#FTSaga Update:

One more tranche of 3205 crs repaid on Jun 4'21

I had written an article on 24th April 20, day after @FTIIndia winding up schemes

In the end, I had mentioned a few points on what to expect going forward. Let me take each point and see where we stand today.
Link of my April 2020 article for ready reference:

Point No 1:
This is not delay or default and no haircuts so far

FM was asking time for reversal of Risk Aversion & markets to stabilise & normalise

Proven correct
Point No: 2

This is to give better value to Investors at cost of delayed liquidity

Again proven correct from almost 71% collections so far at far better values than on the date of winding up
Point No 3:
NAVs will be announced on daily basis;funds will accrue income,capital gains/loss based on value of underlying securities.Exactly as they would have if the schemes were open for purchase or redemption

Proven correct. NAVs declared daily & interest accrued daily
Point No 4:
FT may sell these securities at appropriate value (maybe at profits as well) if markets normalize and risk appetite of banks is restored

Proven correct. Securities sold at much better valuations than prevalent on 23rd Apr 2020. Visible from returns in these schemes
Point No 5:
Investors should expect better realization of underlying securities v/s if they are forced to sell based on redemption pressures currently.

Proven correct. By giving time to FM, for markets to stabilise, interest rates having softened, huge upside in realizations
At this pace of monetizing securities of wound up schemes, I personally believe that Investors will get their full money much sooner than their expectations.

Just some more patience required and hope for that saying:

Finally, Investors should be happy with the outcome so far:

1. Current NAVs of all schemes are higher than NAVs as on 23 Apr 2020
2. Reflected in huge positive returns generated by these schemes so far
3. Some segregated doubtful portfolios have been realised & repaid back
Just goes to prove that if they were not confronted with frivolous legal cases and wasted precious time in litigation, investors could have received their funds back sooner than later

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More from @IamMisterBond

3 Jun
Investors have short memories and wish to dissect market phases based on what suits their sensibilities.

Current hot topic of discussions on Social Media:
How Mid and Small Caps have delivered stupendous returns since March 2020
What they have conveniently forgotten is their recent past experience of investing in Mid & Small Caps from Jan 18 to Dec 19 and till Mar 20

Above table shows entire journey of same Indices over different time periods vs 2 popular DAAF schemes and vs Smart Solution of MisterBond
Many have questioned our exit from Equity in July 2020(after entries in March 2020):
As @morganhousel has mentioned in his book:
It is not being conservative but creating Margin of Safety. This raises odds of success at a given level of risk by raising your chance of survival
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30 May
MisterBond's Rankings as on May 30'2021: From 01-04-15 to 30-05-21

Rankings of only those which were in existence from 01-04-15

Those wishing to subscribe can make an advance payment. Subscription will open from June 15 after making balance payment:
3 Types of Rankings:
1) IHR: Investor High Returns - Higher returns in higher return bands
2) IER: Investor Experience Returns - IHR adjusted for Volatility
3) % of observations of each scheme beating Industry Average
Large Cap Scheme Rankings:
Industry Avg: 8.50%
Number of Observations Completing 5 years: 284
Based on 5 year rolling returns
Read 8 tweets
18 Jan
Great news for #Investors. Verdict is out in #FranklinTempleton saga:

YES for #Winding Up all 6 schemes.

Now Goal Post should change and focus on giving mandate to @FTIIndia for liquidating assets. Here is my Thread on this subject:
Good news for #Investors of #franklintempleton :

-Total Cash Collections of all 6 schemes Rs.13789 crs +

- 5 out of 6 schemes cash positive

- only 6% of AUM left as borrowings in Income Ops
All this without any active intervention/selling/monetizing.

Imagine implications to positive liquidity creation when Fund Manager is allowed to actively Liquidate/Sell securities
Read 8 tweets
7 Jan
People are going Ga Ga on Markets crossing 14000 NIFTY. My take on this:

1. Most Retail Investors had exited in March 2020 crash
2. They waited for further correction to enter - that never happened
3. Most have been only waiting on the sidelines without participating
From July 2017 to Dec 2020,

NIFTY 50 posted + 11.50%
NIFTY Midcap has just managed to break even and come into +4% plus &
NIFTY Small Cap still not recovered full loss ( -1.50% )
Which just goes to show that those under Buy & Hold are only recouping their losses and have not managed to participate fully in post March 2020 rally.
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6 Jan
Khaas Baat with MisterBond in conversation with Padma Bhushan @Abhinav_Bindra. One of the most inspiring stories of the only Indian to have won an Olympic Gold Medal:

Episode 1:

Early Days - a Reluctant Athlete


Thread of all the episodes below
Episode 2:

Role of his coaches. After shooting best Olympic score in Qualifying Round a lose tile responsible for 8th position in the Final Round in 2004

Episode 3:

Concentrate on Process rather than Outcome. Control the Controllables. Convert long term to short term Goals to adapt to changing environment

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5 Jan
Very few seem to be following qualitative analysis & more follow Quantitative analysis

What forms part of qualitative analysis?

To know more: join me on Thursday, January 7'2021 at 5 p.m.

Meeting ID: 841 5000 6619
Passcode: 920511
Qualitative analysis should include:
1. FM track record
2. Sector/Stock selection based on different Business Cycles
3. Scheme to FM ratio
4. Turnover ratio
5. Frequency of NFOs
Very important to identify macros for different Business Cycles that can be divided into:

1. Growth
2. Recession
3. Slump
4. Recovery

All need to be identified based on different characteristics of each cycle
Read 5 tweets

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