Franklin Templeton Mutual Fund Says 6 Shut Schemes Generated Rs 7,184 Crore Since Closure

Franklin Templeton shut six debt mutual fund schemes on April 23, citing redemption pressures and lack of liquidity in the bond market. Of the six schemes, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund, Franklin India Low Duration Fund and Franklin India Credit Risk Fund have 35 per cent,17 per cent,9 per cent and 2 per cent of their respective assets under management (AUM) available in cash to distribute to unitholders, it said.

This is subject to a successful unitholder vote, the fund house added. According to a Karnataka High Court order, the e-voting and unitholders’ meet will remain suspended until further directions.

“Active monetization of assets of the schemes and distribution of investment proceeds to the unitholders will be possible only after successful e-voting,” Franklin Templeton MF said.

In addition, the fund house said borrowing levels in the remaining two schemes — Franklin India Short Term Income Plan and Franklin India Income Opportunities Fund — continue to come down steadily.