Franklin side pockets holding Vodafone bonds shoot up 20% as interest flows in

New Delhi: More good news for investors in the closed debt schemes of Franklin Templeton Mutual Fund. The segregated portfolios holding Vodafone Idea NCDs have received interest from the telecom company, pushing up their NAVs by almost 20% on Friday. Side pockets of five schemes hold Vodafone Idea NCDs worth about Rs 1,200 crore. These bonds are maturing in September 2023, but give out the annual accrued interest.

Till six months ago, these segregated portfolios were valued at zero as per Sebi rules. But in March, the values were revised from zero to 35% following “a series of positive developments around Vodafone Idea Ltd”. The segregated portfolios were assigned NAVs on 2 March, which in turn showed the value in individual portfolios of investors.