Franklin Templeton (AIF Cat3)

Funds Managed

FUNDS NAMEASSETS CLASSLICENSE
Franklin India Long Short Equity AIFOpen- ended, Long ShortAIF Cat III
Franklin K2 Long Short Credit Fund (US)Long Short
Franklin K2 Alternatives Strategies Fund (US)
Franklin Real Estate Securities Fund (US)

https://www.franklintempleton.com/investor/investment-expertise/alternative-funds#tab3

About the AMC

Franklin Templeton India was set up in the year 1996 as Templeton Asset Management India Pvt. Ltd. It has remarkably performed under the Mutual Fund industry by the launch of Growth Fund in the year September 1996 and since then their business has seen an upward graph at a steady pace.

They claim to have a competitive advantage by possessing the first-hand understanding of the local culture, companies and economies. It serves in more than 170 countries with 42 research offices, 15 local management teams and 12 global trading offices. This company has around 600 investment professionals in 25 countries to cater to the rigorous needs of its investors via smart global options.

Key Members

  1. Naganath Sundaresan
  • President & CIO of Franklin Templeton Alternative Investments (India).
  • Mr. Vivek Kudva,  MD, EMEA and India of Franklin Templeton Investments said that Mr. Naganath Sunsaresan has been chosen to handle AIFs as he has been acknowledged by the stakeholders of various industries as well as peers for building a robust asset management business.
  • Pursues long- short investment strategy.
  • Optimistic approach
  • He believes that at the time of volatility, investors must invest into absolute return strategies as they have tools for going long/ short in the context of their portfolio. This will generate absolute returns to them.

https://economictimes.indiatimes.com/markets/expert-view/earnings-will-improve-but-watch-the-global-macros-naganath-sundaresan-franklin-templeton-alternative-investments/articleshow/65381226.cms

  1. Roshi Joshi-
  • Vice President at Franklin Templeton
  • Qualification- CFA, ACA and PGDM
  • Previously worked in Goldman Sachs, London, Goldman Sachs, Singapore, Wipro Ltd. and S. R. Batliboi & Co.
  1. Anand Radhakrishnan
  • Qualification- B.Tech, CFA and PGDM from IIM Ahmedabad.
  • Previously worked in Sundaram Asset Management Ltd., SBI Funds Management and Asian Convertible and Income Fund.
  • CIO of Franklin Equity – India and Franklin Templeton Asset Management (India) Pvt Ltd. 
  • He has been in the investment management industry since 1994.
  • He has been managing Franklin India Bluechip Fund, Franklin India Prima Plus, and Franklin India Taxshield, Franklin India Infotech Fund and equity portfolio of all funds that are hybrid.
  1. Pyari Menon
  • MBA from The University of Melbourne and  Bachelor of Technology from IIT Madras.
  • Had worked in Tano Capital, Daiwa Securities, Intellectual Ventures.
  •  Had been Assistant Vice President and is currently assisting portfolio management.

Investment philosophy (firm)

  • Apply disciplined  techniques of risk management tailored to the specific strategies of each team.
  • Use a process that is fundamental, consistent and research-driven.
  • Consider risk at all the levels of the investment process and seeks to recognize, rationalize risk and gain reward out of this opportunity.
  • Usually long-term, strategic approach is considered in investments to survive the highs and lows in the market. 
  • It has provided strong, long term performance of its products.
  • Diversification in the portfolio has helped to reduce the risk. Also their asset base that is diversified by investment objective and sales region, pose as strength in the challenging market condition.

Investment strategy (fund)

  1. Franklin India Long Short Equity AIF
  • Category- Equity, Sectoral Fund- Infrastructure
  • Launched on- 4th Sept /2009
  • Benchmark Index- S&P BSE India Infrastructure Index
  • Fund Style- Large Blend
  • Its net exposure to equity are typically 10% to 50% and 0 or even negative in case of bearish market.
  • Investment strategy-
  1. Min. investment for fresh purchase of the fund- Rs. 5000 and multiples of Rs. 1 thereafter (lumpsum)
  2. Min. investment for additional purchase of the fund- Rs. 1000 and multiples of Rs. 1 thereafter (lumpsum)
  3. Min. investment for SIP of the fund- Rs. 500 and multiples of Rs. 1 thereafter (lumpsum)
  • The Franklin India Long Short Equity AIF aims to attract well informed investors who seek new and niche alternatives to diversify their portfolios away from the traditional assets
  • This is an open ended, long short funds which intends to generate appreciation of the capital over the period of medium to long term through investments into equity, equity related securities and derivatives of the firms that are domiciled in India along with lower volatility of the returns as compared to the stock market.
  • This fund will make use of the combination of technical, fundamental and quantitative analysis in order to determine the long/ short investment strategy.
  • Plans and options offered- 
  1. Growth plan (Regular as well as direct option) 
  2. Dividend option (Regular as well as direct option along with reinvestment/ payout option)
  • There is no entry load but the exit load is 1% when units of the fund are redeemed within an year of allotment.
  • Tax benefits are as follows:
  1. Long term capital gains (LTCG)- 10% (plus cess and surcharges if applicable)
  2. Short term capital gains (STCG)- 15% (plus cess and surcharges if applicable)
  3. Capital gains that are accrued upto January 31, 2018 is exempt from Long Term Capital Gains tax in respect of the units that have been acquired before 31st January 2018 & redeemed on or after 1st April 2018.

Media

  1. Media platform name- Economic Times

Date- March10,2020

Link- https://m.economictimes.com/markets/stocks/news/franklin-alternative-investments-launches-franklin-india-long-short-equity-aif/articleshow/65325938.cms

Topic- Franklin Alternative Investments launches Franklin India Long Short Equity AIF

Under this, the President & CIO of Franklin Templeton Alternative Investments (India), Naganath Sundaresan talked about how AIF market has markably grown in the last two years in India. This has been a result of  HNI investors as well as family offices seeking for new and niche strategies to invest in their portfolios. In order to be able to meet the needs of the sophisticated investors in the times of high volatile market, Mr. Naganath Sundaresan to operate at long/short positions so that this AIF is flexible and well positioned in the market. 

Further, the details mentioned about the fund states that in order to capital appreciation via equity,  equity related securities and derivatives of the firms that are domiciled in India along with lower volatility of the returns as compared to the stock market, the fund uses a combination of technical, fundamental and quantitative analysis in order to determine the long/ short investment strategy.

  1. Media platform name- Paytm Money

Date- April 30, 2020

Link- https://www.paytmmoney.com/mutual-funds/scheme/franklin-build-india-direct-fund-growth/inf090i01jf5

Topic- Franklin Templeton- Franklin Build India Fund

  • Invests into the firms that are directly or indirectly related to the infrastructure activities.
  • This fund focuses on structural themes rather than cyclic themes.
  • Its investments focuses on:
  1. Management quality
  2. Innovation in business
  3. How strong the fundamental of business are
  • It considers its ideal investment horizon to be more than 5 years.
  • The financial goals aimed to achieve via this fund are:
  1. Child Education
  2. Retirement goals
  3. Marriage of the children
  4. Creation of long term wealth
  • Investors with a high risk profile are suggested to invest into this fund who aim to gain through economic growth. They are also advised to possess some knowledge about the infrastructure industry as major funds will be invested here. Also, they must be comfortable with short/ medium term volatility in the market because this fund aims to achieve capital appreciation through the same.
  • Also, investors should have knowledge about macro trends and must take selective bets for high yields.

3. Date- August 31, 2015 

Link- https://www.franklintempletonindia.com/downloadsServlet?docid=hvdho109

Topic- Franklin Templeton- Franklin Build India Fund

4. Media Platform- CNBC TV

Date- August 31, 2015 

Link- https://twitter.com/cnbctv18news/status/1030305464406306817

Mr. Sundaresan Naganath talked majorly about how markets have been moving towards volatility and their effect on various different kinds of funds which is worrying. 

Other details include how his investment strategies change long/ short according to the prevailing and upcoming market conditions. Also, considering some risks, he believes in being optimistic.

Prepared by- Avanti Nagbhidkar

Reviewed by- Taniya Nagpal

Share:

You must be logged in to post a comment.