UTI MF takes 25% haircut on exposure to IL&FS' special purpose vehicle

On Tuesday, five of UTI MF's debt schemes (including two fixed maturity plans or FMPs) with sizeable exposure to JSEL, saw 2-6 per cent fall on their NAV

UTI Mutual Fund (MF) on Tuesday took an additional 25 per cent markdown on its exposures to Infrastructure Leasing & Financial Services’ (IL&FS) special purpose vehicle — the Jorabat Shillong Expressway (JSEL) — writing down half of these exposures till date.

“The fall in net asset value of some of our schemes on Tuesday was on account of the additional 25 per cent haircut on the non-convertible debentures (NCDs) of JSEL, currently rated ‘D’, which is in line with the Association of Mutual Funds in India (Amfi) ciruclar dated April 30, 2019, on standard haircuts for sub-investment grade securities,” said a