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UTI ups the disclosure bar for funds

N Mahalakshmi

Where there is a will, there is way. This is the message the newly appointed chairman of the Unit Trust of India seems to be sending across by improving portfolio disclosure tremendously.

Commendably, the latest portfolio disclosure of UTI's mutual fund schemes seems better than what many private sectors funds can boast of today.

Till last month, the trust used to give bare minimum details about the portfolio. This included the name of the holding, the nature of holding _ equity, non-convertible debentures, or any other debt or money market instrument --- and the percentage of holding to the net assets.

The latest portfolio disclosure, includes particulars like coupon rate on debt instruments, the rating assigned to the instrument, quantity held, market value of the holding and what it constitutes as a percentage of net assets.

Besides, there are other significant details like total value of illiquid stocks, total non- performing assets in the portfolio and what they constitute as a percentage of net assets, outstanding exposure in derivatives and investments in foreign securities including ADRs, GDRs and so on.

And all this information is available on the UTI website. This is the first time in the history of the 37-year old mutual fund that disclosure is so impeccable. Even the annual reports till last year, did not disclose portfolios in such great detail.

UTI has been condemned all these years for lack of transparency. The new chairman has been making statements that his focus will be on improving transparency, apart from other thing. He seems to be swinging in action already.

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