UTI MF looking at more Asian mkts

Kolkata: UTI Mutual Fund is mulling to take its partnership with Shinsei Bank to the next level, beyond Japan. It plans to draw on the Japanese bank's influence in other markets in Asia. UTI Mutual Fund is exploring the possibility of widening the scope of its association with a view to reach out to some of the countries where Shinsei has a strong presence. The broad proposal is to tap Shinsei's strengths elsewhere. The latter enables investments in stocks listed on Indian exchanges. The two partners had, in November last year, declared the partnership, which needed the Japanese outfit to distribute India-specific investment products managed and advised by UTI to Japanese investors. Shinsei, which offers institutional and retail banking as well as consumer and commercial finance, had $84 billion in total assets on a consolidated basis in June 2006.

The Mauritius-domiciled Shinsei UTI India Fund (Mauritius) Ltd, Class A investment securities, which infuses chiefly in Indian equities, and the Shinsei Short-Term Mother Fund, is mostly exposed to Japanese short-term corporate and government bonds and Japanese money market instruments.Generally, no foreign exchange hedging will be done, Shinsei had stated, adding that the BSE 100 will be taken as a reference in the investment fund. Incidentally, the sales fee payable to the Japanese bank was 3.15 per cent (3 per cent before tax). In recent years, the fund house has worked out initiatives with a few international players, including State Street Global Advisors.