap that needs to be filled, he said.
Aberdeen’s announcement comes after Indonesia’s Financial Service Authority’s regulation issue; in which the government would allow for investment managers to partner with third parties to sell funds via electronic channels.
A version of this appeared in Digital News Asia on July 20. Read the full version here.