PGIM India recovers all dues from Reliance ADAG

PGIM India Mutual Fund (erstwhile DHFL Pramerica Mutual Fund) has recovered its entire exposure to Reliance ADAG, a press release from the fund house said. "It gives us immense pleasure to inform you that we have fully recovered all sums due to us from the Reliance ADAG group yesterday i.e. on 27th of September, 2019 ahead of the scheduled maturity date – October 10, 2019," a communication from the fund house said.

PGIM India MF had exposure to certain subsidiaries of the Reliance ADAG group in some of its fixed income schemes. According to the fund house, these subsidiaries were downgraded to the default grade by the credit rating agency in mid-September, 2019 triggering a mandatory 50 per cent hair cut in their valuation. This had led to a fall in the NAV of some of the PGIM fixed income funds.

The fund house says that the entire exposure to the Reliance ADAG group was ring-fenced and secured against shares of Reliance Nippon Asset Management Limited.


According to the fund house, this receipt has been accounted for in the NAV of the impacted schemes yesterday leading to recovery and restoration of the NAV in all the schemes that held this exposure. "With this recovery, we have no further exposures across any Reliance ADAG Group entities," the fund house said.

"We are pleased that the elaborate collateral and payment mechanism we put in place right at the time of investment in these bonds ensured the investors did not lose any money. We continue to put investors first in our approach and evolve best practices to secure their interest," Ajit Menon, CEO, PGIM India.