Franklin’s six debt funds collect Rs 941 cr in November first half; total collection at Rs 9,682 cr

The cash available stands at Rs 5,952 cr as of November 13, 2020 for the four cash positive schemes, subject to fund running expenses

Kumar Shankar Roy Nov 18, 2020

Franklin Vodafone debtFranklin Templeton Mutual Fund’s six debt funds – which are under winding up – have collected Rs 941 crore from maturities, pre-payments, and coupon payments during the period October 30 to November 13. This is more than double of the Rs 438 crore mopped up in the previous fortnight October 16 to October 29.

Let us find out more details of the latest update.

Cash for investors

With the Rs 941 crore collected, the total cash flows received by the 6 debt schemes till date stands at Rs 9,682 crore. Out of this total amount, the actual cash available stands at Rs 5,952 crore as of November 13, 2020 for the 4 cash positive schemes, subject to fund running expenses. So, investors can get some money back as and when the courts allow payouts from the 4 schemes out of the 6 fixed income schemes that are currently in the winding up process.

At the moment, there is no direction from courts to Franklin in terms of returning at least a part of the free cash lying in schemes.

Scheme-wise health

Prepayments are happening at a fast clip. Out of the received Rs 941 crore during the period October 30 to November 13, 2020, as much as Rs 814 crore was received as pre-payments.

Individually, Franklin India Ultra Short Bond Fund (FIUBF), Franklin India Low Duration Fund (FILDF), Franklin India Dynamic Accrual Fund (FIDA) and Franklin India Credit Risk Fund (FICRF) have 43%, 27%, 26% and 8% of their respective AUM in cash.

Borrowing levels in Franklin India Short Term Income Plan (FISTIP) at 18% of AUM and Franklin India Income Opportunities Fund (FIIOF) at 30% of AUM continue to come down, but they are not cash positive yet.

Do note that each scheme can return monies to investors only after paying all the obligations/ liabilities towards borrowings/ expenses/provisions.

Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. Kumar is a financial journalist, with a functional experience of 15 years. He tracks mutual funds, insurance, pension, PMS, fixed income/debt and alternative investments markets closely. He has worked for The Times of India, The Hindu Business Line, Deccan Chronicle Group, DNA, and Value Research, among others, across different cities in India. He is deeply interested in marrying data insights with actionable opinion. He can be contacted at [email protected].

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