Franklin Templeton MF’s six shut schemes get Rs 941 cr in fortnight


Franklin Templeton Mutual Fund (MF) said on Wednesday that six of its debt schemes that are currently in the process of winding up had received Rs 941 crore from maturities, pre-payments and coupon payments throughout the period between October 30 and November 13, 2020.

This amount includes Rs 814 crore received as pre-payments and takes the complete cash flows received till date since April 24, 2020 to Rs 9,682 crore.

The cash to be had stands at Rs 5,952 crore as of November 13, 2020 for the four cash positive schemes, subject to fund running expenses. Individually, Franklin India Ultra Short Bond Fund, Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund and Franklin India Credit Risk Fund have 43 per cent, 27 per cent, 26 per cent and 8 per cent of their respective AUM in cash.

Franklin Templeton Mutual Fund had shut six of its debt mutual fund schemes on April 23, citing redemption pressure and lack of liquidity in the debt market amid the pandemic for the closure.

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Final month, the Karnataka High Court said that the Franklin Templeton trustees must have taken the consent of unit holders before giving the nod for winding down of six debt schemes. The court restrained the trustees from taking any longer steps till the consent of unit holders via simple majority is obtained.

The High Court stayed the operative a part of the judgment for six weeks for appeal, throughout which time it said no redemptions would be allowed.

The six debt schemes — Franklin India Ultra Short Bond Fund, Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan and Franklin India Income Opportunities Fund–collectively managed approximately Rs 25,000 crore as AUM when they were shut.

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