Announcing the results for the year 1999-2000 here on Monday, UTI chairman PS Subramanyam said the Trust has set an overall target of mobilising Rs 20,000 crore during 2000-2001 against last year's collections of Rs 16,445 crore from all the schemes.

As reported in The Financial Express the Trust has hiked the dividend marginally. This has been possible because of the stock market buoyancy coupled with the proactive fund management strategy followed during the year. The yield on the dividend based on the July 1999 price works out to 10.185 per cent. For those in the 33 per cent tax bracket the yield works out to 15.2 per cent (post-tax) and for those in the 38.5 per cent tax bracket the yield works out to 16.56 per cent (post-tax).

The Trust has not decided to link the pricing to NAV. As on June 30, 2000 the estimated NAV was around Rs 14.20 compared to Rs 11.36 as on June 30, 1999. For dividend strippers who entered the scheme during June at a price of Rs 14.95, the yield works out to 9.19 per cent, which is a marginal reward for them.

The US-64 accounted for 28 per cent (Rs 4,668 crore) of the total collections of the Trust. Repurchases during the year aggregated Rs 2281 crore with net inflows at Rs 2,387 crore.

The equity componet of the US-64 portfolio has come down to 68 per cent from 72 per cent last year. The scheme has an exposure of 36.4 per cent in the information technology, communication and entertainment sectors, with IT alone accounting for about 21 per cent.

The UTI chairman expected the markets to remain bullish and he reiterated that the BSE Sensex could touch the 6000-mark sometime during Diwali. While maintaining that the ICE sector would continue to perform well, he said the old economy stocks would improve in the backdrop of the normal monsoons.

Talking to The Financial Express, Subramanyam said ``We will repeat the performance this year too, and we has set a target of mobilising Rs 20,000 crore for the year.'' While US-64 would continue to maintain its leadership, he pointed out that the monthly income plans will gain more popularity as they meet the requirement of safety, liquidty and reasonable yields.

The UTI has also made the pricing of ULIP NAV driven from July 3. Fresh sales under ULIP were Rs 105 crore, which is the highest ever. Together with renewal contribution, sales under ULIP amounted to Rs 678 crore. The sale and repurchase prices for July are Rs 15.80 per unit and Rs 15.50 per unit respectively. In ULIP, minimum amount of the target is being revised upward from Rs 6,000 to Rs 15,000 while the maximum amount is being retained at Rs 75,000 for the time being.

The UTI Growth Sectors Fund (UTI-GSF), comprising five sectoral funds i.e. Brand Value Fund, Pharma and Healthcare Fund, Software Fund, Petro Fund and Services Sector Fund with total sales of Rs 2,050 crore, accounted for 81 per cent of the total sales under equity schemes. This is in line with the marked shift in investor preference for sector funds witnessed during the year. Repurchases under equity schemes aggregated Rs 4773 crore. Twenty-two out of the 28 equity schemes (2 out of 30 equity schemes are passive index funds) have outperformed the BSE Sensex in the last one-year.

Total sales under debt-oriented schemes aggregated to Rs 9,012 crore and repurchases/redemptions to Rs 4,773 crore. Three Monthly Income Plans (MIPs) collected Rs 3,093 crore. UTI G-sec Fund, open-end gilt fund launched during the year, mobilised Rs 822 crore. UTI-Money Market Fund collected Rs 1165 crore and UTI Bond Fund Rs 1,391 crore.

During the year, UTI raised Rs 238 crore under off-shore funds. UTI launched two new offshore funds India Media Internet Communications Fund and India Infrastructure Fund. The current size of UTI's off-shore funds is Rs 2,811 crore. The oldest of UTI's off-shore funds, India Fund has outperformed the BSE Sensex and S&P CNX Nifty during the year. NAV as on June 30, 2000 was Rs 1,621.60. The current fund size is Rs 248 crore. The Rupee NAV of close-end India Growth Fund outperformed the benchmark BSE Sensex. The Fund size was Rs 826 crore. During the year, the India IT Fund received inflows of $45 million and outflows of $35 million. The current fund size is Rs 1,576 crore.