Franklin Templeton MF's six shut schemes generate Rs 14,391 crore

Franklin Templeton Mutual Fund has said its six shut schemes have received Rs 14,391 crore from maturities, pre-payments and coupon payments since their closing down in April.

Franklin Templeton MF shut six debt mutual fund schemes on April 23, 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 Rs 25,000 crore as assets under management (AUM).

"The six schemes have received total cash flows of Rs 14,391 crore till January 29, 2021, from maturities, coupons and prepayments since winding up," the fund house said in a statement.

In the latest fortnight (January 16-29), these schemes received Rs 602 crore, of which Rs 350 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 65 per cent, 53 per cent, 41 per cent, 27 per cent and 11 per cent of their AUM in cash, respectively.

Borrowing levels in Franklin India Income Opportunities Fund continue to come down steadily and currently stand at 5 per cent of AUM.

Franklin Templeton MF said cash available stands at Rs 9,770 crore as of January 29 for these five cash positive schemes, subject to fund running expenses.

The balance Rs 4,621 crore has been used to repay borrowings and interest thereon of the six schemes.