Page 18 - Banking Finance December 2019

MUTUAL FUND

MUTUAL FUND

NEWS
NEWS
NEWS
NEWS
NEWS

PPFAS mutual fund Aditya Birla SL Mutual Fund likely to segregate 3 debt

crosses Rs 2,700 cr under schemes' portfolios
AUM Portfolios will be segregated by Aditya Birla Sun Life Mutual Fund in three of its
debt mutual fund schemes due to a default in
payment by Adilink Infra and Multilink Trading.
Aditya Birla SL Mutual Fund holds debentures
worth Rs 787 crore in papers of Adlink Infra
and Multilink Trading.
Aditya Birla Sun Life Medium Term Plan has
7.5%, Aditya Birla Sun Life Credit Risk Fund has
3.7%, and Aditya Birla Sun Life Dynamic Bond
PPFAS mutual fund records that it has Fund has 5.6% exposure to Adlink papers in their portfolios.
crossed assets under management
(AUM) of over Rs 2,700 crore, its The mutual fund house in a note said, “On 25th Nov 2019, payments from Adilink
Chairman and CEO Neil Parag Parikh were due to the minority investor as the minority investor had exercised a put
said recently. Parikh said the flagship option available to them. It has come to our knowledge that the Issuer has not
long-term equity fund scheme has an repaid the minority investor today. We have taken this as a credit event and
AUM of Rs 2,300 crore, and invests in propose to create segregated portfolios for the Adilink exposure.”
both domestic and foreign equities. It has been pointed out by the fund house that repayment of the Adilink

"We have two more MF schemes -liq- NCDs is expected to be done through the monetisation the road assets which
uid and tax saver funds. We want to are pledged to it as security. Provided that these are unlisted infrastructure
stick to these three schemes for the assets, the sale process is a little longer drawn due to negotiation and finaliza-
moment," said Parikh. He said the tion of all commercials, documentation as well as authority approvals, the fund
long-term equity fund scheme in- house said.
vests 35 per cent of assets in foreign "There are a few potential investors who are actively evaluating these road
equities like Facebook, Google and assets in parallel. We are looking to realize the best value for the entire portfo-
Amazon, among others. Parikh
lio of road assets (which include toll and annuity assets) and currently, the pro-
added, "Foreign equities provide pro- cess is at different stages with different investors. Base case valuations done
tection from country- specific risks. through reputed third-party vendors indicate that when the monetisation pro-
We have mobilised more than Rs 50 cess is successfully completed for the portfolio, the entire exposure can be taken
crore from the region and it is an out. We are exploring all options to realize dues as soon as possible," the fund
important market for us."
house said.

18 | 2019 | DECEMBER | BANKING FINANCE