“These valuations only reflect the realisable value and do not indicate any reduction or write-off of the amount repayable by these companies”. You can follow here:Live Tweet blog of the Franklin Templeton callSanjay Sapre is giving a summary- Six funds wound down- Voluntary wind down- This was only way and the most difficult choice- COVID has led to significant reduced liquidity in debt markets- and also higher redemptions(1/n)As the schemes have been wound up, investors in these schemes will not be able to withdraw their money, immediately or on their own. Use of the CNN name and/or logo on or as part of NEWS18.com does not derogate from the intellectual property rights of Cable News Network in respect of them. Franklin Templeton Mutual Fund announced that it will be closing six of its debt funds from April 23, 2020, freezing over Rs 25,000 crore worth of investor’s money.
"The decision has been taken in order to protect value for investors via a managed sale of the portfolio," the Fund said in a statement.The decision was limited to funds which have "material direct exposure to the higher yielding, lower-rated credit securities in India that have been most impacted by the ongoing liquidity crisis in the market," the statement said.The funds included Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund and Franklin India Income Opportunities Fund, it said.Manoj Nagpal, the editor of MoneyControl Pro, is livetweeting about the implications of the Franlkin Templeton's call. Six Fund of Funds of Franklin Templeton also impacted by debt funds shut down Dhuraivel Gunasekaran | Updated on April 26, 2020 Published on April 25, 2020 1/2 While the latter was able to meet its dues on Thursday, the other two missed the payments. Of the money it receives, Sapre has assured that the fund house will keep paying all investors, big or small, proportionately and in instalments. Of the six schemes that are under wind-up, four schemes are exposed to NDIL, FCIL and Rivaaz Trade Ventures (RTVPL). Business Standard is happy to inform you of the launch of "Business Standard Premium Services"As a premium subscriber you get an across device unfettered access to a range of services which include:Welcome to the premium services of Business Standard brought to you courtesy FIS. Franklin Templeton shuts down six credit risk strategy debt funds; All investors need to know. This was after the non-convertible debentures (NCDs) of the firms were downgraded to BB+ by Brickwork Ratings on Wednesday. The downgrade was on account of deteriorating credit profile of the “credit enhancer” Future Retail (FRL), on which these
( For Credit Risk Fund, the NAV was down 2.31 per cent. This means that FIIOF’s investors will have to wait for close to three years and 80 days to get all their money back.“Since investors in some of these funds had invested for the long term, it shouldn’t matter if they have to wait to get their entire proceeds back because it will take some time to liquidate all the underlying holdings,” Sapre said.He hopes the pandemic would come under control soon and the markets revive. © Copyright Network18 Media and Investments Ltd 2020. Its investors will therefore have to wait around a year and 73 days to get all their money back from this scheme.Similarly, Franklin India Income Opportunities Fund’s Macaulay duration as of March-end was 3.22 years. Your Templeton debt fund will pay back your money, but as and when it gets to sell its portfolio and realise the money.Array New Delhi: Franklin Templeton Mutual Fund on Thursday announced it would wind up six yield-oriented, managed credit funds in India, effective April 23, citing severe market dislocation and illiquidity caused by the coronavirus. Sapre said that these segregated portfolios that were created last year-and-a-half back for some of the schemes’ illiquid underlying securities, where companies had defaulted, will continue to try and recover these investments too.
FT MF schemes have already taken 25 per cent mark down on exposure to RTVPL in-line with valuation matrix. CNN name, logo and all associated elements ® and © 2020 Cable News Network LP, LLLP. Franklin India Income Opportunities saw its NAV dip by 4.85 per cent on Friday. Meanwhile, the segregated portfolios of these schemes will continue independently. On 9 March, Franklin Templeton Mutual Fund marked down its exposure to various Reliance ADAG and Essel Group companies by around 90%. ) In such a scenario, he added that there is a possibility of early liquidation of portfolios, in which case investors may get their monies sooner.In the meantime, Templeton will keep trying to liquidate its portfolios as much as it can.
CNN and the CNN logo are registered marks of Cable News Network, LP LLLP, displayed with permission. Franklin Templeton, the country’s eighth largest mutual fund house, has spooked debt fund investors, as it is winding up six of its fixed-income schemes. In short, you will have to wait for the fund house to keep coming to you with bits and pieces of your redemption proceeds, periodically. In a note, FT MF said, “Due to default in payment, the securities of FICL and NDIL will be valued at zero basis Amfi standard hair cut matrix and interest accrued and due will be fully provided”.
) “As and when we get back our money from these companies, the segregated portfolios will pay investors who were eligible to receive the units,” he stated.Since Templeton has stopped subscriptions and redemptions, your systematic investment plans (SIP) will stop automatically.If you had enrolled for systematic transfer plans (STP; a facility wherein you invest a lumpsum in a debt fund, preferably a low risk one, before you transfer equal amounts once a week or month in an equity fund of your choice), your money is stuck. Four debt schemes of Franklin Templeton Mutual Fund (MF) that are under wind-up saw 1.3 per cent-4.85 per cent dip in their net asset values (NAVs) following payment defaults by two Future group firms -- Nufutre Digital (NDIL) and Future Ideas (FCIL).. Of the six schemes that are under wind-up, four schemes are exposed to NDIL, FCIL and Rivaaz Trade Ventures (RTVPL). A Franklin Templeton AMC spokesman said that …