The Hindu : Business : UTI MF goes global, ties up with SSgA

Online edition of India's National Newspaper
Friday, May 28, 2004

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Business

UTI MF goes global, ties up with SSgA

By Our Staff Correspondent

KOLKATA, MAY 27. The UTI Mutual Fund has opened the scope of overseas investment to Indian investors. The asset management company has today entered into an exclusive arrangement with State Street Global Advisors (SSgA) for giving advises to UTI MF for its overseas investments through specific funds and schemes.

Announcing the tie-up, M. Damodaran, Chairman and Managing Director of UTI AMC, told newspersons here today that the company would launch the first overseas investment fund subject to Securities and Exchange Board of India (SEBI) approval shortly.

"We hope the fund would receive favourable response from our investors."

It may be mentioned that the SEBI has fixed the maximum limit for mutual fund investment in overseas capital and debt market at 10 per cent of net assets of each mutual fund subject to a ceiling of $50 million.

Stating that the arrangement is merely a beginning of a relationship and is strictly `fee based', Mr. Damodaran stressed that the arrangement would not lead to shared ownership or joint venture.

On reasons behind shortlisting SSgA, the world's largest institutional asset manager, he said besides being one of the best in the trade, the foreign firm sports an impeccably `clean image'.

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