With Franklin India Income Opportunities Fund turning cash positive, all the six Franklin Templeton's schemes currently in the winding up process have become cash positive. Being cash positive means these schemes have repaid all their outstanding borrowings. Franklin India Income Opportunities Fund has repaid borrowing to the tune of Rs 650 crore since April 2020. The six schemes-- 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 have received total cash flows of Rs 15,776 crore till March 31, 2021 from maturities, coupons, sale and prepayments since winding up.
Post distribution of Rs 9,122 crore in February 2021 through SBI Mutual Fund, cash available for distribution in all schemes now stands at Rs 1,874 crore as on March 31, 2021, says a note released by the AMC. Over the latest fortnight ended March 31, 2021, the six schemes received cash flows of Rs 505 crore. Cash inflows represent inflows from maturities, part payments, pre-payments and coupons which have been utilised for payment of borrowings/ interest/ expenses and provisions. The balance cash, if any, is invested in SBI Overnight Fund/ overnight call money market.
Earlier during the day, Franklin Templeton's President Sanjay Sapre, in a note to investors said that the fund house has no plans to exit its India business. Referring to some media reports, he said, "We were early entrants in the Indian mutual fund industry and have remained a part of the industry even while many other global asset managers decided to leave. Please let me assure you, we have no plans to exit our India business. Any speculation suggesting otherwise, or any rumours around sale of our business in India are incorrect and simply that - rumours."
The NAVs (Net Asset Value) of all six schemes of the fund house surpassed their closing value on April 23, 2020, and all are now cash positive, it noted.
Franklin Templeton had shut six debt mutual fund schemes on April 23 last year, citing redemption pressures and lack of liquidity in the bond market. The six schemes named above together had an estimated Rs 25,000 crore as AUM.
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