Four of Franklin Templeton's schemes exposed to Essel Infraprojects, the infrastructure arm of Essel group, saw their net asset values (NAVs) slip between 0.4 per cent and two per cent on Thursday, after marking down the exposure to the firm's debentures.
According to data from Value Research, Franklin India Low Duration Fund (exposure of 4.1 per cent of scheme assets) saw a two per cent dip in its NAV on Thursday. The Short Term Income Plan and Credit Risk Fund (each with 1.25 per cent exposure) were down 0.76 per cent and 0.77 per cent, respectively. The Dynamic Accrual Fund, which had 0.39 per cent exposure, lost 0.4 per cent.
On Thursday, Brickwork ratings had downgraded the long-term and short-term bank facilities of the company to default grade 'D', citing delay in servicing of bank loans. The rating agency also mentioned that the issuer was not co-operating.
According to a source, the securities held by Franklin Templeton MF have not yet received the same downgrade, but the fund house has taken the markdown as a proactive measure.