UTI Asset Management Company is close to forging a tie-up with a European bank for launching an offshore fund dedicated to investments in the domestic infrastructure stocks. The corpus of the fund will be about $300 million. | |
| This will be UTI AMC's second infrastructure fund and comes after the close of its first infrastructure fund it launched in tie-up with Australia's AMP in 1999. The fund had given a compounded annual growth rate (CAGR) of 35 per cent in dollar terms. |
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| "We are negotiating with a top European financial services firm for this fund, which would be aimed at investing in infrastructure. Once through, this would be the foreign firm's first India-centric investment," UTI MF Chairman and Managing Director U K Sinha said. |
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| With rising equity returns from the domestic investments, the domestic AMCs were looking forward to launching more offshore funds, said analysts. UTI AMC had raised $108 million from Japanese investors recently through a tie-up with Shinsei Bank. "We have started investing that money in India," Sinha said. |
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| UTI AMC, through its subsidiary UTI International has five offshore funds, which also include India fund, India IT fund and India Pharma fund. |
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| The company recently lost its number-one position in the mutual fund business to Reliance Mutual Fund. |
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