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from BUSINESS LINE, January 21, 2010 Mumbai, Jan. 20 - UTI Mutual Fund is planning to launch an overseas fund that will invest up to 65 per cent of its corpus in emerging market securities, said Mr U.K. Sinha, Chairman and Managing Director of UTI Asset Management.
He was speaking on the sidelines of an event held to close T. Rowe Price's acquisition of 26 per cent stake in UTI AMC, a deal that made the US-based investment manager the largest shareholder. The overseas fund will be sold as a UTI fund but will be marketed using T. Rowe Price's expertise, added Mr Sinha.
The 26-per cent stake will give T Rowe Price a representation on the UTI MF Board. Two representatives of T Rowe Price will be inducted on the board now, said Mr Sinha.
"Our marketing and sales force and technology and operations teams are meeting with the UTI team to chart out business strategies for the future," said Mr James A.C. Kennedy, Chief Executive Officer, and President of T. Rowe Price Group.
The strategic tie-up will not involve any change in the fund manager profile at UTI, said Mr Sinha.
But T Rowe Price's expertise would be brought in for UTI's pension fund management, he said.
T Rowe Price is one of the largest pension managers globally, said a UTI official.
The Baltimore-based T Rowe Price Group had bought 26 per cent stake in UTI AMC last November for Rs 2,500 crore. They had acquired 6.5 per cent stake from the sponsors of UTI AMC - SBI, Punjab National Bank, Bank of Baroda and Life Insurance Corporation.
SBI Chairman and Managing Director, Mr O.P. Bhatt, said at the event, "The proceeds from the State Bank of India's stake sale in UTI Asset Management Co to T Rowe Price Group would reflect in the October-December profits of the bank." Copyright 2010 Business Line
He was speaking on the sidelines of an event held to close T. Rowe Price's acquisition of 26 per cent stake in UTI AMC, a deal that made the US-based investment manager the largest shareholder. The overseas fund will be sold as a UTI fund but will be marketed using T. Rowe Price's expertise, added Mr Sinha.
The 26-per cent stake will give T Rowe Price a representation on the UTI MF Board. Two representatives of T Rowe Price will be inducted on the board now, said Mr Sinha.
"Our marketing and sales force and technology and operations teams are meeting with the UTI team to chart out business strategies for the future," said Mr James A.C. Kennedy, Chief Executive Officer, and President of T. Rowe Price Group.
The strategic tie-up will not involve any change in the fund manager profile at UTI, said Mr Sinha.
But T Rowe Price's expertise would be brought in for UTI's pension fund management, he said.
T Rowe Price is one of the largest pension managers globally, said a UTI official.
The Baltimore-based T Rowe Price Group had bought 26 per cent stake in UTI AMC last November for Rs 2,500 crore. They had acquired 6.5 per cent stake from the sponsors of UTI AMC - SBI, Punjab National Bank, Bank of Baroda and Life Insurance Corporation.
SBI Chairman and Managing Director, Mr O.P. Bhatt, said at the event, "The proceeds from the State Bank of India's stake sale in UTI Asset Management Co to T Rowe Price Group would reflect in the October-December profits of the bank." Copyright 2010 Business Line
