Mid-March fortnightly collections for 6 Franklin debt funds halve to Rs 224 cr

Cash available for distribution in the five cash positive schemes stands at Rs 1,370 cr

Staff Writer   /   March 17, 2021
Franklin Templeton Investments

The six debt funds proposed to be wound up by Franklin Templeton Mutual Fund have collected Rs 224 crore in the fortnight ended March 15, about 50 percent drop from Rs 475 crore collected in the previous fortnight ended February 26.

The NAVs of all the six schemes were higher as on March 15, 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 15,272 crore till March 15, 2021 from maturities, coupons and prepayments.

Cash available for distribution in the five cash positive schemes stands at Rs 1,370 crore as on March 15, 2021.

Five cash positive schemes viz. 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 previously distributed total cash of Rs 9,122 crore to investors.

The borrowing level in Franklin India Income Opportunities Fund continue to come down steadily and currently stands at less than 1 per cent of AUM (approx. Rs 10 crore).

The court-appointed liquidator, SBI Funds Management Pvt. Ltd. (SBI), is in the process of preparing to liquidate the schemes and distribute proceeds to unitholders at the earliest opportunity.

A statement said that SBI, with support from Franklin Templeton, has finalized the Standard Operating Procedure (SOP) to monetize assets of the schemes under winding up and distribute the proceeds, and has filed the SOP with the Supreme Court.

“We anticipate that SBI will commence active monetization very shortly. Our focus remains on liquidating the portfolio and returning monies at the earliest, while preserving value. We will provide SBI with all possible assistance and cooperation with respect to the liquidation of the holdings,” Franklin Templeton said.

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.

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