What’s the news?
Franklin Templeton seeks unit holders nod to wind up the scheme
What does this mean?
Franklin Templeton Mutual Fund has sought the consent of the unitholders for the orderly winding up of the six fixed income schemes. The unitholders would have to take a call on whether to give consent to the winding-up decision or withholding it, which would allow the schemes to reopen for purchase and redemption. The move comes after the Supreme Court issued an interim order allowing the fund house to ask for unitholders consent to wind up the schemes.
The meeting will be done through electronic mode. The fund house has said that voting will begin on December 26 at 9 am and go on till December 28 at 6 pm. There will also be a unitholders’ meeting with the trustees on December 29 from 4:30 pm to 5:30 pm online, where unitholders will get a chance to talk to the fund’s trustees. Unitholders will also be allowed to vote during this meeting.
Earlier, on 23 April 2020, Franklin Templeton had announced shutting down six debt fund schemes due to poor and illiquid investments amid the coronavirus crisis, leaving lakhs of investors in a lurch.
The total assets under management of the six schemes were over Rs 25,000 crore, spread across 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.
How does this affect your wealth?
Scripbox has not recommended any Franklin Templeton Debt funds in the past. The customers who have invested in the aforementioned Franklin Templeton debt funds will do well to participate in the Voting process.