Six schemes shut down by Franklin Templeton Mutual Fund in April earlier this year have received Rs 8,262 crore till September 30. The wound-up schemes received Rs 1,078 crore from maturities, pe-payments and coupon payments between September 16 and September 30, taking the total cash flows received by the six schemes to Rs 8,262 crore, the AMC said in a statement.
According to a note by Franklin Templeton India, the four cash positive schemes, namely Franklin India Ultra Short Bond Fund (FIUBF), Franklin India Dynamic Accrual Fund (FIDA), Franklin India Low Duration Fund (FILDF), and Franklin India Credit Risk Fund (FICRF), have 40 per cent, 19 per cent, 19 per cent and 4 per cent of their assets under management (AUM) available as cash, respectively. These funds are meant for distribution among unitholders, subject to a successful unitholder vote. Being cash positive means these funds have repaid their entire outstanding borrowings.
Meanwhile, the two schemes with outstanding borrowings - Franklin India Short Term Income Plan (FISTIP), and Franklin India Income Opportunities Fund (FIIOF) - saw borrowing levels come down steadily, Franklin Templeton stated. As of September 30, FISTIP has 19 per cent and FIIOF has 32 per cent outstanding borrowing, respectively.
Around Rs 30,000 crore of investor wealth was stuck in the six debt schemes funds of Franklin Templeton India after they were voluntarily wound up on April 23, 2020, on the back of liquidity crisis and redemption pressures in bond markets due to the coronavirus crisis.
Franklin Templeton has not disbursed any money due to ongoing litigations. The Karnataka High Court has completed hearing arguments related to winding up of the six schemes and the fund house is now awaiting the court's judgement.