JPMorgan schemes' per-unit value drops 10% after split

Unit value of India Treasury Fund declines 7% while the India Short Term Income Fund loses over 13% on Monday

The two trouble-hit schemes of JPMorgan Asset Management have seen their net asset value (NAV) fall by average 10 per cent, after the fund house segregated assets exposed to Amtek Auto debentures.

(NAV is a fund's price per unit. The per-unit value is calculated by dividing the total value of all the units in the portfolio, minus any liabilities, by the number of fund units outstanding.)

The NAV of units of JPMorgan’s Rs 1,712-crore India Treasury Fund declined seven per cent to Rs 17 apiece. The NAV of India Short Term Income Fund, asset size Rs 459 crore, fell 13 per cent to Rs 13 apiece.

The fund house is coming with two NAVs for its two schemes. The other one is of the segregated assets. The NAV of schemes with segregated assets was Rs 10 each, as on Monday.

On Monday, the fund house lifted a one per cent redemption cap on these two schemes. The move had come after the fund house obtained unit holders' approval to separate the troubled assets. Put together, both these schemes allocated Rs 190 crore in Amtek Auto's debt instruments, with a coupon rate of 10.25 per cent.

Sources had pegged redemption requests at Rs 1,000 crore from these two schemes as investors were vary of investing in these schemes.

The schemes had a total asset size of Rs 2,964 crore, when the Amtek Auto crisis broke out late in August. After that, heavy redemptions reduced the size to Rs 2,171 crore.