The Hindu Business Line : UTI to launch Global Navigator Fund

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Kolkata Feb. 27 UTI Mutual Fund will launch a Global Navigator Fund next fiscal. A tie-up has been entered into with State Street Global Advisors of Boston, which would advise UTI Mutual Fund on how to manage the fund, the proceeds of which would be primarily invested in emerging global markets, according to Mr Jaideep Bhattacharya, Chief Marketing Officer of UTI AMC.

Speaking to newspersons on the sidelines of a press conference held here today to announce the launch of UTI Gold ETF, Mr Bhattacharya said the Global Navigator Fund would provide Indian investors with an opportunity to invest in emerging and developing economies on the global scale "such as China, Taiwan, Brazil and may be even India". SEBI permission had been sought for the Fund and discussions are under way for road shows that would be held in this regard.

UTI MF has the permission of statutory authorities to raise up to $200 million under the aegis of the Global Navigator Fund. SSgA would be paid a fee for advise on investment options.

A dedicated fund for the real estate sector could well be launched when guidelines in this regard are finalised by SEBI, he said.

Mr Bhattacharya said the UTI Gold Exchange Traded Fund would be open for subscription between March 1 and 12. It would be an open-ended fund designed to track the performance and yield of an underlying asset like gold. With the rise in the price of gold beating inflation year-on-year, the UTI Gold Exchange Traded Fund was aimed at hedging against inflation.

Every unit of UTI Gold Exchange Traded Fund would approximately represent one gram of pure gold. Units allotted under the scheme would be credited to investors' demat accounts. During the New Fund Offer (NFO) period, investors can invest a minimum application amount of Rs 20,000 and in multiples of value of one gram of gold thereafter. After the NFO, post listing, units can be bought and sold by investors on the National Stock Exchange. Present options provide for redemptions in cash only even as redemption in gold at a later stage as an option has not been ruled out.

To promote investment in this new asset class, UTI Mutual Fund would hold road shows across the length and breadth of the country in the days ahead, Mr Bhattacharya said.

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