Franklin Templeton unitholders to receive Rs 1,115 crore under their six shut schemes

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Starting November 22, all eligible mutual fund unitholders of Franklin Templeton’s now-terminated six debt schemes will receive almost Rs 1,115 crore under the seventh payout tranche, with the distribution process led by court-appointed liquidator SBI Funds Management, said a Franklin Templeton spokesperson.

Post this payout, the cumulative disbursement will amount to Rs 25,114 crore, which forms about 99.6 percent of the AUM (assets under management) as of April 23, 2020, when the fund house brought down the shutters on these schemes, citing lack of liquidity in the bond market and severe redemption pressures as primary reasons for this. 

The schemes in concern, namely Franklin India Low Duration, Dynamic Accrual, Credit Risk,  Short Term Income Plan, Ultra Short Bond Fund, and Income Opportunities Fund, together had an estimated AUM corpus of over Rs 25,000 crore. 

Prior to this payout, a total of Rs 23,998.84 crore had already been distributed, with investors receiving Rs 9,122 crore under the first tranche in February, Rs 2,962 crore in April, Rs 2,489 crore in May, Rs 3,205 crore in June, and Rs 3,303 crore in July. The last lot, which was distributed in September, was to the tune of Rs 2,918 crore.

The plan to monetise and apportion the proceeds was approved by Supreme Court in March. Provisions for repayment via cheque/DD have also been provided, in a situation where the unitholder’s account is not suited for electronic payment.