UTI Asset Management scouts for IT firm

UTI Asset Management Company (AMC) is planning to acquire an information technology (IT) firm, which would handle the company's registrar and transfer agents.

On the sidelines of a press conference to launch UTI Mutual Fund's UTI-Contra Fund, D S R Murthy, executive director, UTI AMC, said the need for acquuiring an IT firm arises with the growing customer base of the bank. "AMC would require an IT firm to improve its customer service efficiency," he said.

The net asset value of stocks traded has to be provided to customers on daily basis, for which a strong IT initiative is required, he added. Currently, the UTI AMC customers are serviced by four registrar and transfer agents such as UTI Technology Services, Cams, Karvi and Datamatics.

UTI-Contra fund is an open-ended equity-oriented scheme. The fund closes on March 22, 2006. The scheme would re-open for continous purchase and redemption from April 20, 2006.

The scheme aims to provide long-term capital appreciation distribution through investments in listed equities and equity-realted instruments. It offers an opportunity to benefit from the impact of non-rational investors behaviour by focusing on stocks that are currently undervalued because of emotional and behavioural patterns present in the stock market.

R Vijayakumar, regional sales head-South, UTI AMC, said, "The fund would benefit from the non-rational behaviour of the investor and focus on out-of-stocks. Thus, UTI-Contra fund would not only be contrarian to the majority but also try to identify stocks with intrinsic potential and a good management bandwidth."