The redemption request for this purpose may be submitted at any of Official Points of Acceptance of Transactions (OPAT) of Franklin Templeton Mutual Fund, and the NAV applicable will be based on the day and time the application is received at any of the designated OPAT.Unitholders who do not exercise the exit option on or before 3.00 p.m. on December 24, 2019 would be deemed to have consented to the proposed change.However, the exit option without load will not be available to investments in the said Scheme(s) made on or after November 25, 2019. side pocketing is the creation of a separate portfolio in lieu of troubled debt.

Ltd. (the Trustee to the schemes of Franklin Templeton Mutual Fund), to include provisions related to creation of segregated portfolios in the Scheme Information Document (SID) of respective Schemes,” the fund-house said in an investor communique.Besides Franklin Templeton MF, fund houses like Aditya Birla Sun Life MF, Sundaram Mutual Fund and other fund-houses have also announced changes in the SIDs of many funds providing for side pocketing.

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Investors should carefully look at portfolios before entering such schemes. In case you can’t find any email from our side, please check the spam folder. The fund house has come under criticism on social media for this delayed cutoff date for receipt of side pocketed units.“Vodafone Idea has been written down, but credit risk in debt funds is far from over. Franklin Templeton has become the latest fund house to offer a ‘side pocket’ to investors in its fixed-income schemes hit by ratings downgrade of debt securities issued by crisis-hit Vodafone Idea. said Amol Joshi of Plan Rupee Investment Advisors.Log in to our website to save your bookmarks.

SEBI/HO/IMD/DF2/CIR/P/2018/160 dated December 28, 2018.The term ‘segregated portfolio’ means a portfolio, comprising of debt or money market instruments affected by a credit event, that has been segregated in a mutual fund scheme. Franklin Templeton MF uses side pocketing to segregate Vodafone Idea holdings The fund house uses side pocketing to mitigate risks in six affected schemes. Franklin Templeton MF Side Pockets Exposure to Vodafone Idea. If they cannot do this analysis, they must focus on the process being followed and fund manager expertise – is it sufficiently robust?" downgrade in credit rating by a SEBI registered Credit Rating Agency (CRA), as under:• Downgrade of a debt or money market instrument to ‘below investment grade, orFund-houses usually will not charge investment and advisory fees on the segregated portfolio.Franklin Templeton Mutual Fund proposes to include provisions related to creation of segregated portfolios in the Scheme Information Document (SID) of Franklin India Liquid Fund, Franklin India Overnight Fund, Franklin India Floating Rate Fund, Franklin India Savings Fund and Franklin India Government Securities Fund.Other schemes for the segregated portfolio development include Franklin India Corporate Debt Fund, Franklin India Dynamic Accrual Fund, Franklin India Low Duration Fund, Franklin India Short Term Income Plan, Franklin India Income Opportunities Fund, Franklin India Ultra Short Bond Fund, Franklin India Credit Risk Fund, Franklin India Banking & PSU Debt Fund, Franklin India Equity Hybrid Fund, Franklin India Debt Hybrid Fund, Franklin India Pension Plan and Franklin India Equity Savings Fund.“We have received approval from the Board of Directors of the Franklin Templeton Asset Management (India) Pvt.

Franklin Templeton Mutual Fund includes side-pocketing provisions in 17 schemes . This procedure segregates bad debt and allows investors to exit the rest of the scheme without giving up on the chance of recovery in the bad debt.

The move is a positive for existing investors since they will benefit from any eventual recovery in the bad debt in question. It'll just take a moment.You are now subscribed to our newsletters. Existing investors will benefit from recovery in the bad debt through this separate portfolio while fresh investors will not.

Fresh investors also cannot take advantage of recovery in the bad debt. It had also imposed a restriction of On 16th January, an adverse Supreme Court judgment on telecom dues placed a roughly The lack of ratings action also prevented Franklin Templeton AMC from side pocketing the exposure. Conversely speculators will not now be able to take advantage of recovery. The NAV of the schemes will not change since Franklin Templeton MF has already written down the full value of the Vodafone debt. Franklin Templeton Mutual Fund has proposed to include provisions related to creation of segregated portfolios in 17 schemes, effective December 26, 2019In order to ensure fair treatment to all investors in case of a credit event and to deal with liquidity risk, SEBI has permitted creation of segregated portfolio of debt and money market instruments by mutual funds schemes vide SEBI circular No.

Ltd. (investment manager for schemes of Franklin Templeton Mutual Fund) and Franklin Templeton Trustee Services Pvt. Two more mutual fund houses, Franklin Templeton Mutual Fund and Baroda Mutual Fund, have decided to side-pocket their exposures to Yes Bank bonds following the downgrade of its debt instruments. Tata MF in June 2019 became the first fund-house to actually opt for side pockets in three DHFL-exposed debt schemes.The inclusion of provision to enable creation of segregated portfolio in the aforesaid Scheme(s) constitute change in fundamental attributes of the Scheme(s).

Unitholders who have pledged their units will need to procure a release of their pledge prior to submitting their redemption request.The offering will invest 50% of its assets in Indian equities, 20% in international equities, 15% in commodities; NFO opens on Aug 7 and closes on Aug 21The new scheme will invest in a basket of 12 most liquid banking stocks of Nifty Bank Index, which consist 9 private sector lenders and 3 PSU banksInvesting in section 54EC bonds helps investors save taxes on long-term capital gains from real estate

Franklin Templeton Mutual Fund has decided to segregate the bonds of Vodafone Idea held by its debt schemes, effective January 24, after ratings firms cut the telecom company’s securities below the investment grade.

The trustees of the AMC are supposed to monitor the recovery of proceeds in the side-pocketed bonds.

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side pocketing is the creation of a separate portfolio in lieu of troubled debt.

On January 16, Franklin Templeton had marked down these securities to zero. Team Cafemutual Jan 27, 2020 On 24th January, Franklin Templeton Mutual Fund side pocketed its holdings of Vodafone Idea debt.