UTI-AMC to launch GETF shortly

Tiruchirapalli, Feb 9 (UNI) The UTI Asset Management Company Private Limited (UTI-AMC) would launch a novel Gold Exchange Traded Fund (GETF) scheme, shortly.

Addressing a newsconference here this evening, its Chairman and Managing Director U K Sinha said within two weeks, the company would launch the scheme through its 71 branches across the country.

The SEBI had accorded its clearance and UTI-AMC had made a tie up with NOVA SEOTIA Bank to be the Bank of Custodian for the bullion stocks. The purpose was to enter into risk diversification exercise with gold as an important investment. The projection on this venture was to accrue minimum quantum of Rs 1,000 crore within three weeks from the launch date.

In the last four years, UTI Mutual Fund (UTI MF) had almost amassed three times the assets and as of January 31, 2007 it was Rs 37,535.08 crore. Last year, it was just Rs 25,000 crore and it is expected to be over Rs 45,000 crore this fiscal.

The company would go in for a massive expansion by increasing its branch-strength to 100 from 71 across the country before March end and it would be 150 before the end of this calendar year.

UTI MF was also planning to facilitate the Indian investors to buy shares and invest in overseas platform. This was a decision by the UTI Board with Reserve Bank of India (RBI) allowing two billion US Dollars.

For technical expertise, UTI MF had tied up with State Street Global Advisors (SSGA). The fund house would be going into investing through the feeder fund route for overseas investment through an existing fund of SSGA.

The SEBI had allowed 200 Million U S Dollars for an individual Mutual Fund Organisation, to be launched in the next fiscal. About offshore funds, he said UTI MF had been receiving overwhelming response and the fund portfolio had crossed 300 million U S Dollars.

He elaborated that it was just 50 million U S Dollars till December 2005 and it grew into 150 Million Dollars by December 2006.

At this point of time, UTI MF got into a tie-up with the Japanese Institution (SHINSEI Bank) and through which another major slice of 150 million U S Dollars was mopped up in the Asian Market. And as such both European and Asian markets put together the offshore funds had crossed 300 Million Dollars and it was bound to move up further in the future.

The UTI Venture Company Limited, a subsidiary of UTI MF (Headquartered at Bangalore) had also accrued portfolio funds (offshore) valued more than 175 Million Dollars, he added.

UNI