The 6 schemes of Franklin Templeton MF under winding up process have received total cash of Rs 13,120 crore as of December 31, 2020. These cash flows have come from maturities, pre-payments and coupon payments since their wind up was announced by the fund house on April 24, 2020.
Over the latest fortnight i.e. between Dec 16 and Dec 31, these 6 schemes received Rs 1,213 crore, the fund house said in a release.
These 6 schemes are Franklin India Ultra Short Bond Fund (Rs 10,177 crore AUM), Franklin India Low Duration Fund (Rs 2,578 crore AUM), Franklin India Short Term Income Plan (Rs 5,561 crore AUM), Franklin India Income Opportunities Fund (Rs 1,721 crore AUM), Franklin India Credit Risk Fund (Rs 3,638 crore AUM) and Franklin India Dynamic Accrual Fund (Rs 2,556 crore AUM).
Moreover, Franklin India Short Term Income Plan (FISTIP) turned cash positive over the last fortnight. This means the scheme has repaid the borrowed money.
Following significant redemption pressure, all the 6 schemes were wound up on April 24. Prior to that, these schemes had borrowed money to meet the redemption pressure. The latest update shows the fund house has repaid the borrowed money in 5 schemes — Franklin India Low Duration Fund, Ultra Short Bond, Dynamic Accrual, Credit Risk Fund and Short Term Income Plan.
The fund house also informed that the borrowing levels in the 6th scheme - Franklin India Income Opportunities Fund - continue to come down steadily and currently stands at 6% of its AUM.
The cash available for the five cash positive schemes stands at Rs 8,527 cr, subject to fund running expenses. Individually, 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 52%, 49%, 41%, 23% and 8% of their respective AUM in cash.
The Supreme Court permitted the Trustee of Franklin Templeton MF to seek consent of the unitholders for the winding up of the six schemes. Accordingly, the trustee conducted the e-voting for the same from December 26-28, 2020 followed by a unitholder meet on December 29. As directed by the apex court, redemptions in these schemes will continue to be suspended till the date of the next hearing scheduled in the third week of January 2021.
