Investors in shut Franklin MF debt schemes to get Rs 2,962 crore more

2021-04-11 22:30:00

MUMBAI: Investors in all the six debt schemes of Franklin Templeton Mutual Fund that are in the process of being closed down are set to get another Rs 2,962 crore in total in the week beginning April 12.
In February this year, in the first tranche, Rs 9,122 crore was distributed by the fund house to investors of five of the six schemes.
On the night of April 23, 2020, Franklin MF had announced that the six debt funds will be closed down and the fund house will return money to investors.
The process was delayed by several court cases with the Supreme Court finally clearing on January 15 this year the MF’s plan to distribute part of the funds that the six schemes had. Under the current SC-approved structure, SBI MF is the nodal body for distributing the funds to Franklin MF’s investors in these schemes.
Of the total Rs 2,962 crore, Rs 1,489 crore will be distributed to investors in Franklin MF’s Ultra Short Bond Fund, Rs 141 crore to those in Low Duration Fund, Rs 181 crore to the investors in Dynamic Accrual Fund, Rs 320 crore to the investors in Credit Risk Fund, Rs 710 crore to those in Short Term Income Fund and Rs 121 crore to the investors in Income Opportunities Fund.
Investors whose accounts are KYC-compliant will get their money during the week of April 12, a spokesperson for the fund house said. With this payout, the fund house would achieve a total distribution of Rs 12,084 crore across all its six schemes. When it announced the closures, the six debt schemes had a total corpus of nearly Rs 25,900 crore.

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