Franklin Resources Inc. is one of the greatest and most respected international fund houses with a presence in India. The case emphasizes the structure, investment philosophy and procedure of its fund management team in India. The case presents the specific problem of fund managers holding substantial sums of money during market downturns. There's one school of thought that attributes better risk and lower volatility-adjusted yields with high cash holdings.
The other school of thought believes this strategy goes against the philosophy of investment management. A fund should be nearly completely invested or completely invested. The chief investment officer at Franklin Templeton India is of the 2nd school of thought and is confronted with the challenge of convincing a team of managers and young analysts of its own soundness. He requests them to analyze performance during periods of market declines as a way to arrive at a decision and presents a set of information to this team.
PUBLICATION DATE: March 14, 2013 PRODUCT #: W12524-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
Related Case Solutions & Analyses:
Note on Valuation of Venture Capital Deals
Ratios Tell A Story 2007
Gentera: Beyond Microcredit
Tenet Healthcare (THC)
Abbington Youth Center
Harbor City Community Center
Ornge: Improving Service Levels
Caterpillar, Inc. (A)
Management Control Systems Module 3: Using Information for Performance Measurement and Control
Talbros Automotive Components Limited: Relative Valuation
