The Hindu Business Line : UTI’s energy fund to focus on new areas of investment

Kolkata, Sept. 5 The petroleum sector fund managed by UTI Mutual Fund will change tack by broadbasing its investment strategy in order to cover a host of new areas.

To be called UTI Growth Sectors Fund – Energy Fund (it is now called UTI Growth Sectors Fund — Petro Fund), the fund will choose its stocks from industries such as power generation, power equipment, ethanol production, pipes/cables and others. Also, companies involved in providing consultancy to and financing of these businesses will be considered.

Industrial manufacturing companies that make equipment related to “energy development” may make it to the select list, the fund house has mentioned in a notice to unit holders. The fund’s current investment objective covers stocks of companies engaged in oil and gas exploration and drilling, refining, petrochemicals, construction and management of pipelines. UTI MF has given unit holders the option to redeem their existing units at the prevailing net asset value without any load, beginning September 6. The exit window closes on October 5.

The fund has large exposure to Reliance Industries, ONGC, IOC, GAIL and BPCL, among others. Data supplied by distribution firm Plexus Management indicate Reliance was the No 1 holding in July, accounting for 32 per cent of the assets. ONGC and IOC contribute 18 per cent and 10 per cent, respectively. BSE Oil & Gas index, it may be mentioned, has given 17.25 per cent on a one-year period, while its two-year and three-year records have been 21.13 per cent and 22.75 per cent, respectively.

The fund’s corpus stood at Rs 171 crore in August, down by about Rs 4 crore compared to the previous month. Its assets under management (AUM) have not changed critically in recent months. Its end-February AUM, for instance, had stood at Rs 166 crore or so, Plexus has noted.

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