UTI MF to launch Global Navigator Fund

UTI Mutual Fund, the country's oldest and largest asset management company, will launch its Global Navigator Fund by the first quarter of 2007.

The fund house, which filed the offer document for the new fund offer last month with the Securities and Exchange Board of India, hopes to mobilise $100 million through the scheme.

The scheme will predominantly invest in stocks of companies comprising the MSCI All Country World Index and in shares of emerging markets, said officials.

UTI MF has tied up with global investment advisors Select Street Global Advisory, which manages more then a trillion dollar assets for investment advisory services. SSgA will be handling the fund on behalf of UTIMF, officials said.

The proposed launch follows the recent relaxation of norms by Sebi, which allows fund houses to invest across sectors globally. Under earlier rules, domestic fund houses could invest in those foreign companies that had at least 10 per cent holdings in their Indian arms.

The Reserve Bank of India (RBI) also recently hiked the total investments by domestic fund houses in global markets to $2 billion.