T Rowe Price, which recently acquired 26% stake in UTI AMC, will manage the proposed overseas fund of the Indian fund house
US-based foreign institutional investor T Rowe Price, which recently acquired 26% stake in UTI AMC, will manage the proposed overseas fund of the Indian fund house, reports PTI.
"We are trying to raise money from here for investing in foreign securities and that money will be managed by T Rowe. We have filed the proposal with SEBI. As soon as we get SEBI’s approval, we will launch the product," UTI MF chairman UK Sinha said.
Around 65%-100% of this fund would be invested in foreign securities in emerging markets, Mr Sinha said.
Meanwhile, T Rowe Price (TRP) ruled out any immediate plans for upping its stake in UTI AMC. "We have no plans at this stage," TRP vice-chairman Edward Bernard said when asked whether his company wants to raise its stake in UTI MF.
Mr Bernard added that there are also other shareholders involved in UTI MF and his company's interest in the mutual fund is high.
TRP completed its acquisition of 26% stake in UTI AMC through its wholly-owned subsidiary T Rowe Price Global Investment Services for Rs650 crore and gained representation on the board of UTI AMC.
The foreign fund acquired 6.5% stake from each of the four original stockholders—State Bank of India, Punjab National Bank, Bank of Baroda and LIC—amounting to 26% in UTI Asset Management Company and UTI Trustee Company.