The six shut schemes of Franklin Templeton have received Rs 13,120 crore in the by the end of last year, since their closure in April. Out of the six plans, five have turned cash positive. As on the last day of 2020, they have Rs 8,527 crore available to disburse among unitholders.
Franklin Templeton Asset Management (India) had wrapped up its six plans on April 24, 2020 - Franklin India Ultra Short Bond Fund (FIUBF), Franklin India Low Duration Fund (FILDF), Franklin India Short Term Income Plan (FISTIP), Franklin India Income Opportunities Fund (FIIOF), Franklin India Credit Risk Fund (FICRF), and Franklin India Dynamic Accrual Fund (FIDA) - locking in Rs 30,800 crore off investor money.
"From April 24, 2020, to December 31, 2020, the six schemes under winding up have received Rs 13,120 crore from maturities, pre-payments, and coupons. Five out of the six schemes, i.e. FIUBF, FILDF, FICRF, FIDA and FISTIP are already cash positive and have close to Rs 8,527 crore available to return to unitholders, subject to fund running expenses," said Franklin Templeton.
During the last fortnight from December 16-31, 2020, these schemes received cash inflows worth Rs 1,213 crore. This saw FISTIP become cash positive during the period. FIIOF is the only plan that is yet to turn cash positive. As on December 31, 2020, it had Rs 106 crore outstanding borrowing, which amounts of 6 per cent of its assets under management (AUM) on the date.
As on December 31, 2020, Franklin Templeton India's Low Duration Fund, Ultra Short Bond Fund, Dynamic Accrual Fund, Credit Risk Fund, and Short Term Income Plan have 52 per cent, 49 per cent, 41 per cent, 23 per cent and 8 per cent of their respective AUMs in cash.
The Trustee of Franklin Templeton Mutual Fund, on orders from the Supreme Court, had conducted e-voting from December 26-28 to seek consent of the unitholders for the winding up of the six schemes. This was followed by a unitholder meet on December 29.
On orders from the apex court, redemptions in the wound-up schemes will continue to be suspended till the date of the next hearing scheduled in the third week of January 2021, Franklin Templeton said.