Franklin Templeton mutual fund (MF) has received Rs 13.98 billion from Vodafone Idea Limited (Vi) in repayment for its investment in debt instruments, which will be distributed among investors in the segregated portfolios. This sum will be distributed to unitholders in proportion to their holdings in the segregated portfolio’s plans.
The five segregated portfolios include Franklin India low duration, Franklin India short-term income plan, Franklin India credit risk, Franklin India dynamic accrual, and Franklin India income opportunities fund. These schemes had made investments in Vi.
According to the fund house, the record date for units held in dematerialised (DEMAT) mode is September 8, 2023.
Franklin Templeton MF side-pocketed its exposure to the telecom service provider, and various securities issued by Vi in the schemes were segregated from the main portfolio in January 2020. The creation of segregated portfolios is a strategy for separating distressed, illiquid, and difficult-to-value assets from other more liquid assets in a portfolio.