InvestorQ : Has Templeton seen a run on its mutual funds after the announcement to shut down six of its bond funds last week?
Archita Jajjoo made post

Has Templeton seen a run on its mutual funds after the announcement to shut down six of its bond funds last week?

Answer
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Rashi Mehra answered.
5 months ago


The 4 days post the shutdown announcement of six schemes clearly shows that the decision has not gone down well with Templeton investors. The AMC has seen massive outflows in the last one week. Templeton’s corporate bond fund and its PSU & Banking fund lost nearly 25% of its AUM in a span of four days. Most of these are corporate and institutional investments and can vanish in a jiffy. As of April end, Templeton India had Rs.34,140 crore as assets under management in debt funds of which 72% were accounted for by the six funds that were wound up. The over dependence on low quality credit bonds had resulted in Templeton endangering a strong fixed income franchise. it is evident that there is more pain to come for credit risk funds overall.