Franklin Templeton MF had shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity within the bond market.
The schemes — Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund, and Franklin India Income Opportunities Fund — collectively had an estimated Rs 25,000 crore as property underneath administration (AUM).
“The six schemes have received total cash flows of Rs 11,907 crore as of December 15, 2020 from maturities, pre-payments and coupon payments since April 24, 2020,” the fund home stated in an announcement on Thursday.
Over the most recent fortnight (November 28 – December 15), these schemes obtained Rs 330 crore, of which Rs 118 crore was in pre-payments.
Individually, Franklin India Ultra Short Bond Fund, Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund and Franklin India Credit Risk Fund have 49 per cent, 48 per cent, 34 per cent and 16 per cent of their respective AUM in money.
Franklin Templeton MF stated that money obtainable stood at Rs 7,488 crore as of December 15, for these 4 money constructive schemes, topic to fund operating bills.
Earlier this month, the fund home sought consent of the unitholders for the orderly winding up of the six fastened revenue schemes. The digital voting will happen from December 26–28 and adopted by a gathering of unitholders on December 29.
The unitholders must take a name on whether or not to present consent to the winding up resolution or withholding it, which might permit the schemes to reopen for buy and redemption.
The transfer got here after the Supreme Court permitted the trustee of Franklin Templeton MF to hunt consent of the unitholders for the winding up of the six schemes.
Redemptions will proceed to be suspended until the date of the subsequent listening to scheduled within the third week of January, 2021.