Investors in six wound up debt schemes of Franklin Templeton Mutual Fund will get Rs 2,962 crore in the next tranche of payout. The amount will be disbursed to unitholders in the coming week.
SBI Mutual Fund (MF), which is handling the winding up of the debt schemes and payments to investors, has already distributed Rs 9,122 crore among unitholders by February 2021 following a Supreme Court order in the matter.
"SBI MF would be distributing the next tranche of Rs 2,962 crore to unitholders across all six schemes. The payment to all investors whose accounts are KYC compliant with all details available will be made during the week of April 12, 2021," a Franklin Templeton spokesperson said.
The funds will be credited through online transfer, or by cheque or demand draft if the investor has not registered for online payments. Disbursements to unitholders will be made by extinguishing proportionate units at the net asset value (NAV), as of April 9.
Investors in different schemes will receive different levels of payouts. Depending on the percentage of assets, distribution of funds in the upcoming tranche will be 28.42 per cent in Franklin Ultra Short Bond Fund, 14.18 per cent in Franklin India Low Duration Fund, 13.37 per cent in Franklin Short Term Income Fund, 6.67 per cent in Franklin India Income Opportunities Fund, 11.22 per cent in Franklin India Credit Risk Fund and 11.23 per cent in Franklin India Dynamic Accrual Fund.
Franklin Templeton had shut six of its debt mutual fund schemes on April 23, 2020, 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.
All six schemes had turned cash positive earlier this month, with Franklin India Income Opportunities Fund being the last to achieve this milestone. Being cash positive means these schemes have repaid all their outstanding borrowings.
In March this year, Supreme Court had approved the standard operating procedure by SBI MF for monetising assets and distributing the proceeds among unitholders.
(Edited by Vivek Punj)
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