Franklin Templeton MF's debt assets dip 23% in September

The assets in debt category stood at Rs 39,408 cr as on 30th Sept against Rs 50,927 cr in the previous month

Franklin Templeton Mutual Fund has seen one of the highest redemptions from its ultra-short term and liquid schemes in the month of September.

If some market sources are to be believed, the debt assets under management (AUM) of Franklin Templeton dipped about 23% or a decline of Rs 11,519 crore in September.

The assets in debt category stood at Rs 39,408 crore as on 30th September against Rs 50,927 crore in the previous month.

Business Standard could not verify these numbers independently.

A spokesperson of Franklin Templeton, this paper talked to, did not confirm the steep decline but added that during half yearly closing large institutional investors and corporates typically redeem and any fall could be because of that factor.

The Association of Mutual Funds in India (Amfi) is yet to update September data on its website.

Post Amtek Auto episode involving JP Morgan AMC, Franklin Templeton too had seen intense redemption from its liquid schemes. Sources put it as high as Rs 3,000 crore in a matter of few days.

The quarterly average AUM of Franklin Templeton, however, witnessed an increase of about Rs 3,000 crore during July-September quarter at Rs 77,328.24 crore.

Ever since Amtek Auto crisis came to the fore late August,  investors have been quite vary of investing in liquid schemes running credit risk.

JP Morgan had to split assets of two of its troubled schemes which had invested disproportionately higher money in debt papers of Amtek Auto - which got de-rated in August.

As in 31st August, about Rs 8.5 lakh crore of industry assets were in the income and liquid & money market schemes.