Franklin Templeton Mutual Fund on Wednesday said that six of its debt schemes that were shut down in April last year, received Rs 15,272 crore from maturities, coupons, and pre-payments.
The fund house had shut six debt mutual fund schemes on April 23, 2020– 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— citing redemption pressures and lack of liquidity in the bond market.
The six schemes together had an estimated Rs 25,000 crore as AUM.
“The six schemes have received total cash flows of Rs 15,272 crore till March 15, 2021, from maturities, coupons and prepayments since winding up,” the fund house said in a statement.
Over the latest fortnight ended March 15 this year, these schemes received Rs 224 crore, it added.
It, further, said net asset value (NAVs) of all the six schemes were higher as of March 15 this year, vis-a-vis their respective NAVs on April 23, 2020, the date on which the winding-up decision was taken.
Franklin Templeton MF said the court-appointed liquidator, SBI Funds Management, is in the process of preparing to liquidate the schemes and distribute proceeds to unitholders at the earliest opportunity.
SBI Funds Management, with support from Franklin Templeton, has finalised the standard operating procedure (SOP) to monetise assets of the schemes under winding up and distribute the proceeds and has filed the SOP with the Supreme Court.
It anticipates that SBI Funds Management will commence active monetisation very shortly.
“Our focus remains on liquidating the portfolio and returning monies at the earliest while preserving value. We will provide SBI Funds Management with all possible assistance and cooperation with respect to the liquidation of the holdings,” Franklin Templeton MF said.
The fund house said that cash available for distribution in the five cash positive schemes stands at Rs 1,370 crore as of March 15, 2021.