Partial payments in 6 Franklin schemes processed

Franklin Templeton Mutual Fund has processed partial payments in six shuttered schemes after Vodafone paid interest to the fund house. The fund house has sent messages to its investors about the processing of part payments today.

“Payment in segregated portfolio 1 - 8.25% Vodafone Idea Ltd. is processed. Your account statement is being sent separately. For queries contact your advisor if any, or call us at 18002584255," said the message sent by the AMC.

Franklin Templeton Mutual Fund received interest payment of Rs 102.71 crore from Vodafone Idea Ltd for 8.25% Vodafone Idea Ltd on June 12, 2020. The money is distributed to investors in proportion to their holdings in the plans of the segregated portfolio(s).


Subir Jha, Founder, BuckSpeak, a financial planning firm, based in Hyderabad, says this payment is a good sign but not a significant one. "The payment to investors is due next month. It is a positive sign , but the money investors get will not be huge. However, the value of the Vodafone papers was marked at zero, so investors getting the money back is a win-win," says Subir Jha.

He adds that investors should understand that this is a payment from the segregated portfolio and not from the main portfolio that has been shut. "The Vodafone papers were marked to zero and segregated from the main portfolio. The repayment from your scheme, which will be a sizeable amount will only come after the e-voting and liquidation process," adds Subir Jha.

In an earlier communication Franklin Templeton AMC said, “The payout shall be processed by extinguishing proportionate units in the plans of the segregated portfolio of respective schemes. After the payment, the number of units outstanding in the investor account under said segregated portfolio of the scheme would fall to the extent of payout and statutory levy (if applicable).”

For units held in physical/statement of account mode, the partial payment of the outstanding unitholding as on 12 June 2020 will be extinguished and will be distributed to unit holders by 17 June 2020. The payout shall be subject to compliance with applicable regulations and tax deducted at source i.e. TDS, as applicable, said the AMC.