Tata Mutual Fund approves creation of segregated portfolio of DHFL securities

Trustees of Tata Mutual Fund have approved the creation of segregated portfolio of securities of DHFL held by captioned schemes effective from the expiry of mandatory load free exit period of 30 days.

SEBI vide circular dated December 28, 2018 has allowed mutual funds to create segregated portfolio of debt and money market instruments in case of a credit event subject to certain conditions.

Tata Mutual Fund investors have been provided 30 days' load free exit period to redeem from the schemes. The 30 days' load free exit period will expire on 14th June 2019.


Rating agencies have downgraded long term rating of Dewan Housing Finance Limited (DHFL) to default 'D' on 5th June 2019.

See the table below for details of securities which will form part of segregated portfolio.

Scheme	Security	Principal Valuation as on June 06	Interest Accrued as on June 06
TATA TREASURY ADVANTAGE FUND	DHFL (SR.-I) 8.90% NCD (04/06/2021)	10.95	0.00
TATA TREASURY ADVANTAGE FUND	DHFL (SR.-I A) 9.05% NCD (09/09/2019)	6.25	0.45
TATA MEDIUM TERM FUND	DHFL (SR.-I) 8.90% NCD (04/06/2021)	2.5	0.00
TATA CORPORATE BOND FUND	DHFL (SR.-I A) 9.05% NCD (09/09/2019)	7.0	0.47
TATA CORPORATE BOND FUND	DHFL (SR.-I B) 9.10% NCD (09/09/2019)	6.25	0.42

All investors in the captioned schemes as on the day of creation of segregated portfolio shall be allotted equal number of units in the segregated portfolio as held in the main portfolio of the respective schemes.

• Upon recovery of money from the segregated portfolio, whether partial or full, it will be distributed to the investors in proportion to their holding in the segregated portfolio.

• AMC will enable listing of units of segregated portfolio on the recognized stock exchange within 10 working days of creation of segregated portfolio and also enable transfer of such units on receipt of transfer requests.

• AMC will disclose separate NAVs of segregated and main portfolios from the date of creation of segregated portfolio.
• Once the segregated portfolio is created, no subscription and redemption will be allowed in the segregated portfolio of the captioned schemes.