All 6 Franklin Templeton debt schemes under winding up are now cash positive, with the funds garnering Rs 505 crore cash flows in the latest fortnight ended March 31 compared to Rs 224 in the previous fortnight.
In April last year, Franklin Templeton MF had closed subscriptions and redemptions while proposing to wind up the six debt schemes citing Covid-induced illiquidity in credit markets.
Franklin India Income Opportunities Fund has turned cash positive after repaying all its outstanding borrowings. Thus, all six schemes under winding up are now cash positive.
The 6 schemes have received total cash flows of Rs 15,776 crore till March 31, 2021 from maturities, coupons, sale and prepayments since winding up.
Cash available for distribution in all 6 schemes now stands at Rs 1,874 cr as on March 31, 2021. Remember 5 schemes viz.Â 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 had distributed Rs 9,122 crore in February 2021.
The NAVs of all the six schemes were higher as on March 31, 2021 vis-Ã -vis their respective NAVs on April 23, 2020, the date on which the winding up decision was taken.
“Our primary focus over the last several months has been, and remains, on returning money to unit holders as quickly as possible. In this regard, most recently, we have directed our efforts to supporting SBI Funds Management Pvt. Ltd. (SBI MF), the liquidator appointed by the Honâ€™ble Supreme court, in monetizing the portfolios of these schemes and returning monies to investors at the earliest, while preserving value,” Franklin Templeton said.Â
Sanjay Sapre reiterated that the fund-house remain focused on its business in India.Â