Franklin Templeton’s six shut funds receive Rs 8,262 crore

As you all know, six schemes of Franklin Templeton Mutual Fund were closed in the month of April but it’s again in the limelight for receiving Rs 8,262 crore as of September 30, 2020, in the form of maturities proceeds, pre-payments, and coupons. The information was released by the asset management company (AMC).


According to the mutual fund house, four of its shut schemes viz. Franklin India Ultra Short Bond Fund (FIUBF), Franklin India Dynamic Accrual Fund (FIDA), Franklin India Low Duration Fund (FILDF), and Franklin India Credit Risk Fund (FICRF) have cash available to distribute to its unitholders, subject to a successful unitholder vote. This available cash is 40 per cent, 19 per cent, 19 per cent and 4 per cent of their respective assets under management (AUM).


Further, the borrowing levels in the remaining two funds, Franklin India Short Term Income Plan (FISTIP) and Franklin India Income Opportunities Fund (FIIOF) continue to fall steadily.


From September 16, 2020 to September 30, 2020, the shut funds received around Rs 1,078 crore.


In its note, the fund house stated, “Our focus remains on maximising value for unitholders in these schemes and returning monies as soon as possible in accordance with the applicable regulations, subject to the decision of the Hon’ble Karnataka High Court.”


The fund house added that Karnataka High Court has completed the hearing of arguments on matters related to the closing of its six schemes. Further, the fund house is now awaiting the court’s verdict.