India’s UTI Pension Fund is returning to bonds after a year of heavy equity buying, Umesh Kumar Gupta, chief executive officer of the 4.13 trillion rupee (US$45 billion) pension fund, says in an interview with Bloomberg.
According to Gupta, the pension fund, India’s third largest, plans to allocate 40%-50% of fresh investments to government bonds in its next financial year which begins on April 1.
“UTI Pension Fund will allocate about 20%-25% of its new investments to equities next fiscal year, with the rest going into corporate debt,” he is quoted as saying in the interview published on March 18.
Data compiled by the news agency and cited in the report shows that around three-quarters of the fund’s investments went into equities and one-fourth was allocated to corporate bonds in the current financial year.
Gupta says asset allocation will “return to normalcy” after regulatory changes allowed for higher investments in stocks.
UTI Pension Fund is wholly-owned by UTI Asset Management Co.
Spokespersons for the pension fund did not immediately respond to questions from Asia Asset Management.
