InvestorQ : Is it true that investors in the six funds of Franklin have already got back 75% of the money?
Riya Dwivedi made post

Is it true that investors in the six funds of Franklin have already got back 75% of the money?

Answer
image
shrinidhi Rajan answered.
1 month ago
Follow

The fine print of the Franklin Templeton statement says something different. It has announced that the 6 schemes that were shut in Apr-20 have distributed Rs.14,572 crore to the investors till 3 May. The FT president, Sanjay Sapre, has clarified that 58% of the AUM had been returned and it was 75% only for 2 out of the 6 beleaguered schemes.

It may be recollected that on February 12, investors had received Rs.9,122 crore and then on April 9, it had paid out 2,692 crore. The latest distribution was done on 30 April worth Rs.2,489 crore. The 6 funds wound up with AUM of Rs.25,800 crore in April 2020 so the current distribution of Rs.14,572 crore till date just accounts for about 57%. The funds were shut due to the crisis of liquidity in the debt and some bad investment calls made.

The entire task of distribution of proceeds of these 6 funds has been handed over to SBI Mutual Fund and they have ensured equitable distribution of the proceeds. Only funds that are cash positive, that means not having any borrowings can distribute value to the unit holders. It is not clear how much would be the eventual haircut as it would depend on the overall value realized on the illiquid debt portfolio by Franklin Templeton.

2 Views