Stocks

Franklin Templeton’s six debt mutual fund schemes generate Rs 8,302 cr since closure

PTI New Delhi | Updated on October 17, 2020 Published on October 17, 2020

Franklin Templeton closed these schemes on April 23 due to redemption pressures and lack of liquidity in the bond market

Franklin Templeton Mutual Fund has said its six shut schemes have received ₹8,302 crore from maturities, pre-payments and coupon payments since closing down in April.

Franklin Templeton MF shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market.

 

“The six schemes have received total cash flows of ₹8,302 crore as of October 15, 2020 from maturities, pre-payments and coupon payments since April 24, 2020,” Franklin Templeton MF said in a statement.

Part of this amount has been utilised to repay borrowings and post repayment, ₹5,116 crore is available for distribution to unit holders in four cash positive schemes -- Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Low Duration Fund, Franklin India Credit Risk Fund, subject to fund running expenses.

Of the six schemes, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Low Duration Fund and Franklin India Credit Risk Fund have 40 per cent, 19 per cent, 19 per cent and 4 per cent of their respective assets under management (AUM) available in cash to distribute to unit holders, it said. This is subject to a successful unit holder vote, the fund house added.

The fund house reiterated that the cash flows received so far are without the ability to efficiently monetise assets, which will only be possible after successfully completing the e-voting process.

It further said the court has completed hearing the arguments on matters related to the six schemes under winding-up and the fund house is now awaiting the judgement from the court.

“Our focus remains on the important task of generating maximum value and returning your monies at the earliest possible time in accordance with the applicable regulations, subject to the decision of the Karnataka High Court,” the fund house said.

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Published on October 17, 2020
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