February 11, 2021
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In a partial relief to three lakh battered investors, Franklin Templeton has started working with SBI Funds Management to distribute ₹9,122 crore accumulated in the five of the six debt schemes that are being wound up.
Payment to all investors whose accounts are KYC compliant with all details available will be made during the week of February 15, said the fund house.
“We have started working closely with the SBI team and are providing the assistance they require to ensure distribution of available cash at the earliest,” said Sanjay Sapre, President, Franklin Templeton Asset Management.
After nine months of wait, investors in Franklin India Ultra Short Bond will get ₹5,075 crore while Low Duration and Short term Income Fund investors will receive ₹1625 crore and ₹469 crore. Similarly, the Credit Risk and Dynamic Accrual fund investors will get ₹926 crore and ₹1,025 crore.
Franklin Templeton Mutual Fund has said its six shut schemes have received Rs 14,391 crore from maturities, pre-payments and coupon payments since their closing down in April.
Franklin Templeton MF shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market. The 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 together had an estimated Rs 25,000 crore as assets under management (AUM). The six schemes have received total cash flows of Rs 14,391 crore till January 29, 2021, from maturities, coupons and prepayments since winding up, the fund house said in a statement.
Franklin Templeton unitholders vote: What should investors do?
Investors in Franklin Templeton’s schemes will vote on whether or not to wind-up schemes December 24, 2020 / 08:59 AM IST
Eight months after Franklin Templeton mutual fund’s (FT MF) closed six of its debt schemes, and after the subsequent court battles, its unitholders will now vote and decide if these schemes should be wound-up or not.
While the legal question on whether approval from unitholders is mandatory for winding-up a scheme is being examined by the Supreme Court (SC), the fund house will seek consent from unitholders as per the directions of the Karnataka High Court.