The Hindu Business Line : UTI AMC to launch $200-300-m overseas infrastructure fund

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UTI AMC to launch $200-300-m overseas infrastructure fund

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2 new funds for domestic market; net equity purchases at Rs 900 cr last week

New Delhi , May 29

A slew of fund offerings for both domestic and overseas investors are in the offing from the stable of UTI Asset Management Company in the next three months, its Chairman and Managing Director, Mr U.K. Sinha, said here on Monday.

Besides two new fund offerings targeted at the domestic market, plans are afoot to launch a $200-$300 million offshore infrastructure fund through UTI International, an entity registered in the tax heaven of islands of Guernsey (The Channel Islands).

Approvals

"We are expecting the regulatory approvals for the open-ended infrastructure fund by the end of July. The aim is to garner $200-300 million. We are targeting investors in Europe, Middle East and East Asia. An investor from Europe has already evinced interest to invest up to $ 35 million in this fund," Mr Sinha told reporters.

UTIAMC is also planning to launch two domestic funds — a diversified closed-ended equity fund and a gold-exchange traded fund — in the coming months. "The closed-ended diversified equity fund would be launched after SEBI's approval sometime in July. The gold-exchange traded fund would take another three months," Mr Sinha said.

He also said that the total assets under management (AUM) of UTIAMC is expected to grow to Rs 40,000 crore by the end of March 2007 as compared to a level of Rs 29,500 crore on March 31, 2006. The AUM had grown from about Rs 20,000 crore as on March 31, 2005 to about Rs 29,500 crore as on March 31, 2006.

Net equity purchases

UTI Mutual Fund made net purchases of Rs 900 crore worth of equity last week.

"We have last week bought Rs 900 crore worth of equity. This is net purchases. We have bought into sectors such as automobiles, information technology, power, cement and infrastructure," Mr Sinha said.

Asked to comment on the current valuations, Mr Sinha said, "I won't say they are cheap". He, however, observed that there was scope for people to make money.

Sensex has slipped by about 14 per cent from the record level of 12,612.30 on May 10 to a closing level of 10,853.14 as on May 29.

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