Franklin Templeton Mutual Fund is likely to start the process of e-voting to secure consent of investors for the winding up six of its debt mutual fund schemes this week, said mutual fund distributors familiar with the situation. These mutual fund distributors said they have spoken to the fund house recently.
“The e-vote is to ask investors whether they want Franklin Templeton AMC to continue being at the helm of affairs with the liquidation process of the six debt schemes that were wound up. If investors do not choose Franklin, the AMC will go to Sebi with the possible trustees that might overtake this process. Then the investors would decide which of these third parties would they trust the most,” said a mutual fund distributor who did not want to be named.
Franklin Templeton Mutual Fund shocked conservative investors with its decision to shut six debt schemes on April 23. Many investors were upset as they will not be able to sell their investments that they have made to take care of their short-term needs.
Franklin Templeton has started getting in touch with those investors who haven’t registered their email ids or phone details with the fund house. The emails in this regard would be sent out in a day or two to all the investors of these schemes, said mutual fund distributors.
Mutual fund advisors believe that investors are better off choosing Franklin Templeton as the head of the liquidation process because the AMC knows about the securities and underlying of these schemes better than anyone else. “We also believe that the third party process will drag the liquidation process and investors’ money might get stuck for a longer time,” said a financial planner who didn’t want to be named.
Meanwhile, Franklin Templeton in a notice said:
The unitholders were informed that unitholders whose names appear in the register of unitholders as on close of business hours of April 24, 2020 shall be entitled to vote on the resolution, in connection with the winding up of the following schemes, under regulation 41(1):
• Franklin India Low Duration Fund (No. of Segregated Portfolios – 2)
• Franklin India Ultra Short Bond Fund (No. of Segregated Portfolios – 1)
• Franklin India Short Term Income Plan (No. of Segregated Portfolios – 3)
• Franklin India Credit Risk Fund (No. of Segregated Portfolios – 3)
• Franklin India Dynamic Accrual Fund (No. of Segregated Portfolios – 3)
• Franklin India Income Opportunities Fund (No. of Segregated Portfolios – 2)
In order to record the votes electronically, the Unitholders who have not registered their email id thus far, are required to register their email ids with us at the earliest.