InvestorQ : What is the status on Templeton Fund distributing to unit holders of the six funds that were shut down last year?
Dawn Cherian made post

What is the status on Templeton Fund distributing to unit holders of the six funds that were shut down last year?

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Mitali Bhutta answered.
3 weeks ago
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Franklin Templeton Mutual Fund has now confirmed that the 6 closed debt schemes had already distributed a total sum of Rs.14,572 crore to its investors till end of May-21. That is approximately 58% of the NAV value as on Apr-20, not counting additional returns lost. FT has confirmed that it still has Rs.2,642 crore available for distribution in liquid cash. It may be recollected that Templeton had suddenly shut 6 debt schemes in Apr-20 as it could not handle redemption pressures in the light of market liquidity and poor asset quality.

The standard operating procedure or SOP for managing the monetisation of assets of the frozen funds and the distribution of the proceeds to unitholders of the 6 debt schemes of FT MF is being executed by SBI MF. The Supreme Court had asked SBI MF to undertake the activity on behalf of FT unit holders to maintain transparency and avoid conflict of interest. However, the fear is that the eventual haircut could still be quite high.

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