Franklin MF’S 6 shut schemes make ₹13,789 cr since closure

NEW DELHI: Franklin Templeton Mutual Fund on Sunday said its six shut schemes have received ₹13,789 crore from maturities, pre-payments and coupon payments since closing down in April.

Franklin Templeton MF shut six debt mutual fund schemes on April 23, 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 six schemes have received total cash flows of ₹13,789 crore as of January 15, 2021, from maturities, pre-payments and coupon payments since April 24, 2020,” the fund house said in a statement.

Over the latest fortnight (January 1-15), these schemes received ₹669 crore, of which ₹617 crore was as pre-payments, it added. Individually, Franklin India Ultra Short Bond Fund, Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund and Franklin India Short Term Income Plan have 63%, 50%, 41%, 26%and 9% of their respective AUM in cash.

Borrowing levels in Franklin India Income Opportunities Fund continue to fall steadily and stands at 6% of AUM.

Franklin Templeton MF said that cash available stands at ₹9,190 crore as of January 15, for these five cash positive schemes, subject to fund running expenses.