US-2002 to become operational from Nov 15

The unitholding of both the categories of investors—those of US-64 and proposed US-2002—would have the same NAV on November 14, it said. The proposed split of US-64 into two schemes would not affect the eligibility of unitholders covered under the special repurchase scheme announced by the government, it said.

The books of US-64 will remain closed from November 2 to 14, 2002 for all unitholders to effect the above mentioned changes. US-2002 will be open for sale to new investors at NAV from November 15, 2002. US-2002 would invest a maximum up to 75 per cent in debt and its exposure to equity investment would be a minimum 25 per cent and a maximum 55 per cent.

UTI said at least 7.5 per cent of the total investment would be in Government of India securities (G-Secs) and for investment in corporate debt where the paper should have minimum ‘AA’ rating from the rating agencies.

UTI said the present special package of repurchase under US-64, which is applicable for all the unitholders holding units as on June 30, 2001 will continue as per the governmental package which was earlier announced.

US-2002 would be a fully Sebi compliant scheme since the first day of its launch, it said.

It said as per the Sebi MF guidelines, assets would be hived-off to the new scheme from the present US-64 in proportion to the unit capital of the two schemes and in case of non-eligible assets the new scheme would receive proportionate cash component.

Minor adjustments, if any, would also be settled in cash, it further said. US-2002 aims to provide income distribution/accumulation of income and capital appreciation over a long term from a prudent portfolio mix of equity and fixed income securities, UTI said in its offer document filed with Sebi two days ago.