Here is a copy of a message I sent to Franlin Templeton. I would encourage others on this Board to do the same.
"First let me say I have a consideral investment in your FKINX fund and have for quite some time. This Fund is in my Schwab account. You have no idea how much of my IRA I have lost in this fund in the last couple of years.
I respectfully request you advise me of what, if anything, you plan to do to increase the NAV of this fund. At the very least I think you should consider making a change in the Funds Manager as it is obvious things are not working out too well for him.
I understand that when I purchased this Fund there was a chance it could go down in value. But at some point it gets ridiculous. The fund wasn't even performing well during the last Bull market.
I respectfully request you advise me, by email, a repsonse to this e-mail. If not I will have no choice but to take my loss and move on".
Also note that during the brutal market crash of 2000-2002, this fund gained about 21% in 2000, 0.65% in 2001, and lost about 1% in 2002. So far this year only, this fund lost about 31%!!! This is suppose to be a conservative fund. The more aggressive funds lost as much or even less than this fund! Something is seriously wrong with the management of this fund.
get real... Franklin Templeton could care less if you sell your shares... they got you on the way in and charged you fees when you held the shares... This fund has been going for 50 plus years and made them billions ... check out the front page of frankintempleton.com... the are bullish on the fund...
If you are going to take the time to send a letter its not a good idea to say " i have no idea how much I have lost".... If you did your homework you would know. You would also know that the fund has had defaults and has had awful years before and always come back... see 2002 and the 20% returns in 03'..
Don't yell at them. You or your broker bought the fund.. buyer beware.
Yes, this fund as all funds have had down years. The period of time you mentioned of 2002 when Franklin experienced a loss of -1.1% is minimal compared to a ytd loss of -35%. The closest comparsion was in 1969 with a loss of -16.84%. I think there is no relistic comparsion that can be applied to this fund looking at past performance and future performance going forward. Yes, there have been redemptions in the past in this fund but I believe within this economic climate redemptions have never been higher. My guess on this fund is that the managers were completely caught off guard last year as to the magnitude to the coming crisis. They mishandled their bond positions with very low credit quality holdings and compounded the problem investing into stock positions that were primed to collaspe in this type of environment as investment bank exposure. When the turmoil continued escalate thoughout the year they made some bad bets that came back to haunt them. You have a fund that I think was completly taken by surprise and was in a very poor position to weather this storm. I agree that anger should be directed at the advisors who placed clients into this fund. After all they are trusted by most as professionals who know their profession. In reality I think most invest their clients wealth where the advisor will get most from the funds where they are placed. There is plenty of blame to go around starting with the fund manager all the way to the Wall Street Industry but the least blame should be placed upon the average investor who trusted the advice, honesty and honor of an entire industry that betrayed that trust.
bondbuyer.........I knew before I wrote the letter that Franklin Templeton could care less about me. I was just blowing off steam I did that and I feel better about it. So, yes, you are correct in your first statement. You quote me as saying...."I have no idea how much I have lost"....with all due respect what I said was..."You have no idea" meaning Franklin Templeton. Trust me I know to the penny how much I have lost!!! You mention the 20% return in 2003. If you know anything about Mutual Funds you look at the 1-3-5-10 returns for some sort of consistency before you buy any fund. Yes, my broker pushed this fund on me among other preferred Funds. I blame no one but myself for investing in FKINX. You learn alot when you make a huge mistake. My broker is now "no longer my broker. In any event thanks for your input and I wish you well with your own investments...we are all in this together.
I think considering the losses and poor performances of this fund the past year or so Franklin should consider terminating their front load policy or something investor friendly to ease the pain caused by being in this fund. I understand that all funds have suffered horrible losses but this fund was suppose to be a conservative allocation fund but its loss performance ytd is on par with growth funds and more volatile funds. I am beginning to worry about the health of this fund considering the large amount of redemptions taking place thoughout the entire mutual fund industry. Closed funds as Oakmark have had to reopen to new investors after years of being closed. The positions and selections of their bond and stock holdings thoughout this year have been very questionable causing more doubt as to what is happening within this fund. I wish you luck with your email to Franklin but ..........
Judy....I agree, just 4 months ago this fund had about 32 Billion and now it's down to 22 Billion. I don't have alot of faith in the fund but I'm in, and down so much I can't sell. All we can do is hope they keep up the divy and at some point turn around. Thanks for your input and Good Luck.