Franklin Templeton MF also said that their commitment to India remains steadfast as they have been early as patient investors in India.
Franklin Templeton Mutual Fund, which closed its six debt schemes last week, clarified to investors that the fund hosue would return money to investors at the earliest. The fund house tried to calm the nerves of investors by saying that their endeavor was to return money well before the maturities of the underlying securities in those six debt schemes.
In a letter to the investors on Monday, Sanjay Sapre-President of Franklin Templeton Asset Management said that the schemes would receive regular coupon payments and maturities. “In addition, the schemes will explore all opportunities to monetize the underlying assets in the portfolio, without resorting to any distress sales, such that it can return investor monies at the earliest possible time.” Franklin Templeton also said that as the schemes liquidate portfolio holdings subject to market conditions, receive coupon payments and scheduled maturities, the Trustees will start to return monies to investors at the earliest.
The fund house assured the investors that other fixed income schemes, which were open for subscription and redemption, primarily invest in highly liquid securities such as Government Securities, “AAA” rated bonds or other cash and cash equivalents. “These portfolios have the necessary ability to generate liquidity in order to meet redemptions. We have already generated a significant amount of liquidity in these portfolios to meet any redemption requests we may receive,” added Sapre.
Franklin Templeton MF also said that their commitment to India remains steadfast as they have been early as patient investors in India. “Our equity schemes remain unaffected and continue to be managed by our experienced and tenured team based in Chennai in line with their investment mandate and fund management philosophy,” added Sapre.