The six schemes that Franklin Templeton had shut since April this year have received total cash flows of Rs 11,576 crore till November 27 from maturities, pre-payments and coupon payments, out of which Rs 2,836 crore was received in November.
According to Franklin Templeton, over the latest fortnight (November 14-27), these schemes received Rs 1,895 crore, most of which (Rs 1,664 crore) was as pre-payments. The cash available as of November 27, 2020 stands at Rs 7,226 crore for the four cash positive schemes, subject to fund running expenses.
Individually, Franklin India Low Duration Fund, Franklin India Ultra Short Bond Fund, Franklin India Dynamic Accrual Fund and Franklin India Credit Risk Fund have 48 per cent, 46 per cent, 33 per cent and 14 per cent of their respective AUM in cash, respectively.
“Post the judgement of the High Court of Karnataka, we considered all possible options over the last few weeks to start returning money to unitholders in the shortest possible time in an orderly manner,” the fundhouse said in a letter to unitholders.
This included the option of seeking unitholder consent according to the judgment of the High Court, it added.
“However, after detailed deliberations, we determined that it will be necessary to seek judicial intervention from the Supreme Court to ensure an appropriate implementation of the law in the best interest of unitholders,” it said. It remains the earnest desire and endeavour of the Trustee to ensure equitable distribution of scheme assets to unitholders at the earliest possible time, Templeton said.