InvestorQ : What is the meaning of Franklin Templeton MF warning the unit holders of huge losses if they don’t vote to wind up the six funds that were shut down?
ishika Banerjee made post

What is the meaning of Franklin Templeton MF warning the unit holders of huge losses if they don’t vote to wind up the six funds that were shut down?

Answer
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5 months ago
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Clearly, Franklin Fund is trying to play like a Smart Alec by putting the fear of urgency into the minds of the unit holders. The fact of the matter is that Templeton does not want to disclose the extent of damage to its portfolio as a result of its rash decisions. Instead it is trying to put the onus of the decision on the unit holders, which is outright ridiculous.

Franklin Templeton has the cheek to warn unit holders that if the unit holders spurned the plan to wind up the six beleaguered funds, then it could result in huge losses on the $4 billion locked up in the six funds. This is almost like holding the desperate investors in the fund to ransom without taking any accountability for their decisions.

It may be recollected that the Supreme Court of India had asked Franklin Templeton to seek unit holder approval before winding up the fund. There has been a lot of time wasted in semantics and after almost 8 months the only thing unit holders know is that there is a huge hole in the six funds, which Templeton is trying to protect like a state secret.

The electronic voting will take place between December 26 and December 28 and a simple majority will be sufficient for the decision. However, people need to look through this game. The truth is that even if the winding up is approved, unit holders will take a large haircut on their investments due to some really awful investments made by Templeton fund managers.

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