8,262 crores since the closure of Franklin Templeton MF’s 6 Shut schemes
The Franklin Templeton Mutual Fund schemes have received Rs. 8,262 crores from maturities, pre-payments, and coupon payments since it closed its six-shut-down schemes in April. The schemes received Rs. 1,078 crores during September 1st-15th.
It will take the total cash flow from April 24th to Rs. 8,262 crores, Franklin Templeton MF said in a statement. Franklin Templeton closed six debt mutual fund schemes on April 23rd. Due to redemption pressures and a lack of liquidity in the bond market.
Of the six schemes, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Short Term Fund, and Franklin India Credit Risk Fund are 40 percent, 19 percent, 19 percent, and 4 percent of assets under management (AUM) cash to be distributed to unit-holders is available. It is subject to a successful unit-holder vote, the fund house added.
In addition, borrowing levels in the Franklin India Short-Term Income Plan and the Franklin India Income Opportunity Fund have been steadily declining. The Fund House reiterated its focus on increasing the value of unitholders in these schemes and refunding the money as soon as possible subject to the Karnataka High Court decision.
The court said it had completed its hearing on the issues related to the closure of the six schemes. The Fund House is now awaiting a court ruling.