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Tweet Thread on what just happened to Franklin Templeton Funds - Credit Risk Funds
First - Franklin Templeton today announced the winding down of SIX of its Debt Funds (which had credit risk)
This is effective tomorrow i.e. 24th April 2020
This is an unprecedented move
(1/n)
First - Franklin Templeton today announced the winding down of SIX of its Debt Funds (which had credit risk)
This is effective tomorrow i.e. 24th April 2020
This is an unprecedented move
(1/n)
Which are these Funds?
These Funds are
Franklin Low Duration
Franklin Dynamic Accrual
Franklin Credit Risk Fund
Franklin Short Term Income
Franklin Ultra Short Bond
Franklin Income Opps Fund
All these funds have been wind down with immediate effect
(2/n)
These Funds are
Franklin Low Duration
Franklin Dynamic Accrual
Franklin Credit Risk Fund
Franklin Short Term Income
Franklin Ultra Short Bond
Franklin Income Opps Fund
All these funds have been wind down with immediate effect
(2/n)
What happens to my investments in this wind-down? They will return my money?
Ans: This wind-down is similar to a lock-down
These schemes will not allow any further transactions, no purchases, no redemptions
It's like the entire scheme becomes a segregated portfolio
(3/n)
Ans: This wind-down is similar to a lock-down
These schemes will not allow any further transactions, no purchases, no redemptions
It's like the entire scheme becomes a segregated portfolio
(3/n)
Whoa! What do you mean? Tell me more clearly
These six schemes put together as of date have an AUM of Rs. 28,000 cr. This entire AUM is now stuck as it is. You cannot redeem
What do u mean, I cannot redeem?
Simply put, you cannot withdraw any monies
(4/n)
These six schemes put together as of date have an AUM of Rs. 28,000 cr. This entire AUM is now stuck as it is. You cannot redeem
What do u mean, I cannot redeem?
Simply put, you cannot withdraw any monies
(4/n)
Cmon don't joke, my money is stuck till how long?
Ans: It's not a joke. Here;s the formal notice from Franklin Templeton
https://bit.ly/FTwind
(5/n)
Ans: It's not a joke. Here;s the formal notice from Franklin Templeton
https://bit.ly/FTwind
(5/n)
So u mean, my money is gone? They will never open these schemes
Ans: Yes, the schemes are wound down. They will never open again
It will work like a segregated portfolio i.e. the day they get any interest,, maturity from any of the holdings it will distributed to all
(6/n)
Ans: Yes, the schemes are wound down. They will never open again
It will work like a segregated portfolio i.e. the day they get any interest,, maturity from any of the holdings it will distributed to all
(6/n)
So I will get my money back soon?
Ans: As and when the underlying portfolio instruments mature or the scheme receives the money back (in case interest or defaults etc) they will pay it back to you.
So that's that simply put. Any specific Qs will be happy to answer
(7/n)
Ans: As and when the underlying portfolio instruments mature or the scheme receives the money back (in case interest or defaults etc) they will pay it back to you.
So that's that simply put. Any specific Qs will be happy to answer
(7/n)
