Franklin appoints Kotak Mahindra Bank as advisor to assist monetising portfolios of 6 shuttered debt schemes

Kotak Mahindra Bank, through its Debt Capital Markets team, will work closely with the Franklin Templeton Trustees, to assist with all portfolio actions in the six schemes

Kumar Shankar Roy May 20, 2020

Debt fund strategyFranklin Templeton Trustee Services Pvt. Ltd., as advised by SEBI pending unitholder vote, has announced the appointment Kotak Mahindra Bank as an independent advisor to work together with Franklin Templeton Asset Management (the AMC), 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 the six schemes – 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.

Nearly Rs 26,000 crore investor money is stuck in the 6 yield-oriented, managed credit debt schemes. Units of the said funds are no longer available for purchases and redemptions, post cut-off time on April 23, 2020.

Kotak Mahindra Bank, with its deep financial market experience, will act as an agent and provide its independent advice and assistance to the trustees through the entire process. This should help in ensuring an efficient wind-up of the six shuttered schemes, while preserving maximum value for investors, as per Franklin.

Sanjay Sapre, President, Franklin Templeton – India, said, “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.”

Sujata Guhathakurta, President – Debt Capital Markets, Kotak Mahindra Bank Limited, said, “Kotak Mahindra Bank is pleased to take on this assignment and is looking forward to working closely with the Trustees and the AMC to assist them in wind-up of these schemes.”

The expenses of the tie-up will not be charged to the fund, as per a source familiar with the development.

Additional Read: Franklin Templeton sends a mid-month progress update to investors of 6 shuttered debt funds; things are moving


Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. Kumar is a financial journalist, with a functional experience of 15 years. He tracks mutual funds, insurance, pension, PMS, fixed income/debt and alternative investments markets closely. He has worked for The Times of India, The Hindu Business Line, Deccan Chronicle Group, DNA, and Value Research, among others, across different cities in India. He is deeply interested in marrying data insights with actionable opinion. He can be contacted at kumarsroy@rupeeiq.com.

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