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

Franklin Templeton Mutual Fund on Thursday said its six shut schemes have received Rs 7,184 crore from maturities, pre-payments and coupon payments since closing down in April. The schemes have received Rs 698 crore during September 1-15.

This takes the total cash flows received till date since April 24 to Rs 7,184 crore, Franklin Templeton MF said in a statement.

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.

Following a decision of the Delhi High Court, which allowed Franklin Templeton MF to sell pledged shares of Zee Entertainment Enterprises, the fund house said debenture trustees sold the entire shares of the media and entertainment firm and recovered Rs 92.35 crore.

“We will continue our efforts to recover the outstanding investment proceeds in the best interest of the unitholders,” it added.