UTI Mutual Fund plans two offshore funds

The Unit Trust of India Mutual Fund (UTIMF) is planning to launch two offshore funds. One will invest in pharmaceutical firms, while the other will be an India Dedicated Debt Fund, which will invest in gilts, public sector bonds and short-term liquid instruments.

A K Sridhar, UTIMF chief investment officer said, "We are looking at marketing these funds in the UK, Europe and the Middle East and have tied up with local distributors."

"We will be exploring the US on a selective basis and will tap some local funds to market our funds." "UTIMF is looking at qualified institutional investors and non-resident Indians to invest in these funds," Sridhar added.

UTIMF is planning to mobilise around $30-35 million for the pharma fund and $70-75 million for the India Dedicated Debt Fund. Both these offerings are expected to be completed by first week of June.

UTIMF operates in the Gulf through its Dubai branch office, which covers UAE, Oman, Kuwait, Saudi Arabia, Qatar and Bahrain and other countries.

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