JPMorgan Mutual Fund has cashed out of the stressed investment it held in the ‘segregated assets’ of J.P. Morgan India Short Term Income Fund and JPMorgan India Treasury Fund, said a notice issued by the fund house.
After the troubled auto maker Amtek’s debt paper turned illiquid, JPMorgan Short Term Income Fund and JPMorgan India Treasury Fund restricted redemptions from August 28. The redemptions in these two schemes were capped at 1% of the total number of units outstanding on any business day.
Subsequently, on September 28, the fund house created segregated assets of the stressed asset.
The AMC has sold the segregated assset in full on December 5 and this has resulted in realization of the segregated asset thereby providing liquidity, the notice said.
Investors in the segregated assets can switch out or redeem from today. The redemption proceeds will be paid to investors on a T+1 basis.
Market participants say that both these funds had around Rs. 150 crore exposure to Amtek.
