Franklin Templeton’s Six Shut Schemes Generate Rs 11,907 Crore Since Closure In April
A U.S. one-hundred dollar banknote and Indian ten rupee banknotes are arranged for a photograph in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Franklin Templeton’s Six Shut Schemes Generate Rs 11,907 Crore Since Closure In April

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Franklin Templeton Mutual Fund on Thursday said its six shut schemes have received Rs 11,907 crore from maturities, pre-payments and coupon payments since closing down in April.

Franklin Templeton Mutual Fund had shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in 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 -- together had an estimated Rs 25,000 crore as assets under management.

"The six schemes have received total cash flows of Rs 11,907 crore as of Dec. 15, 2020 from maturities, pre-payments and coupon payments since April 24, 2020," the fund house said in a statement on Thursday.

Also read: Franklin Templeton Seeks Unitholder Nod To Wind Up Six Fixed Income Schemes

Over the latest fortnight (Nov. 28-Dec. 15), these schemes received 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%, 48%, 34% and 16% of their respective assets under management in cash.

Franklin Templeton Mutual Fund said that cash available stood at Rs 7,488 crore as of December 15, for these four cash positive schemes, subject to fund running expenses.

Earlier this month, the fund house sought consent of the unitholders for the orderly winding up of the six fixed income schemes. The electronic voting will take place from Dec. 26-28 and followed by a meeting of unitholders on Dec. 29.

Also read: Franklin India Says Investors May Lose Money if Plan Spurned

The unitholders would have to take a call on whether to give consent to the winding up decision or withholding it, which would allow the schemes to reopen for purchase and redemption.

The move came after the Supreme Court permitted the trustee of Franklin Templeton Mutual Fund to seek consent of the unitholders for the winding up of the six schemes.

Redemptions will continue to be suspended till the date of the next hearing scheduled in the third week of January, 2021.

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