Franklin Templeton MF has announced the disbursement of Rs 3205.25 crore to investors of its six shut debt mutual fund schemes. This will be the fourth tranche of cash distribution since the schemes were closed in April 2020. Investors have so far received Rs 14,572 crore.
Investors of Franklin India Ultra Short Bond Fund will be paid Rs 928 crore in the latest tranche. This is the 4th tranche of disbursement.
The cash distribution will amount to Rs 106 crore for the Franklin India Low Duration Fund, Rs 1,135 crore for the Franklin India Short Term Income Plan, Rs 273 crore for the Franklin India Income Opportunities Fund, Rs 555 crore for the Franklin India Credit Risk Fund and Rs 209 crore for the Franklin India Dynamic Accrual Fund investors.
The shut schemes have received inflows as maturities, part payments, pre-payments and coupons on the debt securities in their portfolio since their closure last year. While as on May 31 the 6 schemes could distribute Rs 2,642 crore, a few debt papers maturing from a conglomerate helped shore up the amount to Rs 3205.25 by June 4.
The latest payout will amount to 30.87 per cent for the investors of the Ultra Short Bond Fund and 18.52 per cent for those of the Low Duration Fund. For the Dynamic Accrual Fund and the Short Term Income Plan investors, this will come to 16.66 per cent and 26.42 per cent, respectively. Investors in the Income Opportunities Fund and the Credit Risk Fund will each be returned 19.74 per cent and 26.72 per cent as distribution.
After the latest payout, Ultra Short Bond Fund would have returned Rs 8,264 crore in total disbursements (86 per cent of April 23, 2020 adjusted AUM), followed by Rs 2,704 crore in Short Term Income Plan (49 per cent), Rs 2,301 crore in Credit Risk Fund (67 per cent), Rs 2,162 crore in Low Duration Fund (92 per cent), Rs 1,615 crore in Dynamic Accrual Fund (64 per cent) and Rs 732 crore in Income Opportunities Fund (42 per cent).
Do note that the maturity profiles of the schemes assume that all securities will be held until maturity and all interest payments and principal repayments will be made in full.
Since the winding up announcement on April 23, 2020, the NAV performance of the 6 debt funds has been between 6 to 14 per cent in absolute terms. Expressed on an annualised basis, the returns during this period range between 5.28 per cent (Income Opportunities) to 12.09 per cent (Low Duration).