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

Franklin Templeton Mutual Fund had shut six of its debt mutual fund schemes on April 23
Franklin Templeton Mutual Fund (MF) said on Wednesday that six of its debt schemes that are being wound up received Rs 941 crore from maturities, pre-payments and coupon payments between October 30 and November 13.

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

The cash available stood at Rs 5,952 crore as of November 13 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 MF shut six of its debt MF schemes on April 23, citing redemption pressure and lack of liquidity in the debt market amid the pandemic for the closure.

Last month, the Karnataka High Court said the trustees should have taken the consent of unit holders before giving approving the winding up of six debt schemes. The court restrained the trustees from taking any further steps till unit holders consented by a simple majority.

The HC stayed the operative part of the judgment for six weeks for appeal, during which time it said no redemptions would be allowed.

The six debt schemes – the four mentioned earlier, Franklin India Short Term Income Plan and Franklin India Income Opportunities Fund –collectively managed about Rs 25,000 crore worth of AUM when they were shut.

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