Franklin Templeton MF says the schemes have returned ₹14,572 crore to unit-holders amounting to 58% of AUM as on April 23, 2020
The fund house shut its six debt mutual fund schemes citing redemption pressures and lack of liquidity in the bond market
New Delhi: Franklin Templeton Mutual Fund (MF) on Wednesday said its six shuttered debt schemes distributed ₹14,572 crore to investors till May-end. Further, cash to the tune of ₹2,642 crore was available for distribution as of May 31, Franklin Templeton MF said in a statement.
The fund house shut its six debt mutual fund schemes in April 2020 citing redemption pressures and lack of liquidity in the bond market. The schemes -- 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 -- together had an estimated ₹25,000 crore as assets under management (AUM).
"The schemes have returned ₹14,572 crore to unit-holders amounting to 58 per cent of AUM as on April 23, 2020," the fund house said. Under the first disbursement in February, investors received ₹9,122 crore, while ₹2,962 crore were paid to investors during the week of April 12 and in the latest disbursement during the week of May 3, investors were paid ₹2,489 crore. In March, the Supreme Court accepted the standard operating procedure (SOP) finalised by SBI Mutual Fund to monetise assets and distribute the proceeds to unitholders of the six debt schemes of Franklin Templeton MF.
SBI MF has been appointed as the liquidator for the schemes under winding up by the Supreme Court.