Page 19 - Banking Finance June 2020

MUTUAL FUND

MUTUAL FUND

NEWS
NEWS
NEWS
NEWS
NEWS

Reliance parks Rs. 35,000 UTI Mutual Fund receives "This repayment shows our commit-
ment towards our investors and we will
crore from Jio stake sales entire payment from Zee continue our efforts in the best inter-

in debt mutual funds Learn est of the unit holders of our schemes,"
Reliance Industries Ltd., is plowing at UTI Mutual Fund said it has received the fund house said.
least $4.7 billion dollars into Indian all its dues from Zee Learn Limited af-
debt funds after receiving cash from ter the fund house segregated its ex- Franklin Templeton MF's
stake sales and a rights issue, accord- posure to the company. shut schemes receive Rs
ing to sources.
In a statement, the fund house said it 3,275 cr since closure
The money have been deployed into "has received the entire payment
ultra-short and money-market funds, (along with interest accrued to date) Franklin Templeton Mutual Fund said
and others focused on debt with an due from Zee Learn Limited on July 14, its six shut schemes have received Rs
average of three-to-five year maturi- 2020". 3,275 crore from maturities, pre-pay-
ties, according to fund managers who ments and coupon payments since
asked not to be identified in discussing UTI Mutual Fund, recently segregated closing down in April. The six schemes
investment details. portfolio in respect of debt securities were: Franklin India Ultra Short Bond
of Zee Learn in its two schemes -- UTI Fund, Franklin India Low Duration,
Mukesh Ambani's dealmaking lured
Credit Risk Fund and UTI Medium Term Franklin India Short Term Income Plan,
about $20 billion (around Rs. 1.5 lakh
Fund -- due to the downgrade of such Franklin India Credit Risk Fund, Franklin
crore) of investments from Google to
securities below investment grade. India Dynamic Accrual Fund and
Facebook Inc. into his digital platform Franklin India Income Opportunities
in recent months, raising much antici- The two schemes together had an ex- Fund. "From June 16, 2020 to June 30,
pation over his plans for the money. posure of about Rs. 44 crore to Zee 2020, the schemes have received an
The scale of Reliance's fund flows in Learn.
additional Rs 1,311 crore from matu-
the past weeks has become the talk of The recovery proceeds, in proportion rities, pre-payments and coupon pay-
India's financial markets, with money to investors' unit holdings, will be cred- ments.
managers positioning to get a slice of ited to investors' core banking solution
the pie. The conglomerate, with inter- (CBS) bank account, if registered in the This takes the total amount received
ests spanning petrochemicals, retail since April 24, 2020 to Rs 3,275 crore,"
portfolio, the fund house said the fund house president Sanjay Sapre
and telecom, may have deployed as
much as Rs. 35,000 crore ($4.7 billion) It further said that in the absence of said in a letter to investors. He further
across the nation's debt houses, ac- bank account details, the physical war- said that the amount has been re-
cording to estimates by two of the rants will be dispatched once postal ceived without the ability to eiciently
money managers. services become operational. monetise assets and the schemes will

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