UTI Mutual Fund (MF) and Nippon India MF acquired half fee from Altico Capital on October 8.
“The implementation of decision plan of Altico Capital is in course of. In the meantime, the excess quantity mendacity in firm’s stability sheet has been distributed to all debt buyers proportionately,” Nippon India MF stated in a be aware to buyers.
The fund home had side-pocketed debt publicity to the troubled non-bank monetary firm in its ultra-short period fund on September 25, 2019, following its downgrade to below-investment grade.
UTI MF acquired Rs 12.three crore as partial fee for its side-pocketed publicity in its credit score danger fund, in addition to for its publicity in a few of its close-end mounted time period plans.
In-line with regulatory pointers, UTI MF had marked down debt exposures to Altico Capital by 75 p.c in September final yr.
In case of UTI – Mounted Time period Revenue Fund – Sequence XXVII – Plan II (1161 Days) and UTI Credit score Threat Fund, the restoration proceeds might be distributed to buyers in proportion to buyers’ unit holdings, as exposures in these schemes have been held in side-pockets (segregated portfolios created to carry confused exposures).
Within the case of different mounted time period plans of UTI MF, the funds will get credited to the schemes and this may replicate of their web asset values.
First Printed on Oct 9, 2020 09:56 pm