UTI MF to revamp offshore funds

UTI Mutual Fund is planning to revamp some of its offshore funds to attract more expat investors from the Gulf.

UTI MF currently operates four offshore funds, India Infrastructure, Fund, India Media, Internet and Communication (IMIC), India Fund and India, India IT Fund.

The country's largest fund has nearly Rs 20,000 crore of assets under management (AUM) spread across 41 domestic funds, while it has a corpus of Rs 350 crore from four offshore funds.

Close on the heels of acquiring IL&FS' Rs 2,500 crore AUM, UTI MF is now looking at restructuring some of its offshore funds.

It is closing down the IMIC Fund, which was launched in April 2000. Ajay Argal, fund manager at UTI MF, said, "We are on the verge of shutting down some of our offshore funds and are completing the sale proceeds. IMIC Fund had raised $54 million during its initial offering, with more than 50 per cent of the funds being raised from Europe, the US and Middle East. This fund has invested in a number of unlisted companies media and Internet companies during the technology-boom." Adds Argal, "The sector is completely out of favour now."

Meanwhile,UTIMF is marketing its India Fund in the Gulf through its Dubai branch office, which covers UAE, Oman, Kuwait, Saudi Arabia, Qatar and Bahrain and other countries.

Adds Argal, "Our recent marketing in the Gulf has seen an overwhelming response." He also added, "We have reduced the minimum investment in the fund to 2,000 pounds from 5,000 pounds earlier. Now, we are considering a separate dollar domination subscription in the fund."

India Fund currently manages a corpus of around Rs 75 crore. Meanwhile, UTIMF is also increasing its focus on institutional clients in the UK, Europe and US.

UTI International, a 100 per cent subsidiary of UTIMF registered in the island of Guernsey, which administers and markets of various offshore funds.