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Franklin Templeton MF’s six shut schemes generate Rs 8,302 cr since closure

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Franklin Templeton Mutual Fund has stated its six shut schemes have obtained Rs 8,302 crore from maturities, pre-payments and coupon funds since closing down in April. Franklin Templeton MF shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity within the bond market.

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

Part of this quantity has been utilised to repay borrowings and publish compensation, Rs 5,116 crore is offered for distribution to unitholders in 4 money constructive schemes — Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Low Duration Fund, Franklin India Credit Risk Fund, topic to fund working bills.

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 four per cent of their respective belongings beneath administration (AUM) out there in money to distribute to unitholders, it stated.

This is topic to a profitable unitholder vote, the fund home added.

The fund home reiterated that the money flows obtained up to now are with out the power to effectively monetise belongings, which can solely be potential after efficiently finishing the e-voting course of.

It additional stated the courtroom has accomplished listening to the arguments on issues associated to the six schemes beneath winding-up and the fund home is now awaiting the judgement from the courtroom.

“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 home stated.




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