InvestorQ : What is the update on the Franklin Templeton debt funds that shut in April this year?
Niti Shenoi made post

What is the update on the Franklin Templeton debt funds that shut in April this year?

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ishika Banerjee answered.
2 months ago
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The progress has not only been disappointing but it has actually been disconcerting looking at the way Templeton has adopted a very casual approach to nearly Rs.25,000 crore of investor money that is locked up in dud investments or near dud investments.

According to latest disclosures by Franklin Templeton Mutual Fund, the 6 schemes which were summarily shut down in late April due to a combination of awful investments and bad market conditions, had received Rs.8,302 crore in total from maturities, prepayments and coupon payments.

Now, that is less than one-third of the stated value of Rs.26,000 crore at the time of the fund closure. Whether, the value reduction will end up being the haircut for the investors is not clear but that is what it looks like at this point of time.

There is something worse than that and that is what Templeton is not silent about. After loan repayments on the funds, just about Rs.5116 crore would be left so the haircut could be closer to 75%. It is time for Templeton to come out and tell the truth to unit holders.

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