The Hindu Business Line : UTI Mutual to lend expertise, pick stakes in foreign firms

UTI Mutual Fund is readying to lend its expertise as well as take stakes in overseas players aspiring to enter the asset management business. It has already talked to a Thailand-based institution that intends to set up an investment management company.

UTI Mutual may invest in the Thai firm's equity and provide it with technical support. The latter is likely to be in such areas as fund management, fund-accounting and back office functions.

The venture, if it takes shape, will be its first initiative in this direction after it moved out of a similar arrangement partnership in Egypt, indicated Mr U.K. Sinha, CMD.

UTI MF, which has earlier talked to a few overseas outfits for possible partnerships, is prepared to explore opportunities in the Asia-Pacific region. It sold its stake in the Egyptian company a few years ago, he added.

While the name of the Thai firm is not being disclosed at the moment, discussions with it have taken place at a time when the Indian fund house has worked out an arrangement with Shinsei Bank of Japan.

The UTI MF-Shinsei Bank tie-up is expected to result in a special fund, which Mr Sinha feels should be able to raise at least $300 million from investors.

"We are aiming at a December-January launch. There is appetite for Indian paper abroad, which the fund will try to tap," he said. UTI International Ltd, an UTI MF subsidiary, is in future expected to play a more important role as far as scaling up the MF's global presence is concerned, it is pointed out.

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