UTI MF Likely To Join Hands With Societe Generale

Ahmedabad: After SBI Mutual Fund, UTI Mutual Funds is in negotiations with Societe Generale Asset Management (SGAM) of France for managing its funds globally. The alliance is a part of UTI's plans to increase its global business to $1 billion by the end of 2007. As a part of the alliance, SGAM will be managing UTI's funds in the overseas market. SGAM, a dominant player in the global mutual fund arena with presence in over 20 countries in Europe, United Sates, and Asia, is already managing SBI Mutual Fund's products after it entered into an agreement nearly a year ago.

The company has not decided on the possible sectors where the international fund would be infusing. The company is hoping a corpus of over Rs 4,000 crore from it. The scheme, which closes on December 19, 2007, will infuse in sectors like construction, energy, engineering, metals, power, telecom, transportation, airports, and others. With 30.5 per cent of the total investment of Rs 20,18,709 crore on infrastructure earmarked by the government over the next five years to be spent on power in the country.