Have Rs 8,262cr in closed MFs, says Franklin

TNN
Mumbai: Franklin Templeton MF has said it has Rs 8,262 crore for distribution to its investors in the six funds it had decided to close down in April. The fund house added that the hearing in the Karnataka high court relating to its decision to close down these schemes has concluded and an order could come at any time.
The six schemes have received Rs 1,078 crore from maturities, pre-payments and coupon payments between September 16 and September 30.“This takes the total cash flows received till date since April 24, 2020 to Rs 8,262 crore,” FTMF said in an update to its investors.
On April 24, the fund house had decided to close down its Ultra Short Bond Fund, Dynamic Accrual Fund, Low Duration Fund, Credit Risk Fund, Short Term Income Plan and Income Opportunities Fund, which had total assets worth nearly Rs 25,900 crore then.
The fund house said that Ultra Short Bond Fund, Dynamic Accrual Fund, Low Duration Fund and Credit Risk Fund had 40%, 19%, 19% and 4% of their respective assets under management (AUMs) “available in cash to distribute to unitholders, subject to a successful unitholder vote”. It also said that “borrowing levels in its Short Term Income Plan and Income Opportunities Fund continue to come down steadily”.
After FTMF’s decision to close these funds, several investors had moved various courts against the fund house’s move. The Supreme Court finally directed all the court cases to be heard at the Karnataka HC, which has completed the hearing and the judgment is now awaited. “Our focus remains on maximising value for unitholders in these schemes and returning monies as soon as possible in accordance with the applicable regulations, subject to the decision of the HC,” the fund house said.