InvestorQ : What are the choices in front of the six funds of Franklin Templeton that were wound up on April 24?
prachi Patwardhan made post

What are the choices in front of the six funds of Franklin Templeton that were wound up on April 24?

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8 months ago
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Actually, the Templeton unit holders do not appear to have much of a choice. Templeton has sent a communication to its unit holders to vote on liquidation of the six schemes that were shut down on April 24. It may be recollected that on 24th April, Franklin Templeton Fund wound up six of its debt scheme due to exposure to illiquid debt. It became clear to the AMC that running an open ended fund with that asset quality and redemption pressure was not feasible forcing Templeton to wind up the schemes. Investors have hardly been given a choice. Investors in the six debt funds of FT are clearly worried. Most investors may end up losing half of their principal. Now Templeton has subtly cautioned that if unit holders do not vote for the liquidation of the scheme, then the exercise may get delayed. So, if they accept the hair-cut it will be a bad loss but if they reject the vote then they will get nothing and it will be worse. That is the Catch-22.

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