Net Asset Values

Net Asset Values of 5 schemes of Franklin MF dropped

Net Asset Values of 5 schemes of Franklin MF dropped

Mumbai: To begin with, the net asset values (NAV) of five fixed income schemes of Franklin Templeton Mutual Fund dropped up to 3.4%. So then, on March 9, the fund house further marked down the debt securities of Anil Dhirubhai Ambani (ADA). And also, Essel Infraprojects in its portfolio. 

Besides, the schemes affected stood as follows: 

  • FISTIP (Franklin India Short Term Income Plan) 
  • FIDAF (Franklin India Dynamic Accrual Fund) 
  • FILDF  (Franklin India Low Duration Fund) 
  • FIIOF (Franklin India Income Opportunities Fund) 
  • FICRF (Franklin India Credit Risk Fund) 

Hence, due to this markdown, the NAVs of these schemes dropped between 0.41% and 3.37%.

However, on Feb 24, the NCDs of the ADA Group remained valued on a cumulative haircut of 72.99%. Also, on March 9, the fund house has marked down the security by 95% of Face Value (FV) on a cumulative basis. Moreover, in the case of Essel Infrastructure Ltd. (EIL), earlier on Dec5, the NCDs stood valued based on a 50% haircut. Despite this, on March 9, they remained valued again and an additional haircut of 35% stood taken. However, the cumulative haircut factored in the value of EIL and stands at 85% of FV on a cumulative basis. 

Besides, the fund house stated that the global stock markets have dropped over the last few days. This stood due to the economic effects of the coronavirus outbreak. Furthermore, it would take longer than expected time to monetize assets that have increased dependency. Hence, due to all these factors, they have marked down NCDs of Essel Infraprojects Lltd., Reliance Big Pvt. Ltd. And also, Reliance Infrastructure Consulting & Engineering Pvt. Ltd. to reflect the same at fair value. 

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