Franklin Templeton will distribute ₹83 crore to unitholders of suspended Franklin India Short Term Income Plan and Credit Risk Fund on Wednesday.
The fund house has distributed ₹26,843 crore since it suspended six of its debt schemes amid severe liquidity issue after the Covid pandemic broke out in April 2020.
The six debt schemes had asset under management (AUM) of about ₹25,000 crore. The Supreme Court had appointed SBI Asset Management as the official liquidator for selling the asset in the schemes and distribute it to investors.
The Short Term Income Plan investors will be paid ₹63 crore and will be left with asset worth ₹428 crore, while the Credit Risk fund will distribute ₹26 crore and will have ₹134 crore of asset after the current distribution.
The Short Term Income plan has distributed 99 per cent of its asset, while Credit Risk has returned 109 per cent.
Disbursement so far
In all, five out of six schemes have returned over 100 per cent of the AUM at the time of winding up. Total amount disbursed so far ranges between 99 per cent and 112 per cent of the respective AUM of the six schemes as of April 23, 2020.
Four schemes have liquidated all performing assets and extinguished all units. Among the four schemes, Ultra Short Term Bond and Low Duration have paid ₹10,448 crore and ₹2,650 crore, respectively, while Dynamic Accrual and Income Opportunities paid ₹2,694 crore and ₹1,886 crore.
In addition to the payments till date, any recoveries from securities which are currently valued at zero or have matured but defaulted on their repayment obligation will be paid out to investors as and when received, said the fund house.