Franklin Templeton returns Rs 21,080 cr to investors of 6 shut schemes

New Delhi: Franklin Templeton Mutual Fund has so far returned Rs 21,080 crore to the unit holders of its six shut debt funds.

In a letter to investors, Franklin Templeton Asset Management (India) Pvt Ltd President Sanjay Sapre said that the cash available for distribution stands at Rs 1,111 crore as on July 31, 2021.

“The six schemes have disbursed a total of Rs 21,080 crore to investors till date. This equals 84 per cent of the AUM as on April 23, 2020, and ranges from 62 per cent to 99 per cent across the six schemes,” he said.

Sapre also said that the average NAV at which the 5 tranches have been disbursed for each of the six schemes is higher than the NAV as on April 23, 2020.

“We believe this supports the decision made by the Trustee in consultation with the AMC and its investment management team to wind up the six schemes in order to preserve value for our unit holders,” he added.

With respect to the appeals filed before the SAT, the fund house noted that the SAT has issued orders staying enforcement of the SEBI’s orders conditioned on deposit of a portion of the monetary penalties.

The SEBI filed an appeal before the Supreme Court against the interim order issued by SAT in the matter of AMC. On July 26, the SC disposed of the appeal after recording its statement that they will not launch any new debt scheme till the disposal of appeal by the SAT, the company said.