Franklin Templeton Mutual Fund side pockets its exposure to Vodafone Idea

On 24th January, Franklin Templeton Mutual Fund side pocketed its holdings of Vodafone Idea debt. side pocketing is the creation of a separate portfolio in lieu of troubled debt. Existing investors will benefit from recovery in the bad debt through this separate portfolio while fresh investors will not. The NAV of the schemes will not change since Franklin Templeton MF has already written down the full value of the Vodafone debt. The fund house had previously, on 16th January written down the value of the affected paper completely. It had also imposed a restriction of ₹2 lakh per day per investor into the affected schemes. This restriction has now been lifted, according to a spokesperson from the AMC.

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