Home / Business / Templeton Fund lost $ 3 billion due to debt balancing and trying to withdraw from the country

Templeton Fund lost $ 3 billion due to debt balancing and trying to withdraw from the country

Investment Fund Franklin Templeton one of the largest in the world, declared to have lost US $ 3 billion for his recent investments in emerging countries, mainly in Argentine bonds and confirmed that they will try to withdraw their positions against assets in safer locations.

Templeton was one of the great Wall Street players who chose Argentine debt in recent years. The director of that fund, Michael Hasenstab even held a meeting with his own Mauricio Macri in Quinta de Olivos, at a time when the government had full access to international markets.

As published by the Financial News Agency Bloomberg the Global Fund lost in Templeton, investing in emerging markets ̵

1; mainly in Argentine bonds – US $ S3000 million during the third quarter of this year. The total assets of this investment portfolio went from $ 33,000 million to $ 30,000 in three months.

One of the reasons was the announcement of forced inflation of short-term peso and dollar debts announced at the end of August by the Ministry of Finance. The payment of Letes, Lecap, Lecer and Lelink will be made according to the new schedule in three parts. The corresponding 15% of the amount to be paid will be paid at the corresponding expiry date a 25% three months later and 60% remaining six months after the original date. This only concerns institutional debtors, so funds such as Templeton were affected by the measure.

The Templeton Fund, which has total government debt for $ 100 billion had also bought US government bonds to expect a return in the results of these securities, even though the path was opposite and interest was pending. at minimum levels of several years.

According to an article published by the magazine The Wall Street Journal forced the size of the losses recorded by Templeton the institutional investor to review its portfolio of assets and make the decision to withdraw from countries such as Argentina .

"The Star Fund Manager (citing Hasenstab) built a nearly $ 200 billion government bond franchise for Franklin Templeton Investments that made large and profitable investments in high-risk countries . But that strategy failed in 2019 to invest in it. Argentine peoples, who charged investors for losses, "the US newspaper published.

"Now Hasenstab is moving away from most emerging markets and is preparing a strong position in cash for the mass sales he says will come," continued WSJ .

"Investment strategies that may have worked well over the past decade are not as likely to be effective in the next," said Hasenstab, quoted by Bloomberg . "Investors need to prepare for the challenges ahead by creating portfolios that can provide real diversification against the highly correlated risks found in many asset classes," he continued.

As explained by financial operators consulted by TN.com. Thursday's rebound in the MEP dollar or "share prices" and cash settlement was partly explained by the pressure exerted by institutional investors such as Templeton to dollarize and withdraw. get out of the country. In currency controls, legal persons may not purchase currencies for treasury.

For this reason, the only alternative they have is to access dollars through the purchase or sale of bonds or shares priced higher than the prohibited official market. This Thursday, the price of "counted on liqui" jumped 5% to almost $ 72 while MEP made 4.5% up to $ 69 85 according to the Rava stock exchange.

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