Aditya Birla Sun Life MF side-pockets exposure to Essel Group company

The fund house said Adilink's failure to repay was on account of "extension of originally anticipated timelines for the monetisation of road assets"

Aditya Birla Sun Life Mutual Fund (ABSL MF) has created a segregated portfolio — commonly referred to as side-pocketing — for its investment in Essel Group company Adilink Infra & Multitrading which has gone sour. 

Three ABSL MF’s schemes — ABSL Medium Term Fund, ABSL Credit Risk Fund and ABSL Dynamic Bond Fund — had subscribed to Adilink’s debentures worth Rs 793 crore which were due in March 2020. The move to create a side pocket was triggered by Adilink’s failure to repay investors.

“On November 25, 2019, payments from Adilink were due to the minority investor as the minority