US-64 turns around, reserves up 2500%

The scheme drew sustenance from large inflows into unit premium reserves at about Rs 500 crore as against an outflow of around Rs 1,000 crore in the previous year and a write-back on the provision for depreciation aggregating Rs 500 crore. Further, Rs 750 crore accrued to the kitty through higher general reserve and higher revenue appropriations.

The 1999-2000 annual report of the country’s largest mutual fund said that the unit capital of the scheme stood at Rs 15,146 crore over Rs 13,544 crore, a rise of 11.8 per cent while the market value of the investments went up by 22 per cent to Rs 21,297 from Rs 17,425 crore. There was a 17.3 per cent rise in the net income to Rs 2,800 crore during 1999-2000 up from Rs 2,388 crore last year.

The US-64 has rebalanced continously its portfolio and booked profits at every opportunity during the year. The fund’s performance has been mainly attributed to active portfolio restructuring and churning. It has increased its exposure to the growth sectors such as IT, media, telecom and pharma to 36 per cent during 1999-00 from 15 per cent during the corresponding period of last year. Within these new growth sectors exposure in IT and media has increased to 23 per cent from 6 per cent. While it reduced its exposure to cyclicals to 10 per cent from 16 per cent.

"While reducing the cyclicals, care has been taken to ensure that the stocks, which have growth potential, have been retained to add value to the US 64 portfolio as this sector has started turning around" the report said. Further, it also said even after taking exposure to the IT and media stocks the risk diversification attained in the flagship scheme is healthy and takes care of market vicissitudes.

During the year, UTI launched eight new schemes which collected around Rs 4,309 crore. The newly launched schemes include four new debt/incomes schemes, two new equity schemes and two offshore funds during the period July-June 2000.

The number of schemes in operation and in plans under UTI during the year ended June 30, 2000 was 92 compared to 86 in 1998-99. However, the cash value of unit sold has reduced from Rs 18,978 crore to Rs 16,846 crore. The face value of units sold has also reduced from Rs 17,000 crore to Rs 13,458 crore.

The four debt/income schemes that were launched mobilised over Rs 4,149 crore as on June 30, 2000 while UTI G-Sec Fund garnered Rs 851 crore. Out of the four schemes launched, three were monthly income schemes. The schemes launched were MIP 99(II), UTI G-Sec Fund, MIP 2000 and MIP 2000 (II).

However,the money collected by the MIP schemes were lower at Rs 3,298 crore as compared to Rs 5,807 crore collected by the four MIP schemes launched last year. UTI G-Sec Fund declared interim income distribution of Rs 4.50 per unit in March 2000 and Rs 1.50 per unit in May 2000. The thirteen open-ended domestic equity schemes and one interval fund which opened for sales collected Rs 2,514 crore. GSF-Software garnered the highest amount at Rs 1,158 crore.

New features were also added to several existing products. Mastergrowth 93 was made open with effect from December 01, 1999. US 95 was repositioned as a dynamic balanced-fund. Roll-over facility between schemes were given. Common application were introduced for eight equity oriented schemes. A single form was also introduced for UTI Bond Fund, G-Sec Fund and US 95. UTI delisted four open ended and equity schemes and two equity schemes as it provided repurchase facilities to all the unit holders of these schemes.