The Board of Trustees of UTI Mutual Fund has approved the creation of a segregated portfolio in UTI Credit Risk Fund and UTI Medium Term Fund. With effect from July 7, 2020, the debt securities of Zee Learn Limited described below will be segregated from the respective total portfolios in the captioned schemes.
As of July 6, 2020, the scheme-wise exposure in the debt securities of Zee Learn Limited is given below which will form part of the segregated portfolio in the respective schemes:
UTI - Credit Risk Fund
- Security: 0%(F-1)RNCD ZEELEARN LTD-08/07/2020
- Market Value: Rs 40.77 crore
- % of Net Assets: 9.24
UTI - Medium Term Fund
- Security: 0%(F-1)RNCD ZEELEARN LTD
- Market Value: Rs 3.40 crore
- % of Net Assets: 3.02
The above securities were rated AA(SO) by CARE Ratings Limited on March 12, 2015, on the basis of an unconditional and irrevocable undertaking from Zee Entertainment Enterprises Ltd (rated CARE AA/ A1+ on September 11, 2014) for funding of a Debt Service Reserve Account (“DSRA”) to cover any shortfall in servicing outstanding obligations of the said securities 7 days prior to the due date as per the repayment schedule.
Impact on investors
- Upon recovery of money from Zee Learn Limited in the segregated portfolio, whether partial or in full, the money so recovered will be distributed to investors in proportion to their holdings in the segregated portfolio.
- Existing investors in the above mentioned schemes, as of the day of creation of the segregated portfolio, shall be allotted an equal number of units in the segregated portfolio as those held in the main portfolio. No subscription or redemption will be allowed in the segregated portfolio of the captioned schemes.
- Investors redeeming their units will get redemption proceeds based on the net asset value of the main portfolio and will continue to hold units of the segregated portfolio.
- Investors subscribing to the scheme will be allotted units only in the main portfolio based on its NAV.
- UTI AMC will enable listing of units of the segregated portfolio on a recognized stock exchange within 10 working days of creation of the segregated portfolio and enable the transfer of such units on receipt of transfer requests.
- UTI AMC will disclose the separate NAVs of the segregated and main portfolios from July 07, 2020 (i.e. the date of creation of the segregated portfolio).
- A statement of account indicating the units held by the investors in the segregated portfolio along with the NAV of both the segregated portfolio and the main portfolio as of the day of the credit event shall be communicated to the investors within 5 working days of the creation of the segregated portfolio.
