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Vassal sets off austerity drive

Our Bureau

MUMBAI, July 11

IT is austerity time at the Unit Trust of India (UTI). The mutual fund major has decided to observe austerity measures in day-to-day activities to provide better returns to unitholders and regain their trust.

In his first communication with staff members after the change of guard on July 3, UTI Acting Chairman, Mr K.G. Vassal (in his capacity as executive director-in-charge), has asked all members to observe austerity "in all day-to-day activities by saving o n avoidable expenditure so that better returns could be provided to the unitholders".

In a letter addressed to staff members, Mr Vassal has sought employees' continued dedication "to make UTI the most enviable and preferred mutual fund of India".

He has drawn the attention of fellow employees to the decline in the size of total assets under UTI's management while other players in the industry have grown during the last year. This was partly due to falling markets and partly because of repurchases , redemptions and termination of Rajlaxmi Unit Scheme (RUS-92).

Workable solution: Meanwhile, the employees and trustees are trying to prepare a workable solution for US-64 investors by the end of the week to satisfy both investors as well as the Ministry of Finance.

The board of trustees met today, for the third time in as many days, to discuss the alternatives prepared by the UTI management team. The board also considered proposals by the four-member consultative group of outside experts formed yesterday. "The boar d requested the group members to further deliberate on some of the alternatives, which is being done," UTI stated in a written statement.