Franklin MF distributes Rs 24,000 cr to investors of 6 shut debt schemes

Franklin Templeton Mutual Fund (MF) on Wednesday said it has distributed about Rs 24,000 crore to unitholders of the 6 shuttered debt schemes. The fund house also stated that as on September 30, Rs 693 crore is available as cash for future disbursal.

In the letter to the investors, Sanjay Sapre, president, Franklin Templeton Asset Management (India), said that as of September 30, 2021, the 6 funds have already distributed Rs 23,999 crore to unitholders, representing 95 per cent of the aggregate reported assets under management (AUM) as of April 23, 2020, the day when the six schemes were wound up.

The total amount disbursed so far ranges between 84 per cent and 108 per cent of the respective reported AUM values of the 6 funds as of April 23, 2020. Further, at the time of each distribution, the net asset value of each of the funds was higher than it was on April 23, 2020--when the funds were shut.

The fund house said it remains positive on equities as easing of restrictions related to schools, theatres, capacity restrictions and a pick-up in vaccinations should lead to further economic normalization during the upcoming festive season.

"Equity markets continued to rally and touched new highs in September 2021. The rally was primarily driven by government reform/ relief measures (telecom, auto, banking), low interest rates, improved vaccine access and pick-up in service sector activities. Resumption of economic activity is reiterated by improving indicators like e-way bills, GST collection, power demand, rail freight and exports growth among others," added Sapre.