NEW DELHI, June 3: The UGS 10000 fund from the Unit Trust of India has garnered close to Rs 60 crore. Collections have thus fallen short by Rs 140 crore as UIT had set an internal target of Rs 200 crore. The scheme was a rights issue for unitholders of UGS 2000 and 5000 with a minimum investment for 500 units (Rs 5000) and maximum investment for 1000 units (Rs 10,000). The mutual fund behemoth could garner a maximum subscription limit was Rs 1317.87 crore.According to a senior official of UTI, the response was still good considering the state of the equity market. ``We are satisfied with the response for the issue although the internal target could not be achieved,'' said another official.
An interval fund, UGS 10000 aims at generating returns over a period of time through investments in MNC stocks. The scheme opened for subscription on April 15 and closed on May 29. It would open for sale and repurchase of units after every six months for seven days. The sale of units would be open to general public ata 3 per cent discount to the net asset value.
Both UGS 2000 and UGS 5000 are closed-end equity funds, listed on the Mumbai Stock Exchange and also open for repurchase. Repurchase is at a 5 per cent discount to teh net asset value. The May 27 NAV for UGS 2000 is Rs 14.11 while the repurchase price is Rs 13.41.
In the case of UGS 5000, the NAV is Rs 17.13 and the repurchase price for the first week of June is Rs 16.28. While UGS 2000 was launched in September, 1990, UGS 5000 was made open for subscription in September, 1991.
The schemes have given returns at compounded rate per year of 17.48 and 11.71 per cent since launch, respectively. UGS 2000 units on BSE trade at Rs 13, a discount of Rs 1.11 to the NAV. UGS 5000 units trade at Rs 15.60, which translates into a discount of Rs 1.53 to NAV.
Both the unit growth schemes have given rights and bonus issues. UGS 2000 issued bonus units in the ratio of 1:4 in 1994 and a rights issue was offered twice to unitholders in the ratio of 1:1. While the firstrights issue was at Rs 15, the second offer in 1997 was at par. In the case of UGS 5000, there was a bonus issue in the ratio of 1:5 in 1994, followed by a rights issue at par. UGS 5000 had doubled its outstanding unit capital as a result of the rights issue. As at early 1997, the two schemes have a combined investor base of 13.5 lakh. While UGS 2000 is due for redemption in December 2000, 5000 will come up for redemption in October, 2001.
Meanwhile, UTI launched two new funds on June 1 - an index fund and a value fund. The Master Index Fund is a passive fund and will track the 30-scrip BSE index. O the other hand, value fund will invest in low cap stocks from the B group. The schemes close for subscription on June 30.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
