Franklin Templeton appoints Kotak Mahindra Bank to assist in monetising assets of 6 wind-up schemes

Franklin Templeton Trustee Services has appointed Kotak Mahindra Bank to work together with Franklin Templeton Asset Management (India) to assist the trustees in monetising portfolios of the six schemes that are being wound up

Press Trust of India May 20, 2020 16:12:26 IST
Franklin Templeton appoints Kotak Mahindra Bank to assist in monetising assets of 6 wind-up schemes

New Delhi: Franklin Templeton Trustee Services has appointed Kotak Mahindra Bank to work together with Franklin Templeton Asset Management (India) to assist the trustees in monetising portfolios of the six schemes that are being wound up.

Kotak Mahindra Bank, through its debt capital markets team, will work closely with the Franklin Templeton Trustees, to assist with all portfolio actions in these six schemes that are being wound up, Franklin Templeton Mutual Fund said in a statement.

Trustees of Franklin Templeton MF said that Kotak Mahindra Bank, a highly reputed firm with strong corporate governance practices and deep financial market experience, will, wherever required, act as their agent and provide its independent advice and assistance to the trustees through the entire process.

The appointment will provide the trustees with the added experience and ability to monetise assets at the earliest possible time.

Franklin Templeton appoints Kotak Mahindra Bank to assist in monetising assets of 6 windup schemes

Representational image. News18

"Franklin Templeton is committed to ensuring an orderly and equitable exit for all investors at the earliest possible time, and we will partner with the board of trustees and Kotak Mahindra Bank to ensure an efficient wind-up of these schemes, while preserving maximum value for our investors," said Sanjay Sapre, president of Franklin Templeton India.

Sujata Guhathakurta, president (debt capital markets) at Kotak Mahindra Bank, said the bank is looking forward to working closely with the trustees and the asset management company (AMC) to assist them in wind-up of these schemes.

Last month, the fund house had closed six of its debt funds, citing redemption pressures and lack of liquidity in the bond markets.

These schemes, together having an estimate amount of over Rs 25,000 crore assets under management, were Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund, and Franklin India Income Opportunities Fund.

Updated Date:

also read

Franklin Templeton MF shuts six schemes: 'Do not get side-tracked by isolated event, focus on investment goals', says AMFI to investors
Business

Franklin Templeton MF shuts six schemes: 'Do not get side-tracked by isolated event, focus on investment goals', says AMFI to investors

The statement by the industry body came after Franklin Templeton Mutual Fund voluntarily decided to wind up its six debt schemes citing redemption pressure and lack of liquidity in bond markets due to coronavirus pandemic.

Indians switch to bank deposits as concerns grow over debt funds; Templeton's announcement sees heavy inflows into bank schemes
Business

Indians switch to bank deposits as concerns grow over debt funds; Templeton's announcement sees heavy inflows into bank schemes

As spooked investors called for a government intervention and debt mutual funds saw record withdrawals, traditional bank deposits have gained.

Budget proposals on DDT, personal tax not to impact MF industry: Franklin Templeton Mutual Fund
Business

Budget proposals on DDT, personal tax not to impact MF industry: Franklin Templeton Mutual Fund

The proposed changes in Dividend Distribution Tax (DDT) and the new income tax system announced in the budget will not have any adverse impact on the mutual fund industry that showed resilience and maintained robust growth amid economic headwinds, a senior mutual fund official said