Franklin Templeton announces tax-free dividend in FIPP

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Franklin Templeton Investments (India), one of the largest* fund houses in the country has announced a tax-free dividend of Rs.6.00 per unit (Face Value of Rs.10), in its fund - Franklin India Prima Plus (FIPP), which invests in a diversified portfolio of wealth creating companies that generate a return on capital higher than their cost of capital. All investors registered in the Dividend Plan as on November 15, 2006 will receive this tax-free dividend. (Pursuant to payment of dividend, the NAV of the fund would fall to the extent of payout).

 

Speaking about the dividend, Vivek Kudva, President, Franklin Templeton Investments (India) said, "The judicious stock selection approach along with the buoyant markets has resulted in the fund turning in a good performance (68.1% growth over the last one year - Past performance may or may not be sustained in the future), leading to this dividend. The fund has declared eight dividends in the last seven years. Launched in 1994, Prima Plus is one of the oldest equity funds in the country and has delivered consistent performance through the ups and downs of the stocks markets. The fund's performance stands testimony to the fact that a well-managed growth fund can reward investors with a long term horizon, irrespective of the short term movements in the equity markets. Franklin Templeton has 3 equity funds that have a track record of more than 12 years in its stable, a reflection of the depth and experience of our investment team"

 

Mr. Sukumar Rajah, Director & Chief Investment Officer - Equities and Principal Portfolio Manager of Franklin India Prima Plus said, "We believe that regardless of the state of the markets, a disciplined approach is a must for successful investing. During all markets conditions, the key parameters that drive our investment decisions are fundamentals and valuations. Prima Plus invests in wealth creating companies whose competitive advantage will translate into superior return on capital. We follow a bottom up approach to stock picking and choose the best companies irrespective of their sector classification. Our research focuses not only on the track record of the company, but also on their future strategies and their ability to continue to generate wealth on a sustained basis in a competitive business environment."

 

The record date for the dividend is November 15, 2006 and any purchases on or before this date will be eligible for the dividend. There will be a one-day book closure for the growth and dividend plans on November 16, 2006 and will reopen for fresh purchases and redemptions on November 17, 2006. Under the dividend reinvestment plan, the dividend declared will be reinvested at the NAV of November 17, 2006 and unit holders will be allotted additional units for the dividend amount.

 

Sourced From: Perfect Relations Limited