Franklin Templeton Mutual Fund’s six shut schemes have received about Rs 1,498 crore from maturities, pre-payments and coupon payments in the second half of August, the fund house said on Thursday. This takes the total cash flows received till date since April 24 to Rs 6,486 crore.
On April 23, Franklin Templeton shook the investors by closing its six debt mutual fund schemes, citing redemption pressure and lack of liquidity in the bond market.
The schemes together have an estimated Rs 25,000 crore as assets under management (AUM). These include 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.
Of the six closed schemes, Franklin India Low Duration Fund and Franklin India Credit Risk Fund (FICRF) are two schemes that turned cash positive with 5 per cent and 1 per cent of their respective AUMs available in cash to distribute unitholders. This is subject to a successful unit holder vote.
In addition to this, cash positions in Franklin India Ultra Short Bond Fund and Franklin India Dynamic Accrual Fund rose to 31 per cent and 14 per cent of their respective AUMs as of August 31.
According to a Karnataka High Court order, the e-voting and unit holders meet will remain suspended until further directions.
“Active monetisation of assets of the schemes and distribution of investment proceeds to the unitholders will be possible only after successful e-voting,” the statement noted.