Franklin Templeton’s six debt schemes get ₹669 cr in first half of January

The six suspended debt schemes of Franklin Templeton has received ₹669 crore from învestments in the fortnight ended January 15 even as the Supreme Court will hear on Monday a petition filed by investors against the abrupt closure of the schemes.

Of the overall inflow during last fortnight, ₹617 crore was through pre-payments.

Since the closure of the schemes on April 24, they have received an inflow of ₹13,789 crore as of January 15 from maturities, pre-payments, and coupon payments.

After paying off loans to meet investors’ redemption, five schemes have ₹9,190 crore for distribution to investors, subject to fund running expenses.

The five schemes that are cash positive includes Franklin India Low Duration Fund, Ultra Short Bond Fund, Dynamic Accrual Fund, Credit Risk Fund and Short Term Income Plan.

The Ultra Short Bond Fund has the highest distributable cash of ₹5,084 crore followed by Low Duration and Dynamic Accrual with ₹1,631 crore and ₹1,039 crore while Credit Risk and Short Term Income Plan have ₹941 crore and ₹496 crore as of January 15.

Borrowing levels in Income Opportunities Fund has come down marginally to ₹101 crore in the fortnight ended January 15 from ₹106 crore logged in December-end.

As per the Supreme Court direction, the fund house has conducted investors meeting and sought investors approval for closure of schemes through e-voting. The results of e-voting have been submitted to the Apex Court, which will take a call on further action on Monday.

Meanwhile, the capital market regulator SEBI and industry body Association of Mutual Funds in India, which had filed special leave petition in the case, will also express their opinion in the court.