February-end fortnightly collections for 6 Franklin debt funds at Rs 475 cr
Cash available for distribution in the five cash positive schemes stands at Rs 1,180 cr
The six debt funds proposed to be wound up by Franklin Templeton Mutual Fund have collected Rs 475 crore in the fortnight ended February 26, 2021, more than double of the Rs 183 crore collected in the previous fortnight.
The NAVs of all the six schemes were higher as on February 26, 2021 vis-à-vis their respective NAVs on April 23, 2020, the date on which the winding up decision was taken.
The 6 schemes have received total cash flows of Rs 15,048 crore till February 26, 2021 from maturities, coupons and prepayments.
Cash available for distribution in the five cash positive schemes stands at Rs 1,180 crore as on February 26, 2021. The combined AUM of 6 schemes is Rs 17,466 crore.
While the five cash positive schemes (Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund and Franklin India Short Term Income Plan) have distributed cash of Rs 9,122 crore, the balance amount will be distributed in tranches without waiting for liquidation of all securities in the portfolio. Only those investors who required remediation or with incomplete documentation did not get cash.
The only scheme with borrowings (4%) is Franklin India Income Opportunities Fund.
The Supreme Court, in its order dated 12 February 2021, upheld the results of the e-voting under regulation 18(15)(c) held in December 2020 and confirmed the winding up of the six schemes. The apex court also appointed SBI Funds Management as the authorized person under regulation 41 to take next steps on monetization.
In April last year, Franklin shut down subscriptions and redemptions while proposing to wind up the six debt schemes citing Covid-induced illiquidity in credit markets.