Addendum
No. - 22/2012-13
September 28, 2012
Steps to re-energise Mutual Fund Industry
Pursuant to SEBI Circular No CIR / IMD / DF / 21 / 2012 dated September 13, 2012 on “Steps to
re-energise Mutual Fund Industry”, Investors of all the UTI Mutual Fund (UTI MF) schemes are
hereby informed of the various changes effective from October 1, 2012.
A. Total Expense Ratio (TER) :
Additional TER shall be charged upto 30 bps on daily net assets of the scheme if the new
inflows from beyond top 15 cities (as per SEBI Regulations/Circulars) are at least (a) 30%
of gross new inflows in the scheme or (b) 15% of the Average Assets under Management
(AAUM) of the scheme, whichever is higher.
In case inflows from beyond top 15 cities is less than the higher of (a) or (b) above,
additional TER on daily net assets of the scheme shall be charged as follows:
Daily net assets X 30 basis points X New inflows from beyond top 15 cities
365* X Higher of (a) or (b) above
* 366, wherever applicable.
Additional expenses, incurred towards different heads mentioned under Regulations 52(2)
and 52(4), not exceeding 0.20 per cent of daily net assets of the scheme shall be charged;
The Investment Management and Advisory fees charged by the AMC (‘AMC fees’) to
respective scheme(s) of the Fund will be within the Total Expense Ratio as prescribed by
SEBI Regulations, as amended from time to time, with no sub-limit on said AMC fees as
currently mentioned under respective Scheme Information Documents (SIDs) of the Fund.
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Addendum
B. Service Tax :
UTI AMC shall charge service tax on investment and advisory fees to the scheme in
addition to the maximum limit of TER. Service Tax on other than investment and advisory
fees, if any, shall be borne by the scheme within the maximum limit of TER. Service Tax
on entry/exit load, if any, shall be paid out of the load proceeds. Exit load, net of service
tax, if any, shall be credited to the scheme. Service Tax on brokerage and transaction cost
paid for asset purchases, if any, shall be within the limit prescribed under SEBI
Regulations.
Service Tax shall be charged on Deferred Revenue Expenditure (DRE), wherever DRE is
recovered at the time of redemptions/switches, over and above the DRE amount.
C. Investor Education and Awareness :
UTI Mutual Fund (UTI MF) shall annually set apart atleast 2 bps on daily net assets within
the maximum limit of TER for investor education and awareness initiatives. Complete
disclosures shall be made in the half yearly trustee report to SEBI regarding the investor
education and awareness initiatives undertaken.
D. Harmonizing applicability of NAV across schemes :
In respect of purchase of units of mutual fund schemes (other than liquid schemes), the
closing NAV of the day on which the funds are available for utilization shall be applicable
for application amount equal to or more than Rs 2 lakhs. This is subject to receipt of the
application and time stamping prior to cut-off and also the funds are available for utilization
before the cut-off.
In case either the funds or the applications are received on any
subsequent business day, the NAV applicable for the later business day will be applied.
The above rule will be applicable irrespective of the date of debit to investor’s account.
Rs.2 lakhs shall be considered after considering multiple applications received from the
investor under all the schemes/plans on the day and also under all modes of investment
i.e. additional purchase, Systematic Investment Plan (SIP), Systematic Transfer
Investment Plan (STRIP), Switch, etc. The investor will be identified through PAN.
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Addendum
E. Monthly Portfolio Disclosures :
UTI MF shall disclose portfolio (along with ISIN) as on the last day of the month for all its
schemes on UTI MF website on or before the tenth day of the succeeding month in a userfriendly and downloadable format. The format for monthly portfolio disclosure shall be the
same as that of half yearly portfolio disclosures.
UTI MF shall disclose additional
information (such as ratios etc) subject to compliance with the SEBI Advertisement Code.
F. Prudential limits and disclosures on portfolio concentration risk in debt-oriented
mutual fund schemes
UTI MF shall ensure that total exposure of debt schemes in a particular sector (excluding
investments in Bank CDs, CBLO, G-Secs, T-Bills and AAA rated securities issued by
Public Financial Institutions and Public Sector Banks) shall not exceed 30% of the net
assets of the respective schemes.
Existing schemes shall comply with the
aforementioned requirement within a period of one year from the date of issue of the SEBI
circular viz., Sept 13, 2012.
Appropriate disclosures shall be made in the Scheme
Information Document (SID) & Key Information Memorandum (KIM) of debt schemes, viz,
UTI-Bond Fund, UTI-Dynamic Bond Fund, UTI-Unit Scheme for Charitable & Religious
Trusts & Registered Societies, UTI-Fixed Income Interval Fund - Series I, UTI-Fixed
Income Interval Fund - Series II, UTI-Floating Rate Fund – STP, UTI-Gilt Advantage Fund,
UTI-G-Sec Fund Short Term Plan, UTI-Treasury Advantage Fund, UTI-Mahila Unit
Scheme, UTI-MIS-Advantage Plan, UTI-Monthly Income Scheme and UTI-Short Term
Income Fund.
G. Transaction Charges :
Distributors shall have also the option to either opt in or opt out of levying transaction
charge based on type of the product.
H. Disclosure with respect to Half Yearly Financial Results :
UTI MF shall within one month from the close of each half year, (i.e. 31st March and 30th
September), host a soft copy of its unaudited financial results on its website.
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Addendum
UTI MF shall publish an advertisement disclosing the hosting of such financial results on
the website, in atleast one English daily newspaper having nationwide circulation and in a
newspaper having wide circulation published in the language of the region where the Head
Office of UTI MF is situated.
I. Additional Disclosures :
UTI MF shall, in addition to the total commission and expenses paid to distributors, make
additional disclosures regarding distributor-wise gross inflows, net inflows, AAUM and ratio
of AUM to gross inflows on its website on an yearly basis. In case, the data mentioned
above suggests that a distributor has an excessive portfolio turnover ratio, ie., more than
two times the industry average, UTI AMC shall conduct additional due-diligence of such
distributors. UTI MF shall also submit the data to AMFI and the consolidated data in this
regard shall be disclosed on AMFI website.
J. Single Plan Structure for Mutual Fund Schemes :
The names of the Plans/Options where fresh subscriptions will be accepted and also those
Plans/Options which are closed for subscriptions are given below.
Scheme Name
Plan /Option where Fresh Subscriptions will
UTI Liquid Cash Plan
Continue
Institutional Plan
Discontinue
Regular Plan
UTI Money Market Fund
Institutional Plan
Regular Plan
UTI Treasury
Fund
Institutional Plan
Daily Dividend Plan
Weekly Dividend Plan
Monthly Dividend Plan
Quarterly Dividend Plan
Annual Dividend Plan
Bonus Plan
Growth Plan
Institutional Plan
UTI Floating
(STP)
Advantage
Rate
Fund
Regular Plan
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UTI Short
Fund
Addendum
Term Income
UTI Fixed Income Interval
Fund (FIIF) Monthly Interval
Plan I
UTI FIIF Monthly Interval
Plan II
UTI FIIF Quarterly Interval
Plan I
UTI FIIF Quarterly Interval
Plan III
UTI FIIF S-II Quarterly
Interval Plan IV
UTI FIIF S-II Quarterly
Interval Plan V
UTI FIIF S-II Quarterly
Interval Plan VI
UTI FIIF S-II Quarterly
Interval Plan VII
UTI FIIF Half Yearly Interval
Plan I
UTI FIIF Half Yearly Interval
Plan II
UTI FIIF Annual Interval Plan
I
UTI FIIF Annual Interval Plan
II
UTI FIIF Annual Interval Plan
III
UTI FIIF Annual Interval Plan
IV
UTI Fixed Maturity Plan
Quarterly Series
Half Yearly Series
Yearly Series
UTI Gilt Advantage Fund
UTI Banking Sector Fund
UTI Wealth Builder Fund
Series- II
Institutional Option
Regular Option
Regular Plan
Institutional Plan
Regular Plan
Institutional Plan
Growth Plan
Dividend Plan
Regular Plan
Retail Plan
PF Plan
Institutional Plan
Institutional Plan
The existing Investors under the aforesaid Schemes/Plans where Plans/Options are
discontinued shall be allowed to continue in the discontinued Plan/Option till they exit. In
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Addendum
case of Interval schemes, the investors can exit the plan only during the specified
transaction period. Further, existing Systematic Investment Plan (SIP) /Systematic
Transfer Investment Plan (STRIP) – in, Dividend Re-investment (RI) registered prior to
30th September, 2012 under the discontinued Plans/Options may continue upto 31st
October, 2012. Investors having SIP/STRIP-in/RI under any of the Plans in which fresh
inflows are being discontinued are requested to give their fresh option, if any, to any of the
Plans which are open for fresh subscription within 15(fifteen) days from the date of this
Addendum.
In view of the above changes, the Minimum Investment Amount is revised under the
following Schemes.
Scheme & Plan Name
Revised Minimum
Investment Amount
Revised Subsequent
Minimum Additional
Investment Amount
UTI Liquid Cash Plan
Rs. 1,00,000/- (One Lakh) Rs. 10,000/- (Ten Thousand)
and in multiples of Re 1/and in multiples of Re.1/UTI Money Market Fund
Rs.
10,000/(Ten Rs. 10,000/- (Ten Thousand)
Thousand) and in multiples and in multiples of Re.1/of Re.1/UTI Treasury Advantage Rs. 1,00,000/- (One Lakh) Rs. 10,000/- (Ten Thousand)
Fund
and in multiples of Re 1/and in multiples of Re.1/UTI Short Term Income Rs 30,000/and in Rs. 10,000/- (Ten Thousand)
Fund
multiples of Re 1/and in multiples of Re.1/Also, the Exit Load is revised under the following Schemes.
Scheme Name
UTI Floating Rate Fund (STP)
UTI Dynamic Bond Fund
Revised Exit Load with effect from
October 01, 2012
For investments made on or after Oct
01, 2012 – NIL
For investments made on or after Oct
01, 2012
<= 180 days - 0.75%
>180 days
- NIL
Further, ‘Monthly Dividend Sub Option’ under the Regular Option and Institutional Option
of UTI Short Term Income Fund is renamed as ‘Dividend Sub Option’.
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Addendum
All other features, terms and conditions contained in the Statement of Additional Information
(SAI) & SID / Addenda issued hitherto / KIM of the respective Schemes shall remain unchanged.
This addendum is an integral part of the SAI & SID / KIM of the respective Schemes and shall be
read in conjunction with the SAI / SID / KIM.
For UTI Asset Management Company Limited
Sd/Authorised Signatory
In case any further information is required, the nearest UTI Financial Centre may please be contacted.
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