UTI MF may tie up with Societe Generale

After SBI Mutual Fund, UTI Mutual Funds is in talks with Société Générale Asset Management (SGAM) of France for managing its funds globally.

The tie-up is a part of UTI's plans to increase its global business to $1 billion by the end of 2007. As a part of the tie-up, SGAM will be managing UTI's funds in the overseas market.

SGAM, a dominant player in the global mutual fund arena with presence in over 20 countries in Europe, United Sates, and Asia, is already managing SBI Mutual Fund's products after it entered into an agreement nearly a year ago.

"We are in the process of bringing out a product with an international look for which the company is in talks for a tie-up with Société Générale," said Gautami Desai, Fund Manager of UTI AMC's new scheme UTI - Infrastructure Advantage Fund Series - I, a three-year close-ended equity scheme.

Refusing to divulge further details of the possible tie-up, Desai said, "The company has not decided on the possible sectors where the international fund would be investing."

On the NFO focussing on the infrastructure in the country, she said that the company is expecting a corpus of over Rs 4,000 crore from it.

The scheme, which closes on December 19, 2007, will invest in sectors like construction, energy, engineering, metals, power, telecom, transportation, airports, and others.

With 30.5 per cent of the total investment of Rs 20,18,709 crore on infrastructure earmarked by the government over the next five years to be spent on power in the country, Desai added that the sector will gain a priority among equity and venture funds.