The 6 schemes of Franklin Templeton MF under winding up process have received total cash of Rs.11, 907 crore as of December 15, 2020 from maturities, pre-payments and coupon payments since April 24, 2020.
Over the latest fortnight i.e. between November 28 and December 15, these 6 schemes received Rs 330 crore, of which Rs 118 crore was as pre-payments, the fund house said in a release.
These 6 schemes are Franklin India Ultra Short Bond Fund (Rs 10,147 crore AUM), Franklin India Low Duration Fund (Rs 2,563 crore AUM), Franklin India Short Term Income Plan (Rs 5,500 crore AUM), Franklin India Income Opportunities Fund (Rs 1,700 crore AUM), Franklin India Credit Risk Fund (Rs 3,604 crore AUM) and Franklin India Dynamic Accrual Fund (Rs 2,536 crore AUM).
The total AUM of these 6 schemes stands at Rs 26,050 crore as of December 15.
Following significant redemption pressure, these 6 schemes were wound up on April 24. Prior to that, these schemes had borrowed money to meet the redemption pressure. The fund house has now repaid the borrowed money in four schemes — Franklin India Low Duration Fund, Ultra Short Bond, Dynamic Accrual and Credit Risk Fund. These 4 schemes have now become cash positive and hold Rs 7,488 crore in cash as of December 15.
Individually, Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund and Franklin India Credit Risk Fund have 49%, 48%, 34% and 16% of their respective AUM in cash.
The debt level in the other 2 schemes - Franklin India Short Term Income Plan and Franklin India Income Opportunities Fund - has come down as well. In case of Franklin India Short Term Income Plan, the borrowing level has come down to Rs.43 crore after remaining as high as Rs.943 crore for the last two fortnights. In case of Franklin India Income Opportunities Fund, the borrowed amount was around Rs 500 crore in the last two months. But as on December 15, it has reduced to Rs 280 crore.
The trustees of Franklin Templeton India MF will seek unitholders’ permission through e-voting for closure of the debt schemes. The e-voting will be held between December 26-28 followed by a unitholder meet on December 29. Redemptions will continue to be suspended till the date of the next hearing scheduled in the third week of January, said the fund house.
