Eastspring Investments Indonesia expands its coverage of the local fund market through a distribution deal with HSBC.

PT Eastspring Investments Indonesia, the Indonesian business of Prudential-owned asset manager Eastspring Investments, has signed a deal with HSBC Indonesia to distribute the former's equity fund product to the local market.

According to the signed memorandum of understanding, HSBC will distribute the Eastspring Investments Alpha Navigator equity fund to its retail clients in the country. The product is an open-ended equity fund that searches for "added value" through concentrated stock picking and value investing, thus offering customers an alternative option to expand their investments and growth their wealth.

"Our partnership with HSBC will expand our distribution network further. Currently, there are approximately 160,000 retail mutual fund investors in Indonesia, which has a population of around 250 million," said Riki Frindos, president director of Eastsptring Investments Indonesia.

HSBC is not the only foreign bank with whom Eastspring has distribution arrangements. Earlier, it inked agreements with Standard Chartered Bank, Permata Bank, Mandiri Sekuritas and ANZ. Data from the Indonesian Financial Services Authority shows that the local mutual fund industry saw a 2.64 per cent rise to IDR192.54 trillion ($16.4 billion) in 2013, from IDR187.59 trillion in the previous year. As at 30 September 2013, Eastspring recorded IDR37.22 trillion assets under management.