Franklin Templeton MF claims: returned Rs 14,572 crore to investors in six defunct schemes

Franklin Templeton Mutual Fund (MF) said on Wednesday that its six defunct debt schemes released Rs 14,572 crore to investors till the end of May. In addition, Franklin Templeton MF stated in a statement that cash totaling Rs 2,642 crore was ready for distribution as of May 31.

The fund house announced in April 2020 that it will close its six debt mutual fund schemes due to redemption pressures and a lack of liquidity in the bond market.

Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund, and Franklin India Income Opportunities Fund had a combined asset under management of around Rs 25,000 crore (AUM). “The schemes have returned Rs 14,572 crore to unit-holders amounting to 58 per cent of AUM as on April 23, 2020,” the fund house said.

Investors got Rs 9,122 crore in the first instalment in February, Rs 2,962 crore in the second instalment in April, and Rs 2,489 crore in the third payment in May. In March, the Supreme Court approved SBI Mutual Fund’s standard operating procedure (SOP) for monetising assets and distributing profits to unitholders of Franklin Templeton MF’s six debt schemes.

The Supreme Court has selected SBI MF as the liquidator for the schemes that are being wound up.

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