INSUBCONTINENT EXCLUSIVE:
central bank imposed operational curbs, capping withdrawals to prevent a run on the stressed lender.
As per data from Rupeevest, 32 mutual
fund schemes cumulatively hold debt worth Rs 2,848 crore in Yes Bank as of January 2020.
The largest holder, Nippon India Mutual Fund, has
six schemes that cumulatively hold paper worth Rs 1,806 crore
In addition to this, four schemes of Franklin Templeton cumulatively hold paper worth Rs 475 crore, and six schemes of UTI MF hold paper
worth Rs 365 crore.
The largest exposure of Rs 637.8 crore is in Nippon India Equity Hybrid Fund, which accounts for 8.11% of its portfolio,
and that caused the NAV to slip 9.48%, Nippon India Credit Risk Fund, at Rs 540.1 crore with 10.96% of its assets, saw its NAV fall 11.91%,
and Nippon India Strategic Debt Fund, at Rs 436.3 crore accounting for 21.25% of its assets, saw its NAV dip 25.24%.
While Nippon India
Mutual Fund has marked the investments down to zero, others like Franklin Templeton and UTI MF have marked it in line with the guidance from
valuation agencies.
In a note to investors, Nippon India Mutual Fund said it has marked the perpetual bonds of Yes Bank in the schemes to
zero and fresh inflows in the scheme have been limited to Rs 2 lakh per day per scheme per investor, until further notice.
Franklin
guidance from valuation agencies i.e
II bonds, subject to Reserve Bank of India (RBI) approval
However, on the call option date (March 5, 2020), Yes Bank decided to not exercise the call option
Vishal Dhawan, chief financial planner, Plan Ahead Wealth Advisors
He points out that investors should also consider exit loads and tax implications before taking a decision.
UTI Mutual Fund, Nippon India
Mutual Fund and Baroda MF will segregate debt securities of Yes Bank effective from March 6, 2020, following the rating falling below
