/How Franklin mutual fund’s Rs 9122 cr repayment will be divided among closed scheme investors

How Franklin mutual fund’s Rs 9122 cr repayment will be divided among closed scheme investors

NEW DELHI: Good news for some of the investors in the six schemes closed down by Franklin Templeton Mutual Fund in April 2020. The fund house will pay out the cash holding in five of the six schemes to investors in accordance with the Supreme Court verdict on the matter.

Investors in the

India Low Duration Fund will get back an estimated 63% of the value of their investment while investors in the Franklin India Ultra Short Bond Fund will get back almost 50% when Franklin Templeton Mutual Fund starts distributing cash next week.

But investors in the Franklin India Short Term Plan can expect less than 9% only, while investors in one of the six closed schemes will get nothing in the first tranche. The Franklin India Income Opportunities Fund is not yet cash positive though its borrowing levels have come down to 5%.

How much can Franklin investors expect to get back

Scheme name AUM as on 31 Jan 2021 (Rs cr)
Available for distribution (Rs cr) % of holding value investor will receive
Franklin India Low Duration 2,595 1,625 62.6
Franklin India Ultra Short Bond 10,220 5,075 49.7
Franklin India Dynamic Accrual 2,578 1,025 39.8
Franklin India Credit Risk 3,668 926 25.2
Franklin India Short Term Income 5,609 469 8.4

In a note to investors, Franklin Templeton President Sanjay Sapre explained the process and modalities of the payment of the first tranche. “Payment will be made by extinguishing proportionate units at the prevailing NAV on the date of processing,” he wrote. Investors must note that payments from 15 February to investors whose accounts are KYC compliant with all details available. “Unitholders whose PAN, KYC, FATCA, UBO, Minor through guardian or Transmission details and documentation are not available or are invalid, will be made after completion of the regulatory and compliance requirements,” the note added

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