Franklin Templeton MF has informed investors that SBI Mutual Fund, the court-appointed liquidator, will be distributing the seventh tranche of about Rs 1,115.55 crore to unitholders across all six schemes.
The payment will be done to all investors whose accounts are KYC compliant and with all details available. The money will be given starting November 22, 2021. Do note that money will be paid by extinguishing proportionate units at the NAV dated November 18, 2021. Accordingly, the units held by investors in the scheme will reduce to that extent.
Franklin India Ultra Short Bond Fund (FIUBF) investors will get Rs 82.95 crore, Franklin India Low Duration Fund (FILDF) Rs 35.05 crore, Franklin India Short Term Income Plan (FISTIP) Rs 482.15 crore, Franklin India Income Opportunities Fund (FIIOF) Rs 64.40 crore, Franklin India Credit Risk Fund (FICRF) Rs 286.50 crore and Franklin India Dynamic Accrual Fund (FIDA) Rs 164.50 crore. Do note NRI investors will receive their payment after deduction of TDS.
Post this payout, the schemes would have returned about Rs 25,114 crore to unitholders amounting to 99.60 per cent of the AUM as on April 23, 2020. With this, Ultra Short Bond Fund and Low Duration Fund, would return about 100.44 and 109.35 per cent of their respective AUM as on the date of closure announcement.
As for Credit Risk Fund, Dynamic Accrual Fund, Short Term Income Plan and Income Opportunities Fund, these would distribute 101.73, 99.63, 93.11 and 98.22 per cent of their respective AUM.
There was no major activity in the first half of November. The six yield-oriented funds had received Rs 29,849 crore till end of October from maturities, pre-payments, sale and coupons since winding-up.
It all started in the late evening of April 23, when Franklin Templeton MF shook the industry with the announcement of winding-up of its suite of six yield-oriented funds. The AMC cited an extremely challenging credit climate and the fall in liquidity owing to the pandemic as the reasons. The AMC justified its decision, later challenged in courts, saying it was taken to preserve value for investors.
The six schemes – Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Short Term Income Plan, Franklin India Credit Risk Fund, Franklin India Dynamic Accrual Fund and Franklin India Income Opportunities Fund – together had over Rs 25,000 crore in assets on April 23, 2020.