INSUBCONTINENT EXCLUSIVE:
Debt funds are being hit by a double whammy
With credit rating downgrades for several companies piling up one after the other, exposure to troubled entities seems to be adding up for a
The exposure as a percentage of the overall fund portfolio is also slowly inching up as the fund corpus itself bleeds owing to high
For instance, Baroda Treasury Advantage has holdings across DHFL, Essel and Yes Bank group entities with a combined exposure of 38.79% of
DHFL Pramerica Short Maturity has holdings in papers of ADAG, DHFL and Yes Bank group entities aggregating to 55% of the fund portfolio
Similarly, Aditya Birla Dynamic Bond and Aditya Birla SL Medium Term Plan have holdings in Essel and ILFS entities totalling 16.7% and
22.01% of their corpus, respectively
While singular instances of rating downgrade in a debt fund do not impact the NAV much owing to diversified holdings, multiple downgrades
have started to put pressure on fund NAVs.
Debt mutual funds' combined exposure, across ILFS, Essel, Ys, ADAG DHFL
SchemeNumber of
troubled houses in portfolioHolding %Market value of holdings (Rs crore)Total corpus (Rs crore)DHFL Pramerica Short
Maturity354.99165300Baroda Treasury Adv338.79210542Tata Corp Bond228.2152184Aditya Birla SL Medium Term222.011,7288,093IDBI Credit
Risk219.351894Aditya Birla SL Dynamic Bond 216.676774,059Reliance Strategic Debt 316.259095,593DHFL Pramerica Credit Risk
312.85102796Reliance Credit Risk 412.601,1719,292UTI Bond212.1382674ADAG figures only pertain to Reliance Commercial Finance Reliance Home
Source: Ace MF; Data compiled by ETIG Database