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The six debt schemes of Franklin Templeton that are on the verge of being wound up have received ₹1,005 crore in the last one month from various învestments.
Since the schemes were closed on April 24, the overall inflow into the schemes has touched ₹4,280 crore till July 31 from maturities, pre-payments and coupons, said Sanjay Sapre, President, Franklin Templeton Asset Management.
Two schemes -- Franklin India Low Duration and Credit Risk -- had already turned cash-positive and have an outstanding borrowing of only one per cent and four per cent of their AUM, he said and added the debt level in other schemes are also falling.
The six debt schemes -- Franklin India Low Duration Fund, Dynamic Accrual, Credit Risk, Short Term Income Plan, Ultra Short Bond and Franklin India Income Opportunities -- had a cumulative asset under management of ₹25,000 crore when they were wound up.
The fund house has quoted SEBI norms for clearing the debt first from the proceeds before paying the investors.
No impact on AUM, NAV
The AUM of the schemes shared with investors are net of borrowings by the scheme. Hence, repaying the borrowings neither impacts the AUM nor the NAV of the schemes. NAV or AUM represents the net assets of the scheme after reducing liabilities and expenses, he said.
On July 31, three companies were due to pay their on NCDs issued. Of this two Future group companies Nufuture Digital (India) and Future Ideas have defaulted on their commitment while Rivaaz Trade Ventures met its payment obligations.
Due to default, the securities of FICL and NDIL have been valued at zero, while RTVPL will continue to be valued at 75 per cent, basis recommended valuation. The default has impacted schemes including Short Term Income, Dynamic Accrual, Income Opportunities and Credit Risk Fund.
Sanjay Sapre said there are certain unsubstantiated rumours and insinuations around the SEBI audit completion and findings in the media.
“I would urge you not to be swayed by such reports which often lack a basis. The decision on winding up of the six schemes was taken with the objective of safeguarding investors’ interest,” he added.
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